The Income Tax Treaty of 2015 between Argentina and Mexico was expected to enter into force on 1st January 2018, after completing the ratification procedure. The provisions of the treaty generally follow the OECD Model Tax Convention. The treaty was ratified by Argentina on 23rd November 2016 by way of Law No. 27.334 and it was published in the Official Gazette of Argentina on 21st December 2016. The treaty allows for reduced rates of withholding tax on dividends, interest, royalties, capital gains, and certain other items of income and the treaty also contains a non-discrimination clause and a provision for limitation of benefits to combat potential abuse of the treaty. This treaty provides that withholding tax (WHT) on dividends would be limited to 10% where the recipient owns 25% of the paying company and a maximum 15% rate applies for less than 25% ownership. The treaty does not give relief from the application of the Argentine equalization tax. Interest payments would be subject to a maximum 12% withholding tax rate. In the case of royalties 10% or 15% WHT would apply depending on the type of royalty (e.g., payments for the use of intangibles, certain software licenses, know-how, and technical assistance). Also, capital gains resulting from the sale of shares would be subject to 10% WHT in the case of a direct participation of at least 25% and to a 15% rate in all other cases.