First Look: US and Mexico renew of competent authority agreement on Maquiladoras

The US IRS on November 16 announced that the US and Mexico have agreed to renew their transfer pricing framework for US multinational enterprises that have maquiladora operations in Mexico.

The agreement allows a US taxpayer to avoid double taxation on contract manufacturing and assembly functions performed by a maquiladora if the Mexican taxpayer enters into a unilateral advance pricing agreement with the Mexican tax authority according to the terms of the US-Mexico agreement.

MNE Tax expects to publish an article written by an expert in this area shortly.

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