Corporate Responsabilities Table - Legal, Labor, Fiscal, Customs, Enviromental
| Under Collectron Shelter Plan | Stand-Alone Mexican Maquiladora | ||
|---|---|---|---|
| LEGAL | Company Incorporated | Company will be a department of Maquila International/Sonitronies/Collectron International/Sonora S Plan (no have legal presence in Mexico) | Company will be a Maquiladora Company in Mexico |
| Contract term | 2 year Contract with renewal options. Exit clause in MSA | Inmediate Company Liability | |
| ACCOUNTING / FISCAL | Transfer Pricing | Maquila International/ Sonitronies / Collectron International/Sonora S Plan has an Advanced Price Agreement approved by the Tax Authorities (U.S. and MX) | Company must comply with APA or Safe Harbor. Under Safe Harbor rules: 6.5% of costs & expenses incurred in Mexico or 6.9% of Inventory and M&E used in the maquila operation, the higher. |
| Income Tax in Mexico | Income Tax is Responsibility of Sonitronies / Sonora S Plan. Maquila International Mexican Subsidary is the taxpayer in Mexico. | Company is subject to 30% of income tax and an additional 10% of dividend tax | |
| Payroll Taxes |
Payroll Taxes are approximately 30%; a pass thru cost to the Company:
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Payroll Taxes are approximately 30%:
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| 16% of VAT on operating expenses incurred in Mexico | All operating expenses incurred in Mexico will be paid on behalf the Company and billed to the Company as pass thru cost (plus 16% of VAT); Once the Tax Authorities reimburse the 16% of VAT to Maquila International/ Sonitronies / Collectron International/Sonora S Plan, Maquila International will provide a VAT credit to the Company | The Company must submit a VAT refund request directly to Tax Authorities ( as a new entity the period of time to recover the VAT is approximately 9 + months) | |
| Financing | Maquila International/Sonitronies / Collectron International/Sonora S Plan will pay on the Company´s behalf the building rent, utilities, payroll, and other expenses incurrend in Mexico, The Company will pay to Maquila International in a term of 21 days. | Week over week the costs & expenses will be paid directly by the Company; additional staff for HR, Finance, EHS and Customs / Logistics is needed as well as incorporation costs | |
| Profit Sharing | Maquila International/Sonitronies / Collectron International/Sonora S Plan pays Profit Sharing to the Company´s employees | The Company will pay 10% of the EBIT (Earnings Before Interest and Taxes) to its employees | |
| Fiscal / Legal Compliance | Maquila International / Sonitronies / Collectron International/Sonora S Plan as the taxpayer in Mexico complies with all the bylaw requirements; Social Security and Tax audits are performed by KPMG. Maquila International/Sonitronies's Tax Advisor is PwC and Deloitte; the Foreign Trade Consultant | Reports such as Tax returns (monthly and yearly), Electronic Accounting (new for 2015), Foreign Investment Reports, Statistical Reports, Vulnerable Transactions report (money laundering), must be submitted to the Mexican Authorities. The Company will need the support from external Accounting & Legal Firms. | |
| LABOR | Labor | Maquila International / Sonitronies / Collectron International/Sonora S Plan is the employer | The Company in Mexico is the employer |
| Union | Union contract is on Maquila International / Sonitronies / Collectron International/Sonora S Plan | Union contract is on the Company | |
| MEXICAN & U.S. CUSTOMS | Mexican Customs | Sonitonies / Sonora S Plan will process all the mexican importations and exportations shipments | The Company will process all the mexican importations and exportations shipments |
| U.S. Customs | The company is the importer of Record | The Company is the importer of Record | |
| 16% of VAT on Temporary Imports | Maquila International/Sonitronies has AAA Certification for VAT purposes to avoid its clients the disbursement of 16% of VAT from imports on temporary basis. The Company will benefit from Maquila International/Sonitronies AAA Certification | The Company will need to obtain the Certification otherwhise will pay the 16% on temporary imports or guarantee the payment. | |
| ENVIROMENTAL, HEATH & SAFETY | Permits to Start Operations in Mexico |
Maquila International / Sonitronies will obtain the following Permits to start Humanscale
operations in Mexico:
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The Company will need to obtain the following Permits to start operations in Mexico:
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