During 2014, three new tax treaties signed by Mexico with Peru, the United Arab Emirates, and Malta have been published in the Mexican Official Gazette. According to the tax treaties, their benefits will be applicable from January 1, 2015, bringing Mexico's tax treaty network to 59. Treaties with Costa Rica, Malaysia, and Nicaragua are currently being negotiated by the Mexican government, and the modifications to the 1994 Mexico–Belgium treaty are currently pending.
The withholding tax rates under these three treaties and the Mexican Income Tax Law are the following:
|
Mexican Income Tax Law |
Tax Treaty |
Tax Treaty with UAE |
Tax Treaty |
|
|
Dividends |
10% |
10% and 15% |
0% |
0% |
|
Interest |
4.9% up to 35% |
0% and 15% |
0%, 4.9%, and 10% |
0%, 5%, and 10% |
|
Royalties |
25% and 35% |
15% |
10% |
10% |
|
Capital Gains |
25% and 35% |
0% if some ownership requirements |
– |
0% if some ownership requirements |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.