Fiscal tax subsidy calculation 

Definition

This specifies the subsidy applicable to the employee according to the taxable basis.

Process

Depending on the taxable base the process specifies the income level of the employee according to the subsidy application table.

The subsidy tables are published officially by the Secretary for Internal Revenue and Public Credit. This table is maintained in the system in the Implementation Guide, section: Payroll accounting ® Payroll accounting: Mexico ® Tax ® Income tax ® Tax tables ® Tax subsidy.

Once the income level has been specified, you calculate the standard tax subsidy and the marginal tax subsidy.

Later, you obtain the creditable subsidy percentage in proportion to the fiscal subsidy of the company. You can maintain the fiscal subsidy proportion in the system in the Implementation Guide, section: Payroll accounting ® Payroll accounting: Mexico ® Tax ® Income tax ® Maintain fiscal tax subsidy.

During the calculation of the annual tax adjustment for an employee that has worked in more than one company during the fiscal year, the creditable subsidy percentage is calculated taking into account not only the income from the current company but also the information recorded in the Deductions in other jobs infotype (0371)

Applying this percentage to the gross subsidy you obtain the creditable tax subsidy and the non-creditable tax subsidy.

Result

From this process you obtain the creditable and non-creditable tax subsidies.