Profit Sharing in Mexico (PTU)
PTU exemptions, distribution, eligible / non-eligible employees, PTU payment date deadline
Employee Profit Sharing in Mexico (PTU),
or "Participación de los Trabajadores en las Utilidades," is a constitutional right for employees to receive a portion of their employer's taxable profits.
Companies legally required to pay PTU must distribute 10% of their annual net taxable income. The net taxable income determined from the company's annual Income Tax Return filed with the Mexican Tax Administration Service (SAT).
Exemptions:
New companies are exempt during their first year of operation
Non-profit organizations and government institutions are exempt due to their non-commercial nature.
Calculation & Distribution
The total PTU amount (10% of net taxable income) is divided into two equal parts:
50% Equal Distribution: This is distributed equally among all eligible employees, regardless of their salary. The distribution is based on the number of days each employee worked during the fiscal year.
50% Proportional Distribution: The remaining 50% is distributed based on the employee's wages during the year. In other words, employees with higher salaries will receive a larger share from this portion.
Eligible Employees
All current employees who worked at least 60 days during the year
All former employees who worked at least 60 days during the year
Non-eligible Employees
Professionals who provide services and invoice for their services with no subordinate work relationship
Employees that worked less than 60 days in during the year
Directors, administrators, general managers, partners or shareholders
