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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 21

Elimination of Double Taxation

(1) In case of a resident of Slovakia, double taxation shall be eliminated in the following way:

  • When imposing taxes on its residents, Slovakia may include in the tax base upon which such taxes are imposed the items of income which according to the provisions of this Convention may also be taxed in Mexico, but shall allow as a deduction from the amount of tax computed on such a base an amount equal to the tax paid in Mexico. However, such deduction must not exceed that portion of the income tax of Slovak tax, calculated prior to the deduction, corresponding to the taxable income in Mexico.

(2) In the case of a resident of Mexico, double taxation shall be eliminated in the following way:

In accordance with the provisions and subject to the limitations of the Mexican laws, as may be modified from time to time without affecting its general principle, Mexico shall allow its residents as a credit against the Mexican tax:

  • (a) Slovak tax paid on income arising in Slovakia, in an amount not exceeding the tax payable in Mexico on such income; and
  • (b) in the case of a company owning at least 10 percent of the capital of a company which is a resident of Slovakia and from which the first-mentioned company receives dividends, Slovak tax paid by the distributing company with respect to the profits out of which the dividends are paid.

(3) Where, according to any provisions of this Convention, income derived owned by a resident of a Contracting State is exempt from tax in that State, then that State shall when calculating the amount of tax on the remaining income of such resident, take into account the exempted income.