Tax Information of commission payments for Mexico Brand Ambassadors
Updated
Guidelines:
All Brand Ambassadors who wish to obtain commissions payment under "Commissioners Regime without applying Assimilated to Salaries scheme" before Tax Administration Service (SAT), this means, the Brand Ambassador will be solely responsible and will carry out everything related to his taxes payment and obligations, among others: sending electronic (digital) accounting, presentation and delivery of provisional payments and other informative statements about his taxes in person, as well as compliance with his tax obligations in terms of provisions on Income Tax Law and, where appropriate, Value Added Tax (VAT).
Before making a decision, it is important to obtain necessary tax advice from an accountant, since interested party must make regime change by submitting the corresponding notifications to the SAT, complying with the payment of their taxes and obligations, in the understanding that he releases Plexus México from the responsibility of making the pertinent withholdings; It is worth mentioning that there are several options to carry out this activity, among them, the regimes of: Natural Person under Trust Regime, General Regime, Professional Fees or As a Legal Entity, for which advice is highly recommended. It is very useful to have a specialized accountant to support you in incorporating the most convenient tax regime, according to the needs of each Brand Ambassador, since the fiscal-accounting obligations generated by commissions will be different for each regime.
Next, we inform you of the these are the steps: and requirements to fulfill to request regime change, either as a natural or legal person:
All interested parties will receive an answer via email, validating documentation is accurate, and where appropriate, regarding any omission or error, within a period not exceeding 48 business hours after documentation receipt.
Natural person
Legal person
Nº
Document
Document
1
Constancia de situacion fiscal letter (No longer more three months) that contains active the “commissions regime” .
"Commissioners Regime without applying Assimilable to Wages option" Change request
2
Official identification
(lNE, Passport, Professional lD, Vahid License)
Constitutive Act
3
Compliance opinion (current month)
Compliance opinion (current month)
4
CURP
Power of attorney
5
Address proof
Legal representative official identification
6
N/A
Address proof
7
Bank information to make the payment (Bank statement)
Bank information to make the payment (Bank statement)
2.
lnvoices issuance by lndependent Brand Ambassador on commissions received from Plexus Worldwide México S de RL de CV. must comply with all official requirements established for the issuance of tax receipts, in addition to the following procedure:
Brand Ambassador will receive weekly, monthly, or occasional payments based on what is established by Plexus Worldwide in its official communications.
Brand Ambassador will have access to information about these payments through his virtual office.
Based on the amount displayed within his virtual office, Brand Ambassador will issue corresponding invoice for total amount plus VAT.
Depending on tax regime under which it is taxed, VAT and lSR withholdings must be calculated
lnvoices must be sent and received every Monday for validation and approval.
ln case of holidays in Mexico or United States, it will be sent next business day.
Validation process invoices received and commissions payment
Every Tuesday, invoices received will be validated. ln case of positive result, payment will be made within the following 24 hours.
lf for any reason an error is found in tax data or tax calculation, Brand Ambassador will be notified regarding cancellation and correction of said invoice via email.
lf the invoice is corrected on notification date, commissions payment will be processed within 24
lf the invoice is not corrected on notification date, commissions payment will be scheduled until the next established payment process – which could be within the following week.
Plexus Worldwide is not obligated to make extemporaneous payments, outside established hours, or before Brand Ambassador has complied with the provisions of these guidelines.
ln case of holidays in Mexico or the United States, said process will be carried out the following business day.
4.
Compliance with Tax obligations
lf Brand Ambassador (a) opts for "Commission Regime without applying Assimilable to Wages option", he is obligated to send during the first week of each month, the “Compliance Opinion with tax obligations" showing a positive result of the statement of previous month.
lf Brand Ambassador does not comply with sending said document or report to authorities a “negative” result on more than 3 occasions within fiscal year, Plexus Worldwide México S de RL de CV will change back Brand Ambassador to “assimilated to wages regime”.
ln case of not complying, Brand Ambassador will lose the privilege of this option and may request it during the following fiscal year.
5.
IMPORTANT NOTES
Any change request must be sent before every 25th day of each month and will come into effect in the month after the date of the request. Example: lf you send the application and documentation before June 25; the change will be effective in July 25 or after.
Once the Brand Ambassador has changed his regime, he must remain there for the rest of the fiscal year. Unless he breaches, as referred to in point 4 of this document.
lf a Brand Ambassador wishes to return to “assimilated to wages regime”, he must request it via email to: contabilidad@plexusworldwide.comand his change will be effective for the following fiscal year.
ln case of any modification, adjustment or additional requirement, whether requested by the authorities, or required by Plexus Worldwide México, the interested Brand Ambassadors will be informed in a timely manner no later than 30 days prior to the application or implementation of any changes.