The Austrian Ministry of Finance has released a synthesised text of its tax treaty with Mexico, incorporating provisions from the Multilateral Convention (MLI) to tackle Base Erosion and Profit Shifting (BEPS) practices.
This revised agreement aims to prevent companies from artificially shifting profits to countries with lower tax rates.
The updated treaty clarifies how tax will be applied to cross-border income.
The MLI provisions will be effective for:
- Taxes withheld at source: Applicable to payments made to non-residents starting 1 January, 2024.
- All other taxes: Applicable to taxes levied on taxable periods starting 1 January, 2024, onwards.
