Inclusion of Municipal DIF Systems in Taxpayers Exempt From Payroll Tax, a Study from the Public Administration
Authors: Priego Leoncio Marañon , Torres César Ángel López , Torres María del Rosario López , Islas Marco Antonio García 
Published: November 2024

Objective: The present investigation focuses on analyzing article 27, section II, subsection a, of the Finance Law of the State of Hidalgo, with the objective of proposing a legislative reform that allows the inclusion of Municipal Systems for the Comprehensive Development of the Family in tax exemptions from the Payroll Tax. The current exclusion of Municipal Systems for the Comprehensive Development of the Family s is due to the fact that they operate under a creation decree, in contrast to legal entities with articles of incorporation that do not pursue profit purposes and that are currently beneficiaries of said tax exemptions since both have as their objective assistance social

Theoretical Framework: The legal and fiscal basis related to the tax legislation of the state of Hidalgo is examined, with a particular focus on the payroll tax, including a review of current regulations and their practical application, providing a broad and deep context on the current legislative framework. .
The process and design of the approaches addressed to a taxpayer trustee are also analyzed, detailing the strategies and arguments used to address the exclusion from the Municipal DIF Systems. The relevant legislative process is also discussed, illustrating the steps necessary to promote legal reform.

Design/Methodology/Approach: This study uses a qualitative approach to deeply analyze the contextual, social, and regulatory aspects of payroll tax exemption for certain taxpayers. Beyond the numerical data, it seeks to understand the experiences, perceptions and motivations that influence the application and effectiveness of this exemption in Hidalgo. To do so, laws and regulations are reviewed, and specific cases and qualitative data are studied to explore the practical and financial implications of this policy for both taxpayers and the government.

Findings: A proposal to modify article 27, section II, subsection a, of the Finance Law of the State of Hidalgo is developed. The proposal is duly substantiated, motivated, and presented to a Taxpayer Trustee. Which suggests explicitly including SMDIFs within the tax exemptions, recognizing their crucial role in social assistance and allowing them to operate without the additional burden of the Payroll Tax.

Social Impact: Conducting a meticulous and rigorous investigation into the inclusion of municipal DIF systems as beneficiaries of the payroll tax exemption becomes essential due to the wide dispersion of these systems throughout the country, which numbers almost 1,500 municipal DIF systems. This considerable number of municipal entities offers a unique opportunity to examine a variety of local scenarios, conditions, and characteristics that could influence the implementation and impact of this fiscal measure.

Originality/Value: When addressing this issue, not only the legal and regulatory dimensions are taken into account, but also the economic, social and political aspects that influence the interpretation and application of tax laws in the Public Administration. Thus, this research contributes to the development of new knowledge, the generation of new perspectives and the continuous improvement of practices in the field of tax interpretation and Public Administration policies.