Treaty Developments - Japan, Mexico Effective

• The maximum tax in the country of source on dividends paid to a resident of the other country is 5% if the recipient is a company owning at least 25% of the voting shares in the paying company, and an exemption is granted if the shareholdings of the recipient company either satisfy requirements relating to quotation on a stock exchange or are more than 50% owned by individual residents of Japan or Mexico. In other cases, the maximum source-country taxation of dividends is 15%. Mexico does not, however, impose any withholding tax on dividends paid out of fully taxed profits.