وبلاگ

In order to deduct the Schlüsselmann insurance premium, Article 51 of the provisions of the Income Tax Act establishes the following requirements: “Insurance of key persons” is the insurance that companies provide to the person or group of persons who are essential within the organization to protect the company against risks and unforeseen events such as illness. Accidents or deaths. 1 Key Man Insurance L.D. Ivonne Rendón Roque Article Introduction The human capital that a company or economic institution possesses refers to the level of skills, experience or training of the people in the organization and defines their success. Companies consist of both tangible and intangible elements, and the latter includes human resources. In Mexico, nearly zero percent of taxpayers deduct a key man`s insurance premium because they are unaware of the impact their company`s economy may have if an indispensable and irreplaceable person were to die of illness, accident or even death. Article 27 of the Income Tax Act provides for a number of permissible deductions, including so-called key insurance, which, although not provided for by law under that name, was in practice regarded as insurance to compensate the taxpayer for the reduction in productivity that could lead to death. accident or illness of technicians or managers; However, the deduction of premiums is subject to the condition that the insurance is provided for in a plan which lays down the procedure for determining the amount of the benefit and complies with the time limits and requirements laid down in the general provisions. Although the LISR provides only a fraction to refer to this insurance, it gives rise to certain requirements such as indispensability and the levels to which it applies. These costs are considered essential, since the sums paid by the insurer following the death, accident or illness of the technician or manager allow the taxpayer concerned to continue working. Operating without this insurance exposes the company to risks and opens up the possibility that key personnel will later have health problems that would increase insurance costs. In addition, the significant tax benefits offered by this program would be wasted.

Law degree from the Technical University of Mexico (UNITEC). Employee in the telephone advice department of Grupo Gasca subscribers. 1 Protect the company from incurring these losses in the future in the event of the death or disability of a key person by paying an insured amount to the company. It is important for the contractor to consider the keyman`s rotation, as the dismissal of his position does not make the payment of the premium deductible. In this case, it is advisable to terminate the insurance contract, receive compensation, offset this amount against your income and, if necessary, take out another insurance with another beneficiary. 5 In order to deduct the Schlüsselmann insurance premium, the following conditions must be met: the insurance premium must take into account certain civil servants who are considered essential to the proper development of the company and is not generally granted under any circumstances. The insurance must be justified in a plan setting out the procedure for determining the amount of the benefit and respecting the deadlines and requirements laid down in the other tax provisions. That the payment of insurance premiums conforms to concepts that the RSDI itself identifies as deductible, or that other laws stipulate the obligation to enter into them. During the term of the policy, the insurer does not grant loans to a person with security for insured amounts, premiums paid or mathematical reserves. Insurance contracts are limited in time for a maximum period of 20 years, the duration must be defined and the premium leveled, the amount of the policy premium payment must be the same during the term of the contract.

The insured must have an employment relationship with the company or be an industrial partner in partnerships or partnerships limited by shares. In the first case, the insured must provide subordinate personal services to the company that concludes the insurance premium. On the other hand, the industrial partner provides services to the company; In these cases, however, there is no subordination. Capitalist partners cannot be insured under this modality under Article 44, Section II, of the provisions of the Income Tax Act (LRISR). It is important that the contractor takes into account the turnover of the key man, because the dismissal of his position does not make the payment of the premium deductible. In this case, it is advisable to terminate the insurance contract, receive compensation, deduct this amount from your income and, if necessary, take out another insurance with another beneficiary. The taxpayer must complete the status of entrepreneur and irrevocable beneficiary. The legal person that takes out the insurance is the beneficiary before the death or disability of the insured technician or manager, so it is the same legal person that applies this authorized deduction. In the event of termination of the insurance contract, the policy is redeemed and the taxpayer receives from his income the amount of the reimbursement in the year in which this occurs. Just as it is permissible to deduct the key insurance premium from the legal entity, in the event of termination of the contract, the contracting party can recover the policy, so it must accumulate this compensation to its income. The foregoing is based on section 18(VII) of the IRA, which provides: Section 18.

For the purposes of this Title, in addition to the income referred to in the other articles of this Act, the following shall be considered cumulative: vii. Amounts received by the taxpayer as compensation to compensate for the decrease in productivity caused by the death, accident or illness of technicians or managers. It follows from the foregoing that, in order for premium payments made in connection with the conclusion of key insurance to be deductible, several conditions must be fulfilled, so that the payment cannot be deducted if one of them is missing. In the case of insurance covering the life of a senior civil servant, it cannot be required to be deductible, whether it is a general social benefit which benefits all workers but provides for a reduction in their productivity, which may lead to the death, illness or accident of managers or, where appropriate, technicians. Insurance premium policies paid by companies for their senior managers to compensate them for the loss of productivity caused by death, illness or accident, in order to be considered as necessary costs of businesses, must be demonstrated to be a life insurance policy of the key man in the negotiation; Otherwise, it is not considered a deductible expense. Section XII of section 27 of the IRSA on the deductibility of insurance premiums distinguishes as follows: 5 Articles Organizations must protect the continuity of their operations despite any type of risk or contingency. Although prevention is usually related to monetary capital, infrastructure or technology, it is necessary to think about these key men or women. Home » Case Studies » Start Your Business » What is keyman insurance and how important is it to have one? Commercial insurance is important because it protects the organization`s assets.