Can you get union fees back on tax?

Can you get union fees back on tax?

Trade unions declare taxes

No, you only withhold and pay amounts payable to third parties, however, there are some cases in which for the additional activities you perform you must pay Value Added Tax (VAT).

When you receive independent personal services, or use or temporarily enjoy goods provided or granted by individuals, you will be obliged to withhold the tax that is transferred, as well as when you receive services provided by commission agents when they are individuals, or when you receive land transportation services of goods, provided by individuals or legal entities.

The payment must be made by electronic transfer through the portal of the authorized credit institutions, after filing a declaration with the Tax Returns and Payments Service (referenced payment).

Legal Entities that carry out operations taxed with VAT, including at 0% rate, or that are registered in the RFC with the obligation of such tax, must file the Informative Declaration of Operations with Third Parties on a monthly basis.

Non-deductible payments to labor unions

Well, we saw the Lease of Habitual Housing and in this occasion we will deepen on the Union Dues, the Personal and Family Data, the Disabilities, the Deduction for Maternity, the Pension Plans and the Deduction for Improvement Works.

Logically, if our personal situation has changed with respect to previous years, we will have to communicate it. The most usual thing is that the Treasury does not know if, for example, we have married or divorced, as well as if we have been widowed or have been parents. For that reason, we must have very present that there is no correlation between the Model 145 of Withholdings with the Draft, in the sense that no matter how much we consign the modifications to the Company, the Treasury can not reflect these changes.

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Those contributions that are made, both to Political Parties and Unions are deductible, but the Treasury does not usually reflect it, since it does not know the amounts that the contributor is paying for this concept.

In this case and with the same philosophy as the previous point, it is highly interesting for taxpayers who have a disability to check that it is duly applied, as well as to check through the Draft if the deductions to which they are entitled are being applied, not only at the state level, but also at the regional level.

Union bonuses

If you are a salaried worker, it is very likely that you are part of a labor union, an organization that represents the collective interests of workers before the employer. But union membership is not free, so don’t be surprised if you see a union dues in the breakdown of your paycheck.

Although Article 10 of the Federal Labor Law states that “deductions from workers’ salaries are prohibited”, this measure excludes the payment of ordinary union dues, which are covered by Section VI of the same article.

However, the employee may prevent this deduction from being made from his or her salary. It is sufficient to make a written request to his employer, making explicit his refusal to pay more union dues.

Unions pay VAT in Mexico

Taxpayers may apply a deduction of 20% of dues paid to labor unions. Likewise, they can apply a deduction of 20% of the affiliation fees and contributions to political parties.

In order to be able to apply this deduction, taxpayers must be included in the informative return referred to in letters h) and i) of Article 116 of Foral Regulation 13/2013 and paragraphs 6 and 7 of Article 117of the Tax Regulations (Form 182).

Can you get union fees back on tax?
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