Introduction
On July 1st, a pilot program was launched to grant digital platform workers access to social security and housing. However, in terms of taxation, these collaborators are not recognized as direct employees of the companies, creating a significant contradiction since they aren’t accredited, and thus, there’s no obligation to pay IMSS and INFONAVIT contributions.
Pilot Programs by IMSS and INFONAVIT
The reform of the Federal Labor Law (LFT) regulates digital platform jobs and established pilot programs by IMSS and INFONAVIT to review necessary adjustments for both the social security regime and housing contributions.
Full social security access will be achieved when platform workers receive a monthly billing equal to or exceeding the minimum wage. They will have universal accident coverage, regardless of income level, but will be considered independent workers if their earnings do not surpass this threshold.
Tax Implications
According to Arturo Pueblita Fernández, former president of the Mexican Bar Association (INCAM), the Income Tax Law (ISR) includes individuals providing transport or goods delivery services. However, for tax purposes, these individuals are not subject to an employment relationship.
“For contract purposes, these individuals are not considered workers but independent service providers,” Pueblita explains. “Since there’s no hierarchical relationship between the company paying them and those providing services, there is no obligation to pay social security or INFONAVIT.”
Under the ISR, collaborators must pay 2.1% of their gross income without deductions. Alberto Romero Topete, president of the International Tax Center Association (ITCA), adds that the Servicio de Administración Tributaria (SAT) classifies digital platform workers as independent entrepreneurs for tax purposes, not salaried employees. This situation opens new legal and administrative challenges.
“The SAT retains 2.1% of ISR, much less than the 7.6% paid by a traditional salaried employee with similar income,” Romero Topete states. “This could be definitive in some cases, causing inequity and potential under-taxation.”
Contradictions in the Reform
Arturo Pueblita argues that the government’s pilot program has structural deficiencies since it shouldn’t involve social security contributions payment.
“The program’s premise is flawed because, for both tax and labor purposes, individuals providing services through these platforms are neither employees of the company nor beneficiaries of the services,” Pueblita asserts.
Romero Topete adds that contradictions also include the lack of salary exemptions. The entrepreneurial regime does not apply the ISR waiver for bonuses, vacation pay, Sunday pay, overtime, etc., which benefit salaried employees. These incomes are subject to 2.1% retention, reducing net income.
“Not being recognized as salaried employees implies that their income generates IVA, unlike salaries,” Romero Topete explains. “This contradicts the labor reform and may lead to monthly IVA declarations.”
Key Questions and Answers
- What are the pilot programs by IMSS and INFONAVIT? These administrative-operational programs aim to address the concrete situation of digital platform workers regarding social security and housing contributions.
- Why are there contradictions in the tax and social security reform? The reform fails to recognize digital platform workers as employees for tax or labor purposes, leading to inconsistencies regarding social security contributions and additional fiscal obligations for these workers.
- What are the implications of not recognizing digital platform workers as salaried employees? Their income generates IVA instead of being exempt, and they cannot deduct work-related expenses like fuel, vehicle/bicycle maintenance, or data plans.
