International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Mexico: Sworn statement for the applicability of tax treaty benefits



David Cuellar

Nidia Sanchez

Derived from the approval of 2014's Mexican Tax reform package, various amendments to the Mexican tax laws have been enacted. One of them is the inclusion of faculties to the Mexican Tax Authorities with respect to the applicability of tax treaty benefits when transactions are performed between related parties. In this regard, the Mexican Tax Authorities are now entitled to request a foreign resident to certify the existence of international juridical double taxation through the issuance of a sworn statement. Such statement should be signed by the legal representative of the foreign resident intending to apply treaty benefits, and should attest that income is being subject to taxation in the country of residence of the recipient. The statement should also mention the applicable regulations and provide supporting documentation.

Note that Mexican legislation does not establish what double taxation means, but in general terms, the OECD Model Tax Convention Commentaries on articles 23-A and 23-B establishes that juridical double taxation should be understood where the same income (or capital) is taxable in the hands of the same person by more than one country.

Because of the fact that it may be difficult for certain foreign taxpayers to obtain such kind of statement derived from the applicable foreign regulations (territorial tax regimes) or from a specific kind of transaction (a tax free reorganisation), on December 30 2013, the Mexican tax authorities published in the Official Gazette the Miscellaneous Tax Regulations corresponding to the fiscal year 2014, which contain a rule addressing such situation. In this regard, the rule establishes that the Mexican tax authorities would not request the issuance of the previously mentioned sworn statement when:

  • The foreign resident is a resident in a country with a territorial tax system.

  • The foreign resident is not subject to taxation in its country of residence by virtue of the application of the exemption method foreseen in any tax treaty signed with Mexico.

  • In the case of the transfer (alienation) of shares, if such transfer is carried out under the rules of a corporate restructure as established in any tax treaty signed by Mexico.

As it can be seen in the case at hand, it is important to review in detail the new rules regarding the deductibility for payments abroad contained in the 2014 Tax Reform and other miscellaneous regulations to fulfill all the requirements regarding treaty application.

David Cuellar ( and Nidia Sanchez (


Tel: +52 55 5263 5816

Fax: +52 55 5263 6010


more across site & bottom lb ros

More from across our site

ITR’s latest quarterly PDF is going live today, leading on the EU’s BEFIT initiative and wider tax reforms in the bloc.
COVID-19 and an overworked HMRC may have created the ‘perfect storm’ for reduced prosecutions, according to tax professionals.
Participants in the consultation on the UN secretary-general’s report into international tax cooperation are divided – some believe UN-led structures are the way forward, while others want to improve existing ones. Ralph Cunningham reports.
The German government unveils plans to implement pillar two, while EY is reportedly still divided over ‘Project Everest’.
With the M&A market booming, ITR has partnered with correspondents from firms around the globe to provide a guide to the deal structures being employed and tax authorities' responses.
Xing Hu, partner at Hui Ye Law Firm in Shanghai, looks at the implications of the US Uyghur Forced Labor Protection Act for TP comparability analysis of China.
Karl Berlin talks to Josh White about meeting the Fair Tax standard, the changing burden of country-by-country reporting, and how windfall taxes may hit renewable energy.
Sandy Markwick, head of the Tax Director Network (TDN) at Winmark, looks at the challenges of global mobility for tax management.
Taxpayers should look beyond the headline criteria of the simplification regime to ensure that their arrangements meet the arm’s-length standard, say Alejandro Ces and Mark Seddon of the EY New Zealand transfer pricing team.
In a recent webinar hosted by law firms Greenberg Traurig and Clayton Utz, officials at the IRS and ATO outlined their visions for 2023.