On May 14, 2012 Mexico’s Deputy Secretary of the Treasury and Public Credit and Qatar’s Director of Public Revenues and Taxes signed a double taxation agreement (DTA) between their two countries.
It can be expected that the agreement will facilitate increased investment between Mexico and Qatar, particularly by limiting withholding taxes and by allocating the taxing rights of each country to ensure that investors’ income is not taxed twice. The DTA will therefore provide legal certainty regarding the tax treatment in each country of income applicable to residents of the other, including corporate profits, capital gains and pensions. In addition, for example, the agreement establishes a maximum rate of withholding tax of 10% for interest and royalties.
The DTA also includes provisions, up to internationally-agreed standards, for the exchange of tax information between the revenue authorities of each country.
