The first-time income tax treaty and protocol between Mexico and Indonesia, signed on 6 September 2002, entered into force on 28 October 2004. The treaty generally applies from 1 January 2005.

The maximum rates of withholding tax are:

The treaty permits the states to levy a branch profits tax of up to 10%.

Both states provide for the credit method to avoid double taxation. In respect of dividends received by a Mexican company owning at least 10% of the capital of the Indonesian paying company, Mexico also grants a credit for the …