India today signed an agreement with Mexico to avoid double taxation (DBAA) to avoid double taxation and prevent income tax evasion. This agreement comes into force at a fortuitous date. The agreement also aims to promote economic cooperation between the two countries. The agreement was signed by Shri P. Chidambaram, The Union`s Minister of Finance, on behalf of the Indian government, and Patricia Espinosa Cantellano, Mexico`s Minister of Foreign Affairs, on behalf of the Mexican Government of the United States. A resident may collect income from another taxable country in that country. The person can credit the foreign income tax paid by the Mexican income tax obligation. However, the credit is equal to the lower amount of (i) the amount of foreign tax paid for income from foreign sources taxable in Mexico and (ii) the amount of Mexican tax corresponding to that income. In addition, no credit is allowed for foreign taxes levied on income exempt from Mexican tax.
The DBAA between India and Mexico covers income tax, including potential increases, and, in the case of Mexico, federal income tax. Agreement between the Government of the Russian Federation and the Government of the Republic of Albania to avoid double taxation with regard to income and capital taxes Mexico has entered into a double taxation agreement (DBA) with the following countries: Remember, the list of DBAA countries will continue to change, based on agreements that are often amended. We advise you to explore your bank for more details. Please note that the list of countries with which we have a DBAA is constantly evolving, depending on the government`s policy that changes from time to time. Therefore, you should check the new list each time to determine if any changes have been made or influenced. We advise you to check the list regularly. Indeed, India is currently reviewing its DBAA agreements with many countries, which could soon be amended. India has an agreement on the prevention of double taxation (DBAA) with 88 countries, but 85 are currently in force. The DBAA Treaty was signed to avoid double taxation of these assets declared in two different countries. The DBAA provides for the taxation of dividends, interest, royalties and royalties for technical services, both in the country of residence and in the country of origin. On January 24, 2008, the Indian cabinet approved the first income tax agreement and protocol between India and Mexico, signed on September 10, 2007.
The contract was concluded in Hindi, Spanish and English, with the same authenticity. However, in the event of discrepancies, the English text is necessary. The treaty generally follows the model convention of the United Nations (2001). These ADAs aim to make a country attractive for investment purposes by facilitating double taxation.