Mexican Tax Change To Boost Bermudian Business

by Amanda Banks, Tax-News.com, London

11 February 2011

A change in Mexico's tax laws will benefit Bermudian entities doing business in the Central American country, particularly those in the insurance sector, says Bermuda's Prime Minister Paula Cox.

"Mexico has made certain modifications to the Miscellaneous Tax Regulations whereby such [entities] will avoid the application of the informative tax return obligation and the application of the 40% withholding tax set forth in the Income Tax Law," Cox said.

While other jurisdictions that have a Tax Information Exchange Agreement with Mexico will receive the same benefit this will particularly strengthen Bermuda’s international business sector.

Bermudians not directly employed in the captive insurance company sector will also benefit from the government's efforts to further strengthen the jurisdiction's international business sector, Cox added.

Delegates from Mexico are expected to visit Bermuda on May 31 when Bermuda hosts the 2011 Organization for Economic Cooperation and Development Global Forum on Transparency and Exchange of Information for tax purposes.

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