On 20 February 2015, Turkey published the decree ratifying the pending income tax treaty with Mexico. The treaty, signed 17 December 2013, is the first of its kind between the two countries.
The treaty covers Mexican federal income tax and business flat rate tax, and covers Turkish income tax and corporation tax.
If a company is considered resident in both Contracting States, the competent authorities will determine the company's residence for the purpose of the treaty through mutual agreement. If the authorities cannot reach mutual agreement, the company will not be entitled to the benefits of the treaty.
Both countries apply the credit method for the elimination of double taxation.
The treaty will enter into force 30 days after the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force.