What is Profit Sharing (PTU) in Mexico?

In Mexico, Profit Sharing (PTU), Participación de los Trabajadores en las Utilidades, is a mandatory benefit under federal labor law. It requires employers to distribute 10% of their annual taxable profits to eligible employees.


As the Employer of Record (EOR), Horizons is the legal employer and is fully responsible for handling PTU obligations for all employees engaged through our services. 


How PTU Works

  • PTU is calculated based on Horizon’s taxable income in Mexico.

  • Employees who have worked at least 60 days during the fiscal year are eligible.

  • Payments, when applicable, are typically made by May 31 of the following year.

  • The amount distributed is determined by a formula that considers each employee’s salary and days worked.


Horizon’s Role

Horizons:

  • Calculates and distributes PTU in accordance with Mexican labor law

  • Determines employee eligibility

  • Ensures full legal compliance with reporting and payment requirements

Due to Horizon’s service-based business model, taxable profits are typically low, which may result in minimal or no PTU payouts in a given year.


Client Considerations

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