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Reforms introduced in the Income Tax Law in May 1996 reduces the withholding tax rate for interest revenue obtained by foreign permanent establishments from Mexican credit institutions. The rate is reduced from 15% to 4.9% from 1 January 1996. Total accruable interest must be included in the taxable income of the Mexican credit institutions; only one third of the withholding tax may be credited against adjustment to provisional payments or the final income tax liability of such resident institutions. The remaining two-thirds of the withholding shall be deemed as final payment.
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.
For further information contact Deirdre Silberstein, Washington, on +1 202 955 4000 or enter a text search "Deloitte & Touche" and "Business Monitor".
Law 11.638/07, which deals with the accounting aspects of Brazilian corporations (sociedades anônimas), is intended to bring Brazilian accounting concepts and principles into line with those adopted in developed economies, ensuring a more reliable picture of companies’ financial health.
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