Mexico and China celebrate 20 years of the entry into force of the Agreement to Avoid Double Taxation and Prevent Fiscal Evasion, which was signed on February 12, 2005.
This agreement establishes the scope of application with respect to the taxes covered by both parties. In the case of Mexico, it applies to the Federal income tax; whereas in the case of China, it covers the Individual Income Tax and the Enterprise Income Tax, including those applicable to foreign investment and enterprises.
Since its entry into force, this instrument has contributed to strengthening legal certainty, promoting investment, and facilitating bilateral economic exchange, while establishing mechanisms for cooperation and the exchange of information between the competent authorities to prevent tax evasion.
