Visit this link for an up to date information: https://www.bizlatinhub.com/financial-regulatory-compliance-mexico/ It's important to understand the local regulations in Mexico that outline your corporate responsibilities. Find out about national taxes, social security, and corporate and labour obligations for your business.

1. Corporate Compliance
For Legal Entities in
Mexico
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2. Mexico’s Compliance Requirements
Regardless of their commercial activity, all legal entities located in Mexico must
comply with a series of obligations managed by various government entities.
These obligations fall within the following categories:
1. Corporate obligations
2. National, federal and local Taxes
3. Labor obligations
4. Social security services

3. 1. Corporate Obligations
The legal entity has to meet certain corporate obligations to ensure that it is
compliant with local legal requirements.
a) Registration of foreign investment at The National Register of Foreign
Investment (RNIE) if the legal entity is incorporated within foreign capital.
This is known as “Registro Nacional de Inversión Extranjera”.
b) Hold a Shareholder meeting.
The shareholder meeting could be completed through a proxy granted to Biz Latin
Hub or an individual. Biz Latin Hub would draft a POA, allowing it to hold the annual
shareholder meeting on behalf of the shareholders. The shareholders will be
required to sign and send the original POA to include it in the company books in
Mexico.
C) Update corporate books to ensure that they are correct and maintain the
actual status of the company.

4. 2. Taxation
Every legal entity in Mexico has to meet tax obligations to ensure that it is in
compliance with the tax requirements of the Tax Administration Authority, the
SAT (Servicio de Administración Tributaria).
Calculation, preparation and filing of tax returns with the SAT is required on a
monthly and annual basis. The most prevalent taxes are:
IVA – “Impuesto al Valor Agregado” (VAT - Value Added Tax)
ISR – “Impuesto Sobre la Renta” (Income Tax)
3% Payroll Tax – “3% Impuesto sobre la nomina”

5. 3. Labor Obligations
Every legal entity in Mexico has certain labour obligations. The Labour
Authority in Mexico, is Secretaria de Trabajo y Prevision Social (STPS) - This
entity oversees the following issues:
a) Vacations: Each worker is entitled to 6 days of paid vacation per year.
After the first year, the number of days increases.
b) Aguinaldo: Christmas bonus (paid before December 20): This is equivalent
to at least 15 days salary.
c) Participacion de los Trabajadores en las Utilidades (PTU): All Mexican
employers are required to pay a mandatory profit-sharing to their
employees, applicable when the company declares profit on the annual tax
return (10%).
d) Prima Vacacional: Vacation bonus after one year of employment.
Bonus = (Daily salary x days of vacation ) x 25%

6. 4. Social Security
Employees must be registered with the “Instituto Mexicano del Seguro Social”
(Mexican Institute of Social Security)
• The employer must pay IMSS contributions and enroll to the IMSS every
foreign legal resident or Mexican hired in Mexico.
The following social security contributions are mandatory:
Health services and Maternity, Retirement Pension, Disability and Occupational
Risk Contributions among others.

7. Schedule of Annual Corporate Requirements
Requirement to be presented Frequency Date of Filing Government Agency
Hold a Sharegolder Meeting Annual Within the first 3 months of the year. -
Update the Corporate Books - After every change in the Corporate Books. -
Registration of foreign investment Quarterly - RNIE
Monthly IVA (VAT) Monthly
Until the 17th of every month.
SAT
Monthly ISR (Income Tax) Monthly SAT
Monthly 3% Payroll Tax Monthly SAT
Annual IVA Declaration Annual
Last day of March.
SAT
Annual ISR Declaration Annual SAT
Annual 3% Payroll Tax Declaration Annual SAT
Christmas Bonus Monthly Before the 20th of December STPS
Profit Sharing Annual Before the 1st of May STPS
Vacation Bonus Monthly Depends on the employee’s incorporation date. STPS
Vacations Annual Depends on the employee’s incorporation date. STPS
Pension, Health and Occupational Risk Contributions Monthly Until the 17th of every month. IMSS
RNIE = Registro Nacional de Inversiones Extranjeras (National Registry of Foreign Investment)
SAT = Servicio de Administración Tributaria (Tax Administration Office)
STPS = Secretaría del Trabajo y Previsión Social (Labor and Social Security Institute)
IMSS = Instituto Mexicano del Seguro Social (Mexican Institute of Social Security)

8. Biz Latin Hub is a market leader in
helping individuals and companies to
successfully do business globally and has
multilingual services that are reliable,
tailored and responsive.
Our group is owned and managed by an
experienced team of local and expat
professionals, dedicated to assisting our
clients to navigate their way through the
complexities of the global business
environment.
We can help!

9. See how our services can support
your global expansion.
Due Diligence Legal Services
Accounting
& Taxation

10. Are you ready to expand globally?
Contact us now.
contact@bizlatinhub.com
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