What is profit sharing or PTU?
Companies must calculate and distribute PTU within the deadlines established by law and employees have the right to receive this economic participation according to their employment situation and the company’s performance.
According to the new Profit Sharing Law, the PTU has a maximum limit of three months of the worker’s salary. With the elimination of the outsourcing figure in 2021, thousands of workers are being recognized by their real employers, with all the benefits that this implies, so the percentage of profit sharing went from 2.8% to 7.7% in our country.
Who is obliged to share profits?
According to the Tax Administration Service (SAT) , all taxpayers, whether individuals or legal entities who have workers at their service, are obliged to distribute profits, whether or not they are Income Tax (ISR) taxpayers. However, there are certain cases in which companies are exempt from making this distribution, including:
- Newly created companies. During the first year of operation, companies are exempt from paying profits.
- Companies that are dedicated to creating a new product. They are exempt from profit sharing during the first two years of operation.
- Newly created extractive industry companies. They do not distribute profits during the exploration period.
- Private assistance institutions. Applies to those non-profit institutions that are recognized by law.
- IMSS and decentralized public institutions. Decentralized public institutions with cultural, welfare or charitable purposes.
- Companies with income less than 300,000 pesos. These income must be supported in the annual income tax declaration.
Which workers do not have the right to profit sharing?
In Mexico, according to the Federal Labor Law, directors, administrators, shareholder partners and general managers of companies do not receive profits. Employees who are in the following cases do not receive benefits either:
Public sector employees
Workers in the service of the State, both federal and state, as well as employees of decentralized organizations and state-owned companies, do not receive profits. However, they may have other benefits and benefits established in their contracts or internal regulations.
Domestic employees
Workers who perform domestic tasks, such as cleaners, babysitters, gardeners, among others, are not entitled to receive profits according to the law. Although they are not covered by utilities legislation, they may have other rights and benefits established in the employment contract or agreement with the employer.
Temporary or seasonal workers
Those employees whose work is subject to specific seasons or events, such as agricultural or tourism workers, do not receive profits under the law. However, in some cases, they may be entitled to benefits specific to their sector, such as season bonuses. Nor do all those professionals or technicians who provide services by paying fees receive profits.
How are profits calculated?
It is calculated based on the company’s tax profit, taking into account the income, authorized deductions and the Income Tax paid.
Based on the tax profit, the amount of the PTU is determined. 10 % of the tax profit is allocated to paying profits to employees.
The PTU is distributed among employees, which is divided proportionally among workers based on the days worked during the year and in proportion to their salary.
What are the payment deadlines?
Remember that profit sharing in Mexico is a fundamental right of workers. It is essential that both employers and workers know the legal aspects and processes involved in profit sharing to ensure its correct application.
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