Confirmation of the Surcharge on the Payroll tax for Baja California State’s Revenue Law for 2023

On December 21, 2022, the Baja California State Revenue Law that will be in force during the fiscal year 2023 (the “Law”) was published in the State’s official gazette.

As we had anticipated, the Law contemplates two surcharges for non-fiscal purposes applicable to the payroll tax:

  • 1.20% for “strengthening of public education in the State.”
  • 1.25% for “public security and infrastructure”.

Tax base rate Tax is 1.8%; however, adding both surcharges, the tax rate is equivalent to 4.25%.

We believe the surcharges are unconstitutional and can be challenged before a Federal Court.

If taxpayers decide to challenge the recently published Revenue Law for 2023, a new “Amparo” must be filed within a period of 30 business days, counted from January 1, 2023, having a deadline for such effects on February 13, 2023.

Please do not hesitate to contact us to advise you on the matter.


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