Background on the Mexican Women’s Business Association (Amexme)
The Asociación Mexicana de Mujeres Empresarias (Amexme) is a prominent organization representing over 7,000 women business owners in Mexico. These women generate more than 300,000 direct and indirect jobs collectively.
Current Mexican Tax Landscape
Currently, the Impuesto Sobre la Renta (ISR) in Mexico stands at 30%, placing the country fifth among OCDE members with the highest tax rate for corporations.
Amexme’s Proposal for a Preferential ISR Rate
During the sixth forum for implementing a 40-hour workweek, Amexme president Miriam Escalante Rejón suggested a 20% preferential ISR rate for Micro, Small, and Medium Enterprises (MSEs) that comply with the reduced workweek.
- Criteria for eligibility: MSEs with no outstanding tax or labor debts and implementing work-life balance policies.
- Temporary fiscal regime: The proposed 20% ISR rate would be a temporary measure to support MSEs during the transition.
The 40-Hour Workweek: An Opportunity for Women-Owned Businesses
Escalante Rejón emphasized that women business owners understand the importance of optimizing time, resources, and energy. She highlighted that more working hours do not always equate to increased productivity; instead, they can lead to employee burnout, higher turnover, and silent absences.
By embracing the reduced workweek, employees can have more time for personal growth, family care, learning, and rest. This, in turn, results in increased creativity, commitment, health, and overall business success.
Proposed Fiscal Deductions for MSEs
In addition to the preferential ISR rate, Escalante Rejón proposed a 100% fiscal deduction for training and digitalization efforts during the transition to a 40-hour workweek.
- Ley ISR modification: Amend Article 25 of the ISR to allow MSEs to deduct 100% of productivity, leadership, and time management expenses.
- Consultancy for labor process redesign: Deduct costs related to consulting services for optimizing work processes.
- Software acquisition: Deduct expenses for time control, remote work, and automation software.
Key Questions and Answers
- What is the main proposal by Amexme? Amexme proposes a 20% preferential ISR rate for compliant MSEs and a 100% fiscal deduction for training and digitalization efforts during the transition to a 40-hour workweek.
- Why is the current ISR rate a concern for MSEs? The 30% ISR rate in Mexico is among the highest among OCDE members, posing a financial challenge for MSEs.
- How does reducing the workweek benefit businesses? A reduced workweek can lead to increased employee creativity, commitment, health, and overall business success.
- What changes does Amexme suggest to the Ley ISR? Amexme proposes amending Article 25 of the ISR to enable MSEs to deduct 100% of productivity, leadership, and time management expenses.
