Washington (Dec. 2, 2002) -- The Treasury Department announced last week that the U.S. and Mexico have amended and modernized a 10-year-old income tax treaty, according to Tax Analysts.

The treaty, which dates from 1992, has been updated to lower taxes on cross-border dividend payments. It takes into account the operation of both U.S. and Mexican foreign tax credits, and gives Mexico treatment equivalent to the best the United States has negotiated with any other tax treaty partner.

"The new protocol ... reflects the close economic relationship between our two countries," Deputy Treasury Secretary Kenneth Dam told Tax Analysts.

-- Electronic Accountant Newswire staff

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