Malta – Mexico Tax Treaty In Force

9th August 2014

The Malta-Mexico double tax treat provides for double taxation relief in relation to:

1. Mexico’s federal income tax and the business flat rate tax; and
2. Malta income tax.

The main features of this treaty are as follows:

• Dividends – 0% withholding tax.
• Interest arising in one Contracting States and paid to a resident of the other may be taxed in that other state and may also be taxed in the Contracting State in accordance with the laws of that State.

If the beneficial owner of the interest is a resident of the other Contracting State, the tax charged shall not exceed:

1. 5% of the gross amount of the interest from loans granted by a bank;
2. 10% of the gross amount of the interest in all other cases.

• Royalties – the same rules apply as for interest, however if the beneficial owner of the interest is a resident of the other Contracting State, the tax charged shall not exceed: 10% gross of the royalties.

The Malta – Mexico double tax treaty with Mexico, following the Malta – Uruguay double tax treaty, signals Malta’s intention to strengthen economic relations with Latin American Countries, with the aim of concluding other similar agreements with countries of the same region.

About Acumum – Legal & Advisory

Acumum Legal & Advisory is a well-established set of multidisciplinary legal, tax and accounting firms located and managed in the tax efficient EU jurisdiction of Malta. It operates as a full service law firm with services including aviation, corporate formation, accounting, estate & wealth planning, taxation, intellectual property and more. The firm is overseen by Geraldine Noel, a British barrister – registered in Malta, working alongside an expert team of lawyers and accountants with extensive specialist commercial and private client expertise, particularly to an individual, corporate and family office clientele.