Last February 12, 2010, a Decree was published in the Official Baja California State Gazette whereby a five percent (5%) of the Payroll Tax (PT) payment triggered on a monthly or quarterly basis is waived. This exemption is applicable to individuals or corporations which will cover their payments in a timely manner, as long as the payments are made through the web page of the Baja State Government.

In this sense, the additional tax for education has been waived, in the same terms of the PT waiver.

In case the payment is not made in a timely manner as mentioned in the first paragraph, this tax benefit will be lost for the late payment period.

The exemption will not be applicable for taxpayers enjoying another tax benefit related to this same tax, including any waiver granted in other state tax regulation.

Likewise, the Decree will not be applicable for taxpayers that have started any legal procedure against this PT, if so, they should desist before the application of the corresponding waiver.

In Transitory regulations it is mentioned that payments made prior to the enforcement of the Decree, will not be eligible to refund or compensation.
Any additional comments or doubts concerning the content of this tax bulletin please do not hesitate to contact us.

Best regards,

Contacts:
Guillermo Gomez Viramontes Tax Partner Tel. 664 972 9072 Ext.104
guillermo.gomez@monroycp.com

Mauricio Monroy Rojas  Tax partner 
Tel. 664 972 9072 Ext.106
mauricio.monroy@monroycp.com

Tags: PAYROLL, REGULATIONS