Mexico-Turkey DTA Comes Into Force
Mexico on July 17, 2015, published the text of its agreement with Turkey to avoid double taxation between the two countries and prevent tax evasion.
The double tax agreement (DTA) was signed in 2013 and is valid from July 23, 2015.
Under the agreement, dividends will be subject to a maximum tax rate of five percent if the beneficial owner holds a stake of at least 25 percent in the company paying the dividends. In all other cases the maximum rate is 15 percent.
The tax rate on interest must not exceed 10 percent of the gross amount of interest in cases where the interest is paid to a bank, and 15 percent in all other cases, according to the agreement.
The DTA also provides that the tax on royalties must not exceed 10 percent of the gross amount of the royalties if the beneficial owner is a resident of the other contracting state.
The two countries also agreed to exchange information that is relevant to the DTA or to the administration or enforcement of domestic tax laws in either contracting state.
