Any type of tip to bar and restaurant workers has tax implications That is, it will mean that even if customers voluntarily tip Employees must take this into account when calculating job performance. (Personal Income Tax). In addition, they have to analyze whether they should contribute to social security.
Personal Income Tax Cover Tips
First, Article 17.1 of the Personal Income Tax Act includes amounts that come directly or indirectly from an employment relationship or from one’s own personal work. That is, other work-related income (profit) is included in addition to salary. In this sense, Tips they receive from clients will be subject to personal income tax..
In addition, the postponement is planned. In fact, Article 76 of the Personal Income Tax Regulations deals with cases where a person conducting an economic activity has to pay his employees the amount that third parties give him as tips. If they are distributed by the Company, you must make the corresponding withholding, if applicable. (which will be entered into the Treasury).
It is important to highlight that being subject to personal income tax means that they are subject to the said tax. However, it is not necessary that there will be an obligation to furnish the declaration (see Article 96 of the Act).
Voluntary tip is exclusive of VAT basis
In this Value Added Tax (VAT) is different. In fact, the amount that the client voluntarily provides (and is not payable for the service) does not enter into consideration for the restaurant to accept.
In this sense, the Directorate General of Taxation In its advisory 2174-03 dated December 11, 2003, it indicated that these amounts do not enter the hospitality services tax base.
When a quote can be
For this it is necessary to analyze the nature of this income. First, Article 147 of the General Social Security Act indicates that the base includes remuneration commensurate with the worker for his employment. On the other hand, the gratification that the client voluntarily gives may be over-paid and will be different if it is configured as business remuneration.
Carlos Deniz of Garrigues’ labor department points out that if the client delivers it to the worker himself (without the company intervening), it’s different. If it is configured as remuneration, it is salary (and, therefore, must be contributed).
It is also important to analyze how the distribution is managed and how it is provided for in the applicable contract. But it is not true that every vessel operated by the company is salary. It has to be seen under what conditions the salary is paid.
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