Mexico along with 30 additional countries signed the Multilateral Agreement Competent Authority (MCAA) which aims to promote transparency and exchange of information on international tax matters.
Under this multilateral agreement, the information will be exchanged between tax administrators so they can have a simple picture of the key indicators of multinational businesses.
With reports of tax administrations from countries where a company operates, it will be possible to obtain annually aggregate accounts, starting with 2016. In addition, the information obtained will include which entities are doing business in a particular jurisdiction and what are the businesses activities in which they engage. The first exchanges will begin in 2017-2018 on data collected in 2016.
It was also noted that it is a necessary tool to ensure that companies pay allocated taxes and this would not have been possible without the BEPS Project.
This project, drawn up by the OECD and the G20, sets 15 key actions to reform the international tax legal framework to ensure that profits are reported where economic activities are carried out and value is created.
In addition to Mexico, the other signatory countries are Australia, Austria, Belgium, Chile, Costa Rica, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Malaysia, Netherlands, Nigeria, Norway, Poland, Portugal, Slovakia, Slovenia, South Africa, Spain, Switzerland, Sweden and the United Kingdom.