The IBFD has received the text of the comprehensive tax treaty between Venezuela and Mexico, signed on 6 February 1997. The treaty was concluded in the Spanish language only.
Under the treaty, the maximum withholding tax rates are:
- 5% on dividends;
- 15% on interest, but reduced rates of 4.95% and 10% apply to certain qualifying interest, and the usual exemptions for interest paid to public bodies, etc. apply; and
- 10% on royalties.
A building site or a construction or installation project constitutes a permanent establishment only if it lasts for more than 9 months. An insurance enterprise of a contracting state, except with regard to reinsurance, is deemed to have a permanent establishment in the other contracting state if it collects premiums in that other state or insures risks situated therein through a person other than a independent agent.
