Co-Authored by Joaquin Junco
The INFONAVIT announced the implementation of support measures for employers and employees located in the states of Oaxaca, Chiapas, Puebla, Guerrero, Morelos, Tlaxcala, and/or Mexico City, which are areas declared to be in a state of disaster due to the September 8 and 19, 2017 earthquakes. The "Instituto del Fondo Nacional de la Vivienda para los Trabajadores" (INFONAVIT) is the federal authority that requires employers in Mexico to withhold a percentage of an employee's salary to fund the employee's housing benefits.
The support measures established by the INFONAVIT fall under five categories. As noted, the relief measures may vary by municipality:
Employers' withholding and credit amortization obligation: During September, October, November and December of 2017, employers located in the affected municipalities of Oaxaca, Chiapas, Puebla, Guerrero, Morelos, Tlaxcala and/or Mexico City, will not be obligated to withhold employees' housing credit payments and remit them to the INFONAVIT. Employers that fail to meet their withholding and credit amortization obligation during this period will not incur in any related liability. Employers' withholding obligation will be reinstated in January 2018. Employers' tax-related matters: Until October 31, 2017, employers in the states of Puebla, Guerrero, Morelos, Tlaxcala, Oaxaca, Chiapas and/or Mexico City will not be subject to debt verification actions, except for cases that may impact the tax interest. All tax actions undertaken by the Institute (including audits of bank accounts and cash receipts) will be suspended, to resume on November 1, 2017. Employers' late payments: For employers in the affected municipalities of Oaxaca, Chiapas Puebla, Guerrero, Morelos, Tlaxcala, and/or Mexico City, the deadline to receive payments for the 5th and 6th bimonthly periods for 2017 is extended. The 5th bimonthly period can be paid no later than January 17, 2018, and the deadline for the 6th bimonthly period is extended until March 19, 2018. Such payments can be made in monthly installments, without surcharges, fines or the need to provide warranty pursuant to the current program to help bring employers up-to-date on their accounts. For employers in the affected municipalities of Oaxaca and/or Chiapas, any surcharges or fines generated for late payments for the 5th and 6th bimonthly periods of 2017 are forgiven. Insurance against damages for employees in the affected municipalities of Oaxaca,...