Is It Still Necessary to Issue a Tax Withholding Certificate to Your Employees?

Since 2018, employers in Mexico are no longer required to issue a tax withholding certificate because all relevant tax information is now automatically included in stamped payroll receipts (CFDI) and registered directly with the Mexican Tax Administration Service (SAT).

Even though this is no longer a legal obligation, providing this documentation can still be a valuable practice to strengthen your relationship with employees and support their fiscal compliance.

✅ Why Consider Issuing a Withholding Certificate?

While the formal requirement no longer exists, many employees still request this document as proof that their taxes have been correctly withheld.

Offering an annual payroll summary reflects your company’s commitment to transparency and brings several benefits:

1. 📅 Simplifies your employees’ annual tax return processProvides a clear overview of income and withholdings, making tax compliance easier.

2. 📊 Improves HR administrative efficiencyDetailed, accurate reports streamline internal processes and enhance organizational efficiency.

3. 🤝 Strengthens trust and transparency within the organizationDemonstrates your company’s dedication to fiscal clarity and fosters a culture of collaboration and confidence.

   
   

💡 How Can You Provide This Information to Your Employees?

If you choose to offer this additional support, here are some effective ways to share the information:

• 📄 Generate an annual payroll summaryUse your payroll system to create detailed reports covering income, deductions, and withholdings.

• 💻 Help employees access their payroll CFDIEnsure employees know how to access their stamped receipts through the SAT portal.

• 📈 Offer personalized internal advisory servicesProvide accounting support to help employees resolve questions about withholdings or their annual tax return process.

  
  

📅 Getting Ready for the 2025 Annual Tax Return

Issuing an annual income and withholding summary for 2024 can help your employees meet their tax obligations smoothly and foster a supportive, trustworthy work environment.

🤓 Need Help Navigating Your Tax Responsibilities?

Fulfilling your employer obligations can be simpler than you think.

Schedule a NO CHARGE consultation with our tax experts. We’re here to answer your questions and help ensure your business remains compliant.