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Mexico Signs Tax Information Exchange Accords With Bahamas, Panama

Wednesday, February 24, 2010

Mexico signed agreements to avoid double taxation and prevent fiscal evasion with both Panama and the Bahamas, on the occasion of the Summit of Latin American and Caribbean Unity.

The purpose of the agreements was to promote international cooperation in tax matters through information exchange and verify that in future, the appropriate amounts of tax are paid.

The agreements also establish a 'Mutual Agreement Procedure' for resolving amicably conflicts that could arise from their application and interpretation.

The wording of the agreements conform with OECD standards, and, in the case of the Bahamas Agreement, cover all federal Mexican taxes and Bahamian taxes of every kind and description, including identical or substantially similar taxes imposed added later or replacing existing taxes.

During his speech Mexican President Felipe Calderón said that, with the signing of the Agreement with Panama, Mexico could promote Panama internationally as a country that meets international standards on fiscal matters.

In order to protect the country's financial services and remove its name from the OECD's 'grey list', Panama is working on similar agreements with Italy, Belgium and Spain and has initiated negotiations for more than a dozen agreements.