The Participación de los Trabajadores en las Utilidades de las Empresas (PTU) is aimed at the distribution of wealth generated by organizations and the encouragement of greater productivity in them. Hence in May each year companies must calculate and pay their workers this concept.
Fiscally, the PTU can be decreased in interim payments as a fiscal stimulus dedicated to corporations which pay taxes in Title II of the Income Tax Law Regime General, Article 1.1 of the Decree that compiles various tax benefits and establishes administrative simplification measures, published on 26th December 2013. This application consists on subtract from the determined tax profit for the interim payment, the amount of profit sharing paid equally for the months from May to December of the fiscal year in question. The decrease will be held in interim payments for the year cumulatively.
– If paid in subsequent months to May
If the distribution of profit sharing is not timely fulfilled and performed at any time after May, the decrease can only be carried out from the month in which it is distributed to workers.
For example, if this item is paid in July, the reduction will be:
– If paid in May but not decreased in that month
The right to the decrease is not lost, in June may decrease the amount resulting as follows:
If the company is precluded by the lack of liquidity to distribute the PTU, it is recommended that an agreement with the workers is made, in which they accept that they cover the amount corresponding to that concept after the legally stablished date. This agreement must be ratified before the Board of Conciliation and Arbitration, who will approve it if there is no waiver of the rights of employees. This is made in order to avoid sanctions for such failure, or that a worker reports to the Board to demand payment (Articles 33, 57 last paragraph, 992 and 994, Federal Labor Law. – LFT).