2023 – 6 Tax Consulting
Executive Branch publishes MLI Decree
On June 19, 2023, the Executive Branch published in the Official Federal Gazette (Diario Oficial de la Federación) the “Decree that publishes the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting executed on November 24, 2016, in Paris, France”. The instrument was deposited by the Mexican Government before the Secretary-General of the Organization for Economic Co-operation and Development (“OECD”) on March 15, 2023.
The Multilateral Convention on the Implementation of Tax Treaty Measures to Prevent Base Erosion and Profit Shifting ("MLI") will entry into force in Mexico on July 1st, 2023, and regarding withholding taxes and remaining taxes, it shall become effective and be applicable as of January 1st, 2024.
The foregoing implies that there will be modifications to the International Tax Treaties currently in force between Mexico and the foreign states that also executed the MLI, if such foreign states have deposited the instrument of ratification before the OECD and had designated its bilateral tax agreement with Mexico as a Covered Tax Agreement.
This publication also contains the List of Reservations and Notifications made by Mexico upon deposit of the instrument of ratification before the OECD.
The measures contained in the MLI, among other objectives, seek to prevent the abuse of Tax Treaties to avoid double taxation, improve conflict resolution, regulate Permanent Establishment rules and to neutralize the use of hybrid schemes.
* * * * *
Mexico City
June 2023
This News Flash contains information of a general nature, and thus it does not address any particular case or facts, and therefore should not be considered applicable in respect of a particular case or under specific circumstances. The information contained herein is accurate as of the date of issuance; however, we make no representation as to the fact that such information be accurate in the future. Accordingly, we recommend that specific advice addressing your particular circumstances be requested.
LEGAL NOTICE
ALL RIGHTS RESERVED ©2023, CHEVEZ, RUIZ, ZAMARRIPA Y CIA, S.C., AVENIDA VASCO DE QUIROGA #2121, 4° PISO, COLONIA PEÑA BLANCA SANTA FE, DELEGACIÓN ÁLVARO OBREGÓN, CIUDAD DE MÉXICO, MÉXICO.
The entire content (publications, trademarks, copyrights, related rights and all of the Intellectual Property) previously shown, is owned by Chevez, Ruiz, Zamarripa y Cia, S.C., same that is protected by the Federal Copyright Law, the Industrial Property Law and the International Treaties in which the Mexican State is member.
Any unauthorized use through any means, known or unknown, whether written, digital or printed, will be punished and prosecuted in accordance with the applicable law. It is prohibited to copy, edit, reproduce, distribute or any other form of use/exploitation, by any means, without the written permission of Chevez, Ruiz, Zamarripa y Cia, S.C.
