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Luxembourg added back to Mexican White List - 23/11/2012


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For many years, Mexican tax legislation has published a list of foreign countries who comply with the “Comprehensive Agreement on Exchange of Information” (Acuerdo Amplio de Intercambio de Informaciones), known as the “White List”, and which is found in the Resolución Miscelanea Fiscal. Omission from the White List carries a number of significant tax disadvantages for residents of a non-listed country investing in Mexico.

Luxembourg consistently appeared on the White List up until January 2011, when the Mexican tax authorities deemed the Grand Duchy to be not in compliance with an effective exchange of information.

The removal of Luxembourg came in spite of the two countries’ strong and enduring diplomatic relations, during which the Luxembourg - Mexico double tax treaty was concluded in 2001 (and effective  1 January 2002).

The recently signed Protocol to the tax treaty (effective 1 January 2012) introduced an “Exchange of Information” procedure which is in line with Article 26 of the OECD Model Convention, and prompted a change from Mexican tax authorities.  Cuarta Resolución de Modificaciones a la resolución miscelanea para 2012, which was issued 12 November 2012, reinstated Luxembourg to the White List with retroactive effect as of 1 January 2012 (thereby aligning it to the date of the Protocol).

This is further proof of the strong relationship maintained between Luxembourg and Mexico, which was reinforced by the recent visit of H.E. Minister Luc Frieden to Mexico City last October. The re-addition of Luxembourg to the White List is of great significance to companies looking to invest or increase their investment in Mexico through a European Luxembourg platform.

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