MEXICO CITY, Dec. 12 (Xinhua) -- Mexico and the Netherlands modified a tax treaty signed in 1993 in a bid to strength cooperation to curb tax evasion, Mexican Treasury and Public Credit Ministry said on Friday.
The new treaty, taking into consideration the development of the fiscal policy in both countries, includes the Single Rate Business Tax, the ministry said.
Besides, the new treaty reduces the general rate of the retention tax from 15 percent to 10 percent, the ministry said, adding that it also prescribes new norms for taxes on income.
The treaty will facilitate the information exchange of the two countries on finance and banking. It will also promote bilateral cooperation on taxation.
Once the treaty enters into force, it will help stimulate investment and strengthen economic and financial ties between Mexico and the Netherlands.
The treaty was signed by Agustin Carstens, Mexican Treasury and Public Credit Minister and Cornelia Minderhoud, the Dutch ambassador to Mexico.