Introduction
During the first weeks of March, it is common for companies to distribute profits to their workers. However, this year, some small businesses have chosen to postpone this process. This decision is linked to recent legislation that allows micro and small enterprises (MSEs) to defer the filing of their annual tax returns and the payment of income tax (IT)
Relationship between tax payment and profit sharing
Labor legislation establishes that companies have up to 30 days after the deadline for filing the annual Income Tax return to distribute profits to their workers. However, many companies prefer to make this distribution before the tax return, as they can then deduct the amount paid as an expense in the corresponding return, reducing the tax to be paid.
Extension of the deadline for Mypes according to Law No. 31940
Law No. 31940, in force since November 2023, extends the deadline for the presentation of the annual tax return and the payment of income tax for individuals and Mypes. This regulation allows Mypes to postpone these processes for an additional two months. Consequently, the schedule of due dates for these companies will start from May 26th, instead of March, as is the case with medium and large companies
Impact on profit sharing in small companies
Due to this extension, small companies that take advantage of the postponement of tax filing and payment can also defer profit sharing to their workers. This is because the 30-day deadline for profit sharing starts from the new due date established by the postponement. It is important to note that this measure is optional and depends on the decision of each company.
Obligations of small companies in profit sharing
It is essential to remember that small companies are obliged to share profits with their workers if they meet certain criteria:
- They must have more than 20 workers on average during the year in which the profits were generated.
- They must record annual sales not exceeding 1,700 Tax Units (UIT), equivalent to S/ 8.7 million, taking the 2024 UIT as a reference.
On the other hand, microenterprises registered in the National Registry of Micro and Small Enterprises (Remype) are not obliged to distribute profits.
Recommendations for employers and workers
Employers who decide to take advantage of the postponement of profit sharing should inform their workers of this decision in a timely manner. Transparent communication is essential to maintain a good working environment and avoid misunderstandings. Workers, for their part, should be attentive to their employers’ communications and know their rights regarding profit sharing
Conclusion
The possibility of postponing tax returns and payments, and consequently profit sharing, gives small businesses greater financial flexibility. However, it is crucial that both employers and workers understand the implications of these decisions and maintain open communication to ensure compliance with labor and tax obligations.
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