On March 15, 2023, Mexico became the 80th. Jurisdiction that deposits the instrument of ratification of the Multilateral Instrument that modifies Bilateral Tax Agreements to implement BEPS measures (MLI).

The Agreement shall enter into force for each Signatory on the first day of the month following the expiration of a period of three months from the date of deposit by said Signatory of its instrument of ratification, acceptance or approval. That is, the MLI will enter into force in Mexico as of July 1, 2023.

Regarding the taxes withheld at source (e.g. Mexico) on the amounts paid or credited to non-residents, the Agreement will take effect when the event that generates the tax occurs as of the first day of the calendar year that begins as of the last of the dates on which this Agreement enters into force for each of the Contracting Jurisdictions to the Covered Tax Agreement. That is, January 1, 2024.

Together with the deposit of the MLI, Mexico presented its reservations and notifications on the Bilateral Agreements included in the MLI.

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Mexico City, Mexico

March 2023