Global

Details

  • Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/8/2013

Mexico - FATCA-like program with European countries 

August 8: Mexico has entered into a “pilot program” for the exchange of tax information with five European countries—France, Germany, Italy, Spain, and the United Kingdom.

Mexico’s finance ministry (Secretaría de Hacienda y Crédito Público) on 31 July 2013 announced that a request to join the program (submitted 11 June 2013) had been accepted and that Mexico will be the first non-European country included in this tax information exchange program.

KPMG observation

Mexico previously entered into an information exchange agreement with the United States under the U.S. Foreign Account Tax Compliance Act (FATCA), for automatically sharing information of their tax-resident investors. These tax information exchange agreements reflect the fact that Mexico is gradually implementing a recommendation of the Organisation for Economic Co-operation and Development (OECD) on international collaboration and coordination to prevent tax evasion.


Tax information exchange pilot program with EU countries

The program allows the exchange of information related to financial income for 2013 including:


  • Bank accounts
  • Dividends
  • Capital gains

Read TaxNewsFlash-Europe: EU - Proposals for expanded automatic exchange of information


Starting 1 January 2015, reports of income or payments subject to the tax information exchange program will also include:


  • Income from employment
  • Directors’ fees
  • Live insurance products
  • Pension
  • Real estate property

Read an August 2013 report (English) (or Spanish) prepared by the KPMG member firm in Mexico: Mexico is accepted in the pilot program of information exchange with five European countries




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