On October 19, in Mexico City, the Estonian Foreign Minister Urmas Paet and Mexico’s Minister of Finance José Antonio Meade Kuribreña signed a double taxation agreement (DTA) between their two countries.
Paet said that the DTA would, for Estonia, “strengthen economic ties with one of the world’s leading industrial nations, chairman of the G20 and home to over a hundred million people.”
The agreement sets out the allocation of taxing rights between the two jurisdictions with regard, for example, to corporate profits, capital gains, pensions, and income received by artists and students. It also provides for tax relief on different types of passive income, the withholding tax on both interest and royalties, for example, being capped at 10%.
The DTA also incorporates the internationally-agreed standard for the exchange of information for tax purposes, giving both jurisdictions' tax authorities a greater ability to exchange taxpayer information. It also provides that a tax authority cannot refuse to provide information solely because it does not require the information for its own domestic purposes, or that it is held by banks or other financial institutions.
Paet said that the DTA would, for Estonia, “strengthen economic ties with one of the world’s leading industrial nations, chairman of the G20 and home to over a hundred million people.”
The agreement sets out the allocation of taxing rights between the two jurisdictions with regard, for example, to corporate profits, capital gains, pensions, and income received by artists and students. It also provides for tax relief on different types of passive income, the withholding tax on both interest and royalties, for example, being capped at 10%.
The DTA also incorporates the internationally-agreed standard for the exchange of information for tax purposes, giving both jurisdictions' tax authorities a greater ability to exchange taxpayer information. It also provides that a tax authority cannot refuse to provide information solely because it does not require the information for its own domestic purposes, or that it is held by banks or other financial institutions.
