Finland - Mexico Treaty Development - Details

The IBFD has received the English text of the income tax treaty of 12 February 1997 between Finland and Mexico. The treaty was concluded in the Finnish, Spanish and English languages; in the case of divergence of interpretation, the English text prevails. The treaty generally follows the OECD Model Convention.

Under the treaty, there is no withholding tax on dividends. The maximum general withholding tax rate on interest is 15%. A 10% rate applies to (a) interest paid by or to banks, (b) interest from bonds or securities that are regularly and substantially traded on a recognized securities market, and (c) interest related to the sale on credit of machinery and equipment. The usual exemptions for interest paid to public bodies, etc. apply.