Uruguay, Mexico Sign Double Tax Agreement

by Mike Godfrey, Tax-News.com, Washington

24 August 2009

During negotiations held between August 13 and 15, Mexico and Uruguay concluded several agreements aimed at further enhancing trade flows between the two countries, which have already risen substantially following the entry into force of a bilateral free trade agreement in November 2003.

A joint declaration by Uruguayan President Dr Tabaré Vázquez and Mexican President Felipe Calderón said that several agreements were signed at the meetings, including an agreement for the avoidance of double taxation and fiscal evasion with respect to income tax and taxes on assets. The presidents said the agreement would help provide greater legal certainty for investors in both countries, and at the same time prevent tax evasion.

Also signed at the meeting was a Strategic Partnership Agreement, which will help boost existing links between the countries in various spheres, including encouraging dialogue on political, economic and commercial matters as well as coordinating joint efforts to address areas of common interest.

Another agreement on air transport was signed by the two leaders, which will strengthen links between Mexico and Uruguay by permitting more direct air links between both countries. The agreement is expected to increase trade, tourism, business, and cultural flows.

Vázquez and Calderón welcomed current trade levels, remarking on the strategic importance of the free trade agreement between the two countries. Both officials acknowledged the need to examine areas where economic cooperation could be deepened, and barriers to trade removed.

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