Mexico: Social security (IMSS) agreement regarding reporting by subcontractors
Guidance with respect to the requirement for periodic reporting by subcontractors
Reporting by subcontractors
The social security agency (Instituto Mexicano del Seguro Social—IMSS) published in the official gazette on 13 April 2022 an agreement (ACDO.AS2.HCT.300322/68.P.DIR) providing guidance with respect to the requirement for periodic reporting by subcontractors.
The decree on subcontracting implemented labor law, social security law, and tax law measures relating to the use of outsourcing personnel and was published in the official gazette on 23 April 2021. Read TaxNewsFlash
Purpose of the agreement
- Publish monthly the list of contractors that provide specialized services or execute specialized works and must comply with the obligation to report quarterly
- Provide guidance on the use of the information on contracts for services or specialized works
- Give authorization from the contractor to the contracting party to consult the information of the contracts that were reported, as well as errors in what was reported, because the contracting parties act as jointly and severally liable parties
Periods to be reported
- First semester (January to April): to be reported from 1 May to 17 May
- Second semester (May to August): to be reported from 1 September to 17 September
- Third semester (September to December): to be reported from 1 January to 17 January of the following year
Types of information reported
- Normal: the information is reported for the first time according to the period in question
- No information: when in the reporting period no contracts were signed for the provision of specialized services or the execution of specialized works
- Complementary: when it is required to modify the information already reported and it replaces the previous information, for which it must contain both the information that is modified and that persists
Additional information that may be reported
- Correction: correct errors or correct omissions of a previous information
- Without effect: completely eliminate a previous information, when there is no obligation to do so, or leave without effect an information of the "without information" type so that they can report contracts that were entered into in the period
- Update: changes in the contracts reported due to modifications with a date after the execution of the previously reported contract
Up to four complementary declarations will be allowed for the same period, except in the case of the complementary update, which, due to its nature, is not subject to this limit.
Review of reported information
- The IMSS, in the exercise of its powers, may request data, reports or supporting documentation from the contracting parties or their third parties, in order to confirm, ratify or rectify the operations carried out, granting a period of 15 days following that in for the notice to take effect.
- The IMSS may request the service provider, via email, the correction of the information, granting a term of ten business days following receipt of the aforementioned email. The foregoing will not imply the start of the exercise of verification powers by the IMSS.
Read an April 2022 report (Spanish) prepared by the KPMG member firm in Mexico
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.