{"id":2084,"date":"2022-05-03T09:00:00","date_gmt":"2022-05-03T09:00:00","guid":{"rendered":"https:\/\/roelatam.com\/?p=2084"},"modified":"2025-04-23T00:15:14","modified_gmt":"2025-04-23T00:15:14","slug":"employee-participation-in-profits","status":"publish","type":"post","link":"https:\/\/roelatam.com\/es\/employee-participation-in-profits\/","title":{"rendered":"Employee Profit Share in Mexico"},"content":{"rendered":"
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Employee Profit Share (Participaci\u00f3n de los Trabajadores en las Utilidades<\/em>) (“PTU<\/u>“) in Mexico is a legal requirement for locally-based companies to share a portion of their profits with their employees. Therefore, it is something that investors must consider when planning a market entry.<\/p>

Suppose you are interested in starting a business in Mexico or are already doing business here. In that case, you will need to understand how employee profit-sharing works in the country to avoid penalties and inconveniences due to non-compliance.<\/p>

According to the law, PTU payments are not part of an employee’s salary.<\/p>

If a loss fiscal year is followed by a profit one, employees don’t have the right to be compensated after non-payment of PTU during the loss period. The PTU is not accumulative, and it is limited to a sole fiscal year.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Which companies have to share profits in Mexico?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Every company with employees that registers annual profits above MXN $300,000 (approximately USD $15,000) must share a portion of its profits with its employees.<\/p>

Profit-sharing is based on the yearly tax returns filed to the Mexican Tax Administration Service (“SAT”).<\/p>

However, some businesses do not have to pay PTU when they begin operations in Mexico. Specialized accountants and attorneys can help you obtain such benefits.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Which businesses are exempt from profit-sharing in Mexico?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Mexico’s Federal Labor Law has a specific exemption for businesses in the first year of operations. As a result, these companies are exempt from paying PTU, and, in some exceptional cases, this benefit can last up to the first two years of operation.<\/p>

Some businesses with extended PTU exception benefits include:<\/p>