Mexico: Tax reform : Capital Gains Tax withholding responsibility
According to recent information received from the market, brokers are expected to be responsible for withholding the 10% Capital Gains Tax (CGT) on on-exchange transactions in Mexican equities.
This is further to our Taxflash LT13106, dated 29 November 2013.
The information is still to be confirmed by the Mexican Tax Authorities through a Rule clarifying the responsibility of the brokers.
Impact on customers
No capital gains tax will be withheld through Clearstream Banking1 on Mexican securities held in Clearstream Banking.
It is the responsibility of the shareholder to take any necessary action to declare their status and obtain an eventual exemption of the CGT, when applicable. Customers are recommended to consult their tax advisors for details of the certification to be provided to the brokers in order to obtain the exemption.
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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