Mexico Approves Tax Treaty with Malta

On April 29th, 2014, the Mexican Senate approved the income tax treaty between Mexico and Malta. The treaty was signed in December 2012 and ratified by Malta on August 5th, 2013. It includes the following withholding rates:

• Dividends - 0%
• Interest - 5% when paid for a bank loan, otherwise 10%
• Royalties - 10%

The treaty is the first of its kind between the two countries and will enter into force 30 days after the ratification instruments are exchanged. The provisions of the treaty will apply …