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October 14, 2022

Mexico ratifies MLI | Timeline for entry into force will be triggered once instrument of ratification is deposited in the OECD

  • Following the approval of the MLI in the Mexican Senate’s joint committee of the Ministries of Foreign Affairs and Treasury on 6 October 2022, the Senate fast-tracked the ratification process through a vote in a plenary session on 12 October.

  • The ratification process of an international instrument does not require approval by both Chambers of Congress, so the only pending step is publication in the Official Gazette and subsequent deposit in the Organisation for Economic Co-operation and Development (OECD).

On 12 October 2022, during its ordinary session, the Mexican Senate approved the Multilateral Convention to implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) in the terms that it was approved by the joint committee of the Ministries of Foreign Affairs and Treasury on 6 October (with the updated list of reservations and notifications in respect to those made in 2017 at the time of signature). Following Senate approval, the MLI has been sent to the President for signature and publication in the Federal Official Gazette, and subsequent deposit with the OECD.

As mentioned in EY Global Tax Alert, Mexico takes first steps to ratify MLI, dated 10 October 2022, the MLI will enter in force on the first day of the month following the expiration of a period of the three calendar months beginning on the date of its deposit. However, the MLI will enter into effect in Mexico with respect to taxes withheld at source at the beginning of the calendar year after the date of entering into force, such that the earliest date for this would be 1 January 2024.

Several implications for multinational companies may arise once the MLI enters into force for Mexico, and a case-by case analysis should be undertaken to map the impact of the MLI in cross-border transactions.


For additional information with respect to this Alert, please contact the following:

Mancera, S.C., Mexico City

Ernst & Young, LLP, Latin America Business Center, New York

Ernst & Young LLP, Latin America Business Center, Chicago

Ernst & Young LLP, Latin America Business Center, Miami

Ernst & Young, LLP, Latin America Business Center, San Diego

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin America Tax Desk, Japan & Asia Pacific


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