HK, Mexico sign tax treaty
Hong Kong and Mexico today signed an agreement for the avoidance of double taxation and the prevention of income tax evasion.
Financial Secretary John Tsang and Mexican Secretary of Finance & Public Credit Jose Antonio Meade Kuribrena signed the agreement in Los Cabos.
Mr Tsang said the deal will strengthen the flow of investment and talent between Hong Kong and Mexico.
Tax paid in Hong Kong will be allowed as credit against tax payable in Mexico. Mexico's withholding tax for Hong Kong residents receiving interest from Mexico will be capped at 10%. The Mexican withholding tax on royalties will be capped at 10%.
Profits from international shipping transport earned by Hong Kong residents that arise in Mexico, which are currently subject to tax there, will not be taxed in Mexico under the agreement, which will come into force after the completion of ratification procedures on both sides.
So far, 27 avoidance of double taxation agreements on airline income, six on shipping income, and two on airline and shipping income have been reached.
DATE:2012.6.19
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