Thursday, November 1, 2007

Mexican Flat Tax Creditability Continued

If the conclusion is that the United States, for the purposes of its federal income tax, determines that the IETU is not an income tax creditable to the United States parent company, then IETU tax paid in Mexico will not be creditable in the United States, thus causing double taxation at the international level. Mexico's Secretary of Finance, Agustin Carstens, stated at the beginning of October that the Mexican government had reached an agreement with various other countries with respect to whether or not the IETU will be creditable, including: the United Kingdom, Italy, India, South Africa and the Bahamas.

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