The Income Tax Treaty of 2015 between Argentina and Mexico was expected to enter into force on 23 August 2017, 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.
Related Posts

Argentina and Czech Republic end tax treaty talks
Argentina and the Czech Republic officials have concluded the income tax treaty on 14 March 2025. This follows after officials from both countries met from 11 to 14 March 2025 to negotiate their first-ever income tax treaty. This agreement
Read More
Argentina introduces VAT and income tax withholding for mining
Argentina’s tax authority has issued General Resolution 5663/2025, which amends General Resolution 5333 on 10 March 2025. General Resolution No. 5333 introduced the "Fiscal Registry of Mining Activities," creating withholding regimes for
Read More
Argentina, Czech Republic begin first round of tax treaty talks
Argentina and the Czech Republic will meet from 11-14 March 2025 to initiate negotiations for their first-ever income tax treaty. This agreement seeks to eliminate double taxation on income and capital between the two countries while combating
Read More
US: Trump halts tariffs on USMCA products
US President Donald Trump signed executive orders halting the recently imposed tariffs on imports from Canada and Mexico covered under the United States-Mexico-Canada Agreement (USMCA) yesterday, on 6 March 2025. The USMCA allows goods to move
Read More
Argentina cuts late tax payment interest rates
Argentina has reduced late tax payment interest rates and fixed them from 1 March 2025. The compensatory interest rate drops to 4.0% per month (from 7.26%) and the punitive rate to 5.0% per month (from 8.38%). Tax refunds will accrue interest at
Read More
US: Trump exempts automakers from Mexican, Canadian tariffs for a month
According to the White House, on 5 March 2025, US President Donald Trump has decided to exempt automakers from his 25% tariffs on Canada and Mexico for one month if they follow existing free trade rules. Following discussions with the three
Read More