translated from Spanish: SAT will now seek to withhold taxes on tips you leave in establishments

Photography/Imagenzac
Mexico.- According to the Official Journal of the Federation (DOF), the Tax Administration Service (SAT) states that tips are part of a worker’s salary and Income Tax (ISR) must be withheld.
Under section 346 of the Federal Labour Act, tips received by workers in hotels, assistance homes, restaurants, anchorages, cafes, bars and other similar establishments are part of the worker’s salary.
“For the foregoing, the above-mentioned tips granted to workers must be considered by the employer in order to carry out the calculation and retention of the ISR which, if any, is borne by the worker, under the terms of Article 96 of the ISR Act” , according to the Official Journal of the Federation (DOF).
According to Santiago Martínez Dordella, local president of the National Chamber of the Restaurant Industry and Seasoned Foods (Canirac), there are inconsistencies since the Profeco does not require to suggest an amount for the tip payment, so it is difficult to know and set how much you get a tip.
“This situation is going to be very complex and it’s going to lend the case to misunderstandings. It must be the point of having the Profeco that the tip cannot be suggested either in the letter or the ticket or anywhere, but we must put up signs that the tip is optional. With this speech as they now want to charge them proportionately because it will be difficult to determine how many tips each one earns,” Martínez Dordella told the newspaper El Zocalo.
Source: Forbes

Original source in Spanish