Deduction Types

In Mexico, there are different types of deductions:

• Before taxes − reduces the net salary and the taxable gross for federal retention. Examples are maternity leave, tardiness, and sick leave.

• After taxes – reduces the net salary. Examples are savings fund and union contributions.

• Subject to state tax − represents all deductions that are subtracted from the taxable base of the state tax. Examples are disabilities and absences.

• State taxes − each state has its own taxable base.

Note:

You define deductions using the Deductions component.