Tax Overview

Mondaq Business BriefingMexico Law Articles in English (2010)

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Tax Overview

Highlights

 

National Level Tax Rates

Corporate Income Tax

30%1

Capital Gains Tax:

30%

Branch Profits Tax:

30%

Dividends Tax:

0%2

    Tax Withholding3 on:

  - Interests:

From 4.9% to 30%

- Royalties:

5 %, 25% or 30%

- Technical Assistance:

25 %

- Technical Services:

25 %

- Other Services:

From 0% to 25%

    Net Operating Tax Losses

  Carry-Forward Term:

10 years

Transfer Pricing Rules:

Yes

Tax Free Reorganizations:

Mergers, spin-offs, transfer of shares, etc., provided that certain requirements are met

    VAT on Sales:

16% (11% on border region)

VAT on Services:

16% (11% on border region)

VAT on Imports:

16% (11% on border region)

    Flat Rate Business Tax:

17.5%

Tax on Cash Deposits:

3 %

TREATY TAXATION:

Items of Income

Contracting State(1)

Dividends

Interest(3)

Patent and know-how Royalites(4)

Tech. Services(8)

Tech. Assistance

(8)

Australia

0/15%

10/15%

10%

0%

0%

Austria

5 /10%

10%

10%

0%

0%

Barbados

5 /10%

10%

1-%

0%

0%

Belgium

5 /15%

10/15%

10%

0%

0%

Brazil

10/15%(2)

10/15%(2)

10/15%(2)

0/15%(2)

0/15%(2)

Canada

5 /15%

10%

1 0%

0%

0%

Chile

5/10%

15%(2)

15%(2)

0%

0%

China

5 %

10%

10%

0%

0%

Czech Republic

10%

10%

10%

0%

0%

Denmark

0/15%

5 /15%

10%

0%

0%

Ecuador

5%

10/15%

10%

0%

0%

Finland

0%

10/15%

10%

0%

...

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