The treaty between Latvia and Mexico for the avoidance of double taxation which was signed on 20 April 2012 is to enter into force on 2 March 2013. The maximum withholding tax on dividends is 10%, reduced to 5% where the recipient company is the beneficial owner of 10% of the share capital of the company paying the dividend. The withholding tax on interest may not exceed 10%, or 5% in the case of interest paid to or from banks. A maximum 10% withholding tax applies to royalty payments.
The treaty generally started from 1 January 2014.
