Some payments don't come from a subordinate employment relationship, yet the Income Tax Law treats them as if they were wages: this is income treated as wages, known in Mexico as asimilados a salarios. For tax purposes they work just like payroll, because the payer withholds ISR (Mexican income tax) using the same Article 96 tax table.
Who can be paid as asimilados
- Members of boards of directors, oversight boards or advisory boards.
- Administrators, statutory auditors (comisarios) and general managers.
- People who provide independent personal services mainly to a single client and choose this regime.
- Partners or members of cooperative societies, along with other cases set out in the law.
What goes on the CFDI
The CFDI is the electronic payroll receipt stamped with the SAT, Mexico's tax authority.
| Field | What to enter |
|---|---|
| Regime type | 09 Asimilados honorarios (or another from 05 to 11, depending on the case) |
| Earning | 046 Income treated as wages |
| Employer registration, social security number (NSS) and integrated daily wage (SDI) | Not included |
What about IMSS?
Since there is no employment subordination, there is no obligation to register the service provider with IMSS (the Mexican Social Security Institute). However, if in practice the person works as a subordinate, the authorities may consider the relationship to be employment.
Things to watch
- Make sure the regime type matches the person's actual situation.
- Leave out employer registration, NSS and SDI on these receipts.
- Check that the way the service is provided is not, in fact, an employment relationship.
Legal basis
- Income Tax Law, Article 94, Sections I to VII.
- Income Tax Law, Article 96: withholding.
- Payroll receipt filling guide: catalog of regime types.
In Nomikhor, ISR on asimilados is calculated automatically with the current tax table and stamping is unlimited, so you can issue these receipts alongside the rest of your payroll.