MEXICO Law and Practice Contributed by: Christian Lippert, Gabriela Pellón, Fabiola Jiménez and Cecilia Díaz de Rivera, Galicia Abogados
Information Exchange and Transparency Mexico participates in the OECD’s Common Report- ing Standard (CRS) and exchanges financial informa- tion with numerous jurisdictions. Mexican financial institutions therefore report accounts held by foreign tax residents to the Mexican tax authorities (SAT), which may share such information with the relevant foreign tax authorities. This transparency framework is an important consideration in cross-border estate planning involving Mexican financial assets.
In addition, income generated by Mexican-source assets (such as rental income or dividends) will gen- erally be subject to Mexican withholding tax at the applicable rates. Absence of Estate Tax Treaties Mexico has not entered into bilateral estate or inher- itance tax treaties with other jurisdictions. The Mex- ico–United States Income Tax Treaty, for example, covers income taxes but does not address estate or inheritance taxation. As a result, there is no treaty mechanism specifically designed to eliminate double taxation where foreign jurisdictions impose estate or inheritance taxes.
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