sábado, 12 de agosto de 2017

Spain-Mexico Double Tax Treaty amended by Protocol

The 2015 protocol to the 1992 tax treaty will enter into force on 27 September 2017 and will apply for withholding tax purposes as from that date. When in effect, the protocol provides for a 0% withholding tax rate on dividends paid to a company whose capital is wholly or partially divided into shares and that holds directly at least 10% of the capital of the payer company, or paid to a pension fund; otherwise, the rate will be 10%. A 0% rate will apply to interest paid to a pension fund; a 4.9% rate will apply to interest paid on loans granted by a bank or other financial institution (including investment banks, savings banks and insurance companies) and to interest paid on bonds and other debt instruments that are regularly and substantially traded on a recognized stock exchange; otherwise, the rate will be 10%. The withholding tax rate on royalties will not be affected by the protocol.

Source: Deloitte

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