February 2, 2001 |
By
Keith Martin in Washington, DC
Mexican President Vicente Fox said he will seek an increase in withholding rates for interest paid to foreign banks. The nominal withholding rate is currently 15%. However, most actual withholding is at 4.9%. Fox wants to impose a 10% rate. This will affect interest paid to banks lending from Belgium, Canada, France, Germany and Japan. Banks in other countries should still qualify for the 4.9% rate under tax treaties between Mexico and their home countries.
