Tax Reforma 2014 | Securities lending
Tax Bulettin 11/2013
A new tax reform has been approved and will enter into force on January 1st, 2014, among other changes, beginning 2014 residents abroad who obtain gains on the sale of publicly traded shares shall be subject to a 10% withholding tax on the gain obtained. If the vendor is a resident in a country with which Mexico has a double tax treaty, the aforementioned withholding may be reduced or eliminated.
According to the Mexican law, when a lending of securities is made, in general terms, the lending is not treated as a sale provided that the borrower returns the securities to the lender at the latest on the date agreed contractually and in the transaction participates as lender or intermediary a bank or a broker dealer.