CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
OPERADORA DE SITES MEXICANOS, S.A.B. DE C.V. AND SUBSIDIARIES
Dignified vacation reform
The vacation reform published in the Official Gazette on 27 December 2022 and effective as of January 1st 2023 amends Articles 76 and 78 of the Federal Labor Law, which address
vacation periods. Workers who have more than one year of service are now entitled to 12 paid vacation days per year, increasing by two days for each additional year of service until
the fifth year (20 days). As of the sixth year, the number of vacation days granted to employees will increase by two days for each additional five years of service. Each employee may
use such vacation days as they prefer, upon agreement with their employer. Article 78 was amended to indicate that, of the total vacation period provided for in Article 76, the worker
shall be entitled to at least twelve continuous days. As at 31 December 2022, the Company recognized an increase in the provision for paid annual leave in its financial statements.
Labor outsourcing reform
In April 2021, the Mexican government amended the Federal Labor Law, the Federal Tax Code and other laws that regulate employment in order to prohibit the outsourcing of
employees, except under specific circumstances. Derived from this tax reform, entities are not allowed to deduct outsourcing expenses or credit their input value added tax on
outsourcing expenses. In a worst-case scenario, labor outsourcing may be considered as tax fraud. This reform became effective on September 1st 2021.
As a result of the labor outsourcing reform, the Company transferred employees between Group companies, along with all labor obligations related to past services provided. The
labor outsourcing reform had no effect on the Company's consolidated financial statements.
Employee profit sharing
As a result of the labor outsourcing reform, in 2021 the method used to calculate employee profit sharing was modified. New requirements were established, whereby the employee
profit sharing payable to each employee is capped at three times their current monthly wage or the average employee profit sharing received by the employee in the three prior years
(assigned employee profit sharing), whichever is higher.
If the amount of employee profit sharing determined by applying the 10% rate to taxable profit is higher than the sum of the employee profit sharing allocated to each employee, the
latter must be considered as the amount of employee profit sharing payable for the period. In accordance with the Mexican Labor Law, the difference between these two amounts
does not generate a payment obligation either in the current or future periods.
If current employee profit sharing calculated using a 10% rate of an entity's taxable profit is equal to or less than the amount of the employee profit sharing assigned to each
employee, the former shall be considered as the current employee profit sharing for the period.
18. CONTINGENCIES AND COMMITMENTS
Since 2013, the Mexican government has been formulating a new regulatory framework for the country's telecommunications and the broadcast sectors. This new regulatory framework
is based on a set of constitutional reforms that were enacted in June 2013, which took effect in July 2014, and which led to the enactment of a new Federal Telecommunications
and Broadcasting Law and Mexican Public Broadcasting System Law to replace the existing regulatory framework.
As a result, the Federal Telecommunications Institute (IFT) was created as an independent agency tasked with promoting and regulating access to Mexico's telecommunications
and broadcast infrastructure (including passive infrastructure).
The IFT also has the power to oversee fair competition in the telecommunications and broadcast sectors by imposing asymmetric regulations on sector participants that it deems
market dominant and it may also declare that a company is a so-called "preponderant economic agent" in either of these two sectors.
In March 2014, the IFT issued a ruling (the Ruling) through which it declared that America Móvil and Telcel, together with other market participants, represented an "economic
interest group" that is a so-called "preponderant economic agent" in the telecommunications sector. The IFT ordered America Móvil and Telcel to take specific actions to force both
companies to grant access to and to share their passive infrastructure with other carriers. The Company's and the Trust's passive infrastructure includes non-electronic components
used in telecommunications networks, including but not limited to rights of way, ducts, masts, ditches, towers, posts, equipment installations and related supplies, security, auxiliary
equipment, land, physical space and pipes.
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