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Negotiation to Amend Mexico's Current Tax Treaties


The Mexican tax system has not been subject to important amendments for fiscal year 2011, due to the lack of agreement between the executive and legislative powers to improve tax collection and increase the taxpayer base. Taxand Mexico highlights the recent tax treaties that have been agreed and when they will be in force.

Recently, Mexico has been very active in the negotiation of several tax treaties and renegotiation of several others. From 1 January 2011 Mexico's Tax Treaty with the Bahamas and Bermuda will be amended and applicable, with respect to the exchange of information. Mexico has also signed a Tax Treaty with Panama, Uruguay, Switzerland, India and South Africa which will be in force and applicable as of 1 January 2011.

The Tax Treaty negotiated with Colombia has been approved by the Mexican Senate, but its approval by the Colombian Senate is still pending. The Treaty negotiated by Mexico with Bahrain and the exchange of information treaties with the Cayman Islands and the Bailiwick of Jersey, are all awaiting Senate approval from both countries.

As of December 2010, Mexico is in the process of negotiating Tax Treaties with Aruba*, Costa Rica*, Slovenia, Gibraltar*, Hungary, Isle of Man*, the Island of Guernsey*, Marshall Islands*, British Virgin Islands*, Latvia, Lithuania, Lebanon, Lichtenstein*, Malaysia, Morocco, Monaco*, Nicaragua, Pakistan, Samoa*, Thailand, Ukraine, Republic of Vanuatu* and Turks and Caicos Islands*. The Tax Treaties put in place with the jurisdictions marked with * will be for Exchange of Information only.

Taxand's Take

The approval of the above mentioned Tax Treaties may significantly attract foreign investments into Mexico, and keep Mexico as the Latin-American country with the largest tax treaty network. Companies based in foreign jurisdictions should take note if and when their resident jurisdiction will agree a tax treaty with Mexico to take advantage of any positive tax allowances.

Your Taxand contacts for further queries are:
Manuel Tamez Zendejas
T. + 52 55 5201 7421

Raymundo Dom?nguez Mar?n
T. +52 55 5201 7400

Taxand's Take Author