HK, Mexico ink DTAA; to be effective from 2013 By TII News Service
Aug 16, 2012 , Hong Kong
MEXICO has become the first North
American country to sign a tax treaty with Hong Kong. The new treaty will make
it easier for Mexican outbound investment into Asia.
In the dearth of a
comprehensive DTA, incomes earned by Mexican residents in Hong Kong are subject
to both Hong Kong and Mexican income tax. Under the newly-signed treaty, tax
paid in Hong Kong will be allowed as a credit against tax payable in
Mexico.
The Hong Kong-Mexico DTA has incorporated the latest OECD
standard on the exchange of tax information.
There has been completion of
ratification procedures on both sides now and the document will enter in to
force from April 1, 2013. It forms part of a wider trend which has seen a number
of attempts from Hong Kong to expand its tax treaty networks with a particular
focus on exchange of information provisions.
This is the 25th such
agreement concluded by Hong Kong with its partners.
