Rada ratifies convention between Ukraine, Mexico to avoid double taxation

The Ukrainian parliament has ratified a convention between the governments of Ukraine and Mexico to avoid double taxation and prevent tax evasion regarding income taxes and property taxes.

A total of 267 out of 361 lawmakers registered in the session hall on Tuesday supported the law.

According to the document, the convention applies to those persons who are residents of one of the two countries that signed the convention.

The convention apples to taxes on income and property that are collected by Ukraine and Mexico or their administrative-territorial units and by local authorities, irrespective of the way they are collected.

Taxes on income and property are taxes collected from the general income, the value of property or elements of income or property, including taxes on incomes from the sale of immovable and movable property.

When it concerns Ukraine, tax on profit of companies and individuals income tax are foreseen, when it concerns Mexico, a federal tax on income and a tax on business are foreseen.

The document says that the convention applies to any identical or similar taxes that will be collected after the signing of the convention.