Congress approves the amendment to the outsourcing regime

 Professional related: Claudio Jiménez de León , Enrique Ramírez , Nora Morales   |      April 21st, 2021

On April 20, 2021, the Senate of the Republic approved the amendment proposed to the subcontracting regime. The most important labor and tax aspects are the following:

1. Subcontracting personnel is prohibited, with subcontracting of personnel being understood as a provision of services in which an entity or individual provides or makes available to another entity its own employees for the other entity’s benefit.

2. Contracting specialized services will be permitted only if such services or tasks are not part of the corporate purpose or main economic activity of the contracting party, and as long as the contracted party is listed in a public registry.

3. Complementary or shared services or tasks provided between companies of the same corporate group will also be considered as specialized as long as they are not considered within the corporate purpose or the main economic activity of the company that receives such services or tasks.

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