Copyright 1996
InterAm Database
National Law Center for Inter-American Free Trade


October 3, 1994

Protocol to United States - Mexico tax treaty

TEXT:

More information has become available on the new protocol to the United 
States - Mexico income tax treaty reported in TNS-411. Contrary to the earlier 
report, two separate protocols were signed: one amends the 1992 income tax 
treaty and the other amends the 1989 Tax Information Exchange Agreement 
(TIEA). Both protocols
result from the North American Free Trade Agreement (NAFTA), which came 
into effect on 1 January of this year. The protocol to the TIEA amends Art. 2 
(Taxes Covered) to extend that agreement to taxes imposed by states, 
municipalities and
other political subdivisions and local authorities of the United States and 
Mexico. Art. 4 (Exchange of Information) of the TIEA is amended by the 
protocol to provide that information can be exchanged on matters covered by 
Sec. 3402 of the Right of
Financial Privacy Act in the United States or Art. 117 of the Credit Institutions 
Law in Mexico. The protocol to the income tax treaty makes a similar 
amendment to Art. 27 (Exchange of Information) of that treaty to extend its 
application to the
states, municipalities, and other political subdivisions and local authorities of 
the United States and Mexico, and to authorize the competent authorities to 
exchange information in accordance withthe TIEA.
The protocols are expected to be submitted to the United States Senate Foreign 
Relations Committee this autumn for ratification.