Does Mexico Have a Tax Treaty with Canada

2. Any information received from a State Party under paragraph 1 of this article shall be considered secret in the same manner as information obtained under the domestic law of that State and shall be made available only to persons or authorities (including courts and administrative authorities) involved in the assessment or collection, the execution or continuation of the decision on remedies in respect of the taxes referred to in paragraph 1 or the Supervision of the foregoing. Such persons or authorities shall use the information only for those purposes. You may disclose the information in connection with public legal proceedings or court decisions. Mexico levies income tax on residents, non-residents with a permanent establishment in Mexico and non-residents whose income is attributable to Mexican sources. 4. Paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends resident in a Contracting State carries on business in the other Contracting State in which the company paying the dividends resides through a permanent establishment situated therein and the holding for which the dividends are distributed is effectively linked to that permanent establishment. In that case, Article 7 shall apply. (a) If the remuneration received in the other State Party during the calendar year in question does not exceed sixteen thousand Canadian dollars ($16,000) or their equivalent in Mexican pesos or such other amount as may be determined and agreed in letters between the competent authorities of the States Parties; or 6. Interest shall be deemed to accrue in a Contracting State if the payer resides in that State. However, where the payer of the interest, whether or not established in a Contracting State, has a permanent establishment in a Contracting State in respect of which the debt in respect of which the interest is paid arose and such interest is borne by that permanent establishment, such interest shall be deemed to have arisen in the State in which the permanent establishment is situated.

(l) under the term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, unless the ship or aircraft is operated exclusively between points in the other Contracting State. On April 29, 1999, the Canadian Parliament passed the Canada Customs and Revenue Agency Act, establishing the Canada Customs and Revenue Agency (now the Canada Revenue Agency). The Canada Revenue Agency is responsible for managing various tax programs and providing economic and social benefits to the citizens of Canada. It also helps manage certain provincial and territorial tax programs. In addition, some provinces have separate tax authorities to manage their provincial tax systems. Keep in mind that once you are outside of Canada for a certain period of time, your provincial health insurance may no longer apply. There are differences between the different provinces, but the key is that you do not have your cake and eat it. Not becoming a resident generally means giving up Canadian health care. Coverage for Canadian citizens is subject to different recovery requirements upon their return, so it is important to ensure adequate health care abroad. 7 Without prejudice to Article 2, this Article shall apply to all taxes levied by a Contracting State.

(b) the terms (including the amount) of the claim differ from those that would have been agreed between the payer and the beneficial owner in the absence of such a relationship, the interest thereon may be taxable in accordance with Article 10(2). Non-residents whose income is attributable to Mexican sources. If a non-resident earns income from sources in Mexico and does not have PE, they are subject to withholding that income. Salaries, royalties, dividends, technical assistance payments, capital gains (i.e. sales of real estate in Mexico), etc. Income from these sources is generally subject to various source tax rates. As explained below, these withholding tax rates may be reduced under the applicable tax treaty. Mexico has concluded double taxation agreements (DTAs) with the following countries: (6) Companies of a Contracting State whose capital is wholly or partly owned or controlled by one or more residents of the other Contracting State may not be subject to any tax or obligation in the first-mentioned State other than taxation and related requirements, to other similar undertakings of the first-mentioned State the capital of which is wholly or partly owned by one or more residents of a third country or is or may be controlled, directly or indirectly, by one or more residents of a third country. (c) Where, under a provision of the Convention, income received by an authority resident in Canada is exempt in Canada, Canada may nevertheless take into account the exempt income when calculating the amount of tax on other income. The agreement with Mexico stipulates that the 15% withholding tax applies to Canada Pension Plans (CPP), Old Age Security (OAS) and Defined Benefit (DB) plans.

I guess that`s the magical 15% tax rate your friend is referring to. 3. For the purposes of this Article, profits, income or profits of a State resident in a Contracting State which may be taxed in the other Contracting State under this Convention shall be deemed to arise from sources in that other State. 2. Nothing in the Convention shall be construed to prevent a Contracting State from levying a tax on amounts included in the income of a resident of that State in respect of a partnership, trust or controlled foreign subsidiary to which the resident is a party. An individual resident may earn income from another country that is subject to tax in that country. The person can offset the foreign income tax paid with the Mexican income tax payable. However, the credit is limited to the lower amount of (i) the amount of foreign tax paid in relation to taxable income in Mexico from foreign sources, and (ii) the amount of Mexican tax equal to that income. In addition, no credit is allowed for foreign taxes levied on income exempt from Mexican tax. DESIRING to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in the Field of Income Tax, (iii) airspace over the territory of the State and all other airspaces for which Mexico has jurisdiction under international law, taxpayers holding shares in assets in Mexico or income from Mexico may have significant reporting obligations, including the following forms: FALSE: There is no such requirement. .