Mexican court muddies water with ruling on taxation of cross-border derivative payments

July 11, 2011

A Mexican circuit court recently issued a controversial ruling regarding the application of withholding tax on payments made abroad by a Mexican resident under an equity derivative contract.

The ruling creates significant uncertainty, mainly in the financial sector, but may also affect other types of Mexican-source income obtained by foreign residents doing business in Mexico.

Further details are available from the Ernst & Young ITS in the News article which can be accessed using the link below:

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