Mexico - Germany Tax Treaty

Unterzeichnete Endfassung

Agreement

between

The Federal Republic of Germany

and

The United Mexican States

for the Avoidance of Double Taxation and of Tax Evasion with

respect to Taxes on Income and on Capital

The Federal Republic of Germany

and

The United Mexican States

Desiring to promote their mutual economic relations by removing fiscal obstacles and to

strengthen their cooperation in tax matters,

Have agreed as follows: Article 1 Persons Covered This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 Taxes Covered (1) This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or a political subdivision or local authority thereof, irrespective of the manner

in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed on total income,

on total capital, or on elements of income 0r of capital, including taxes on gains from the

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alienation of movable or immovable property, taxes on the total amount of wages or salaries paid

by enterprises as well as taxes on capital appreciation.

(3) The existing taxes to which this Agreement shall apply are in particular:

(a) in the Federal Republic of Germany:

the income tax (Einkommensteuer);

the corporation tax (Korperschaftsteuer); the trade tax (Gewerbesteuer), and

the capital tax (Vermogensteuer)

including the supplements levied thereon

(hereinafter referred to as ”German tax”);

(b) in the United Mexican States:

the federal income tax (el impuesto sobre la renta federal), and

the business flat rate tax (el impuesto empresarial a tasa finica)

(hereinafter referred to as ”Mexican tax”). (4) The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The

competent authorities of the Contracting States shall notify each other of any significant changes

that have been made in their respective taxation laws.

Article 3

General Definitions

(1) For the purposes of this Agreement, unless the context otherwise requires:

b)

d)

e)

g)

h)

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the term “the Federal Republic of Germany” means the territory of the Federal Republic of Germany, as well as the area of the sea—bed, its subsoil and the superjacent water column adjacent to the territorial sea, insofar as the Federal Republic of Germany exercises there sovereign rights and jurisdiction in conformity with international law and its national legislation for the purpose of exploring, exploiting, conserving and managing the living and

non—living natural resources;

the term “the United Mexican States”, when used in a geographical sense, means the territory of the United Mexican States as defined in its Constitution, including any area beyond its territorial sea where the United Mexican States may exercise its sovereign rights of exploration and exploitation of the natural resources of the seabed, sub—soil and the

superjacent waters, in accordance with international law;

the terms “a Contracting State” and “the other Contracting State” mean the Federal

Republic of Germany or the United Mexican States, as the context requires;

the term ”person” includes an individual, a company and any other body of persons;

the term ”company" means any body corporate or any entity that is treated as a body

corporate for tax purposes;

the terms ”enterprise of a Contracting State” and ”enterprise of the other Contracting State” 1nean respectively an enterprise carried on by a resident of a Contracting State and an

enterprise carried on by a resident of the other Contracting State; the term ”international traffic" means any transport by a ship or aircraft operated by an enterprise that has its place of effective management in a Contracting State, except when

the ship or aircraft is operated solely between places in the other Contracting State;

the term ”national” means:

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aa) in respect of the Federal Republic of Germany

any German within the meaning of the Basic Law for the Federal Republic of Germany and any legal person, partnership and association deriving its status as such from the

laws in force in the Federal Republic of Germany;

bb) in respect of the United Mexican States

any individual possessing the Mexican nationality according to the provisions of Article 30 of the Political Constitution of the United Mexican States, and any legal person, partnership or association deriving its status as such from the laws in force in the United

Mexican States;

i) the term ”competent authority” means:

aa) in the case of the Federal Republic of Germany the Federal Ministry of Finance or the

agency to which it has delegated its powers;

bb) in the case of the United Mexican States, the Ministry of Finance and Public Credit.

(2) As regards the application of the Agreement at any time by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term

under other laws of that State.

Article 4

Resident

(1) For the purposes of this Agreement, the term ”resident of a Contracting State” means any

person who, under the laws of that State, is liable to tax therein by reason of his domicile,

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residence, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that

State or capital situated therein.

(2) Where by reason of the provisions of paragraph 1, an individual is a resident of both

Contracting States, then his status shall be determined as follows:

a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations

are closer (centre of vital interests);

b) if the State in which he has his centre of vital interests cannot be determined or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only

of the State in which he has an habitual abode;

c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a

resident only of the State of which he is a national;

d) if he is a national of both States or of neither of them, the competent authorities of the

Contracting States shall settle the question by mutual agreement.

(3) Where by reason of the provisions of paragraph 1 a person other than an individual is a resi— dent of both Contracting States, the competent authorities of the Contracting States shall by mu— tual agreement endeavour to settle its status and to determine the application of the Agreement. Insofar as no such agreement has been reached, such person shall be deemed not to be a resident

of either Contracting State for the purposes of this Agreement.

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Article 5

Permanent Establishment

(1) For the purposes of this Agreement, the term ”permanent establishment” means a fixed place

of business through which the business of an enterprise is wholly or partly carried on.

(2) The term ”permanent establishment” includes especially:

a) b) C) d) e) f)

a place of management; a branch;

an office;

a factory;

a workshop, and

a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

(3) A building site or construction or installation project constitutes a permanent establishment

only if it lasts more than six months.

(4) Notwithstanding the preceding provisions of this Article, the term ”permanent establishment”

shall be deemed not to include:

a)

b)

C)

d)

the use of facilities solely for the purpose of storage, display or delivery of goods or

merchandise belonging to the enterprise;

the maintenance of a stock of goods or merchandise belonging to the enterprise solely for

the purpose of storage, display or delivery;

the maintenance of a stock of goods or merchandise belonging to the enterprise solely for

the purpose of processing by another enterprise;

the maintenance of a fixed place of business solely for the purpose of purchasing goods or

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merchandise or of collecting information, for the enterprise;

e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the

enterprise, any other activity of a preparatory or auxiliary character;

f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub—paragraphs (a) to (e), provided that the overall activity of the fixed place

of business resulting from this combination is of a preparatory or auxiliary character.

(5) Notwithstanding the provisions of paragraphs 1 and 2, where a person — other than an agent of an independent status to whom paragraph 7 applies — is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under

the provisions of that paragraph.

(6) Notwithstanding the foregoing provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent

status to whom paragraph 7 applies.

(7) An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary

course of their business.

(8) The fact that a company which is a resident of a Contracting State controls or is controlled by

a company which is a resident of the other Contracting State, or which carries on business in that

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other State (whether through a permanent establishment or otherwise), shall not of itself

constitute either company a permanent establishment of the other.

Article 6

Income from lininovable Property

(1) Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that

other State.

(2) The term ”i1n1novable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft

shall not be regarded as immovable property.

(3) The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or

use in any other form of immovable property.

(4) The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of

independent personal services.

Article 7

Business Profits

(1) The profits of an enterprise of a Contracting State shall be taxable only in that State unless the

enterprise carries on business in the other Contracting State through a permanent establishment

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situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent

establishment.

(2) Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the

enterprise of which it is a permanent establishment.

(3) In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent

establishment is situated or elsewhere.

(4) Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the

principles contained in this Article.

(5) No profits shall be attributed to a permanent establishment by reason of the mere purchase by

that permanent establishment of goods or merchandise for the enterprise. (6) For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and

sufficient reason to the contrary.

(7) Where profits include items of income which are dealt with separately in other Articles of this

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Agreement, then the provisions of those Articles shall not be affected by the provisions of this

Article.

Article 8 Shipping and Air Transport

(1) Profits from the operation of ships or aircraft in international traffic shall be taxable only in

the Contracting State in which the place of effective management of the enterprise is situated.

(2) For the purposes of this Article the terms ”profits from the operation of ships or aircraft in

international traffic" shall include profits from

a) the occasional rental of ships or aircraft on a bare—boat basis and

b) the use or rental of containers (including trailers and ancillary equipment used for

transporting the containers), if these activities pertain to the operation of ships or aircraft in international traffic. (3) If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a

resident.

(4) The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a

joint business or an international operating agency.

Article 9

Associated Enterprises

(1) Where:

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a) an enterprise of a Contracting State participates directly or indirectly in the management,

control or capital of an enterprise of the other Contracting State, or

b) the same persons participate directly or indirectly in the management, control or capital of

an enterprise of a Contracting State and an enterprise of the other Contracting State,

and in either case conditions are made or irnposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in

the profits of that enterprise and taxed accordingly.

(2) Where a Contracting State includes in the profits of an enterprise of that State, and taxes accordingly, profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first—Inentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall, in accordance with paragraph 2 of Article 25, make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the

Contracting States shall if necessary consult each other.

Article 10 Dividends

(l) Dividends paid by a company which is a resident of a Contracting State to a resident of the

other Contracting State may be taxed in that other State.

(2) However, such dividends may also be taxed in the Contracting State of which the company

paying the dividends is a resident and according to the laws of that State but, if the beneficial

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owner of the dividends is a resident of the other Contracting State, the tax so charged shall not

exceed:

a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company

paying the dividends;

b) 15 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode of

application of these limitations.

This paragraph shall not affect the taxation of the company in respect of the profits out of which

the dividends are paid.

(3) The term ”dividends” as used in this Article 1neans income from shares, ”jouissance” shares or ”jouissance” rights, mining shares, founders‘ shares or other income which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company

making the distribution is a resident.

(4) The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or a fixed base. In such case the provisions of

Article 7 or Article 14, as the case may be, shall apply.

(5) Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the

company, except insofar as such dividends are paid to a resident of that other State or insofar as

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the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company‘s undistributed profits to a tax on the company‘s undistributed profits, even if the dividends paid or the

undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11

Interest

(1) Interest arising in a Contracting State and paid to a resident of the other Contracting State may

be taxed in that other State.

(2) However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed:

a) 5 per cent of the gross amount of the interest from loans granted by a bank;

b) 10 per cent of the gross amount of the interest in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode of

application of these limitations.

(3) Notwithstanding the provisions of paragraph 2, interest referred to in paragraph 1 shall be

taxable only in the Contracting State in which the beneficial owner is a resident if:

a) the beneficial owner is a Contracting State, the Banco de Mexico or the Deutsche

Bundesbank;

b) the interest is paid by any of the entities mentioned in sub—paragraph a);

c) the interest arises in the Federal Republic of Germany and is paid in respect of a loan

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granted, guaranteed or insured by Banco de Mexico, Banco Nacional de Comercio Exterior, S.N.C., Nacional Financiera, S.N.C., or Banco Nacional de Obras y Servicios Publicos, S.N.C., or by any other institution, as may be agreed from time to time between the

competent authorities of the Contracting States;

d) the interest arises in the United Mexican States and is paid in respect of a loan granted, guaranteed or insured by the Federal Republic of Germany or is paid to the Kreditanstalt fur Wiederaufbau or the Deutsche Investitions— und Entwicklungsgesellschaft, or by any other institution, as may be agreed from time to time between the competent authorities of the

Contracting States.

(4) The term ”interest” as used in this Article means income from debt—clai1ns of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures as well as all other income that is treated as income from money lent by the laws of the Contracting State in which the income arises. However, the term ”interest” does not

include incorne dealt with in Article 10.

(5) The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the debt— claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may

be, shall apply.

(6) Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection

with which the indebtedness on which the interest is paid was incurred, and such interest is borne

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by such permanent establishment or a fixed base, then such interest shall be deemed to arise in

the State in which the permanent establishment or fixed base is situated.

(7) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt—clai1n for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last—1nentioned a1nount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other

provisions of this Agreement.

Article 12 Royalties

(l) Royalties arising in a Contracting State and paid to a resident of the other Contracting State

may be taxed in that other State.

(2) However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle

the mode of application of this limitation.

(3) The term ”royalties” as used in this Article 1neans payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph filins, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience. The term ”royalties” also includes gains derived from the alienation of any such right or property

which are contingent on the productivity or use thereof. The term “royalties” shall also include

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payments of any kind for the use or the right to use a person’s name, picture or any other similar personality rights and on payments received as consideration for the registration of entertainers‘

or sportspersons‘ performances by radio or television.

(4) The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may

be, shall apply.

(5) Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or a fixed base, then such royalties shall be deemed to arise in the

Contracting State in which the permanent establishment or a fixed base is situated.

(6) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last—1nentioned a1nount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due

regard being had to the other provisions of this Agreement.

Article 13 Capital Gains

(l) Gains derived by a resident of a Contracting State from the alienation of immovable property

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referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

(2) Gains derived by a resident of a Contracting State from the alienation of shares and similar rights deriving more than 50 per cent of their value directly or indirectly from immovable

property situated in the other Contracting State may be taxed in that other State.

(3) In addition to gains taxable in accordance with the provisions of the preceding paragraphs of this Article, gains derived by a resident of a Contracting State from the alienation of stock, participation, or other rights in the capital of a company which is a resident of the other

Contracting State may be taxed in that other Contracting State.

(4) Gains from the alienation of Inovable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or of Inovable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the

whole enterprise) or of such fixed base, may be taxed in that other State.

(5) Gains from the alienation of ships or aircraft operated in international traffic or 1novable property pertaining to the operation of such ships or aircraft, shall be taxable only in the

Contracting State in which the place of effective management of the enterprise is situated.

(6) Subject to the provisions of Article 12, gains from the alienation of any property other than that referred to in paragraphs 1 to 5, shall be taxable only in the Contracting State of which the

alienator is a resident.

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Article 14

Independent Personal Services

(1) Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State, except in the

following circumstances, when such income may also be taxed in the other Contracting State:

a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that

fixed base may be taxed in that other State; or

b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any 12—month period commencing or ending in the calendar year concerned; in that case, only so much of the income as is derived from his activities

performed in that other State may be taxed in that other State.

(2) The term ”professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, dentists,

lawyers, engineers, architects and accountants.

Article 15

Income from Employment

(1) Subject to the provisions of Articles 16 to 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is

so exercised, such remuneration as is derived therefrom may be taxed in that other State.

(2) Notwithstanding the provisions of paragraph 1, re1nuneration derived by a resident of a

Contracting State in respect of an employment exercised in the other Contracting State shall be

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taxable only in the first—Inentioned State if:

a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12—month period commencing or ending in the fiscal year

concerned, and

b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other

State, and

c) the remuneration is not borne by a permanent establishment or fixed base which the

employer has in the other State.

(3) The provisions of paragraph 2 shall not apply to remuneration for employment within the

framework of professional hiring out of labour.

(4) Notwithstanding the preceding provisions of this Article, re1nuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise which

operates the ship or aircraft is situated.

Article 16

Directors‘ Fees

Directors‘ fees and similar remuneration derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board and, in the case of the United Mexican States in his capacity as ”ad1ninistrador” (sole administrator) or ”cornisario” (overseer)

of a company, which is a resident of the other Contracting State may be taxed in that other State.

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Article 17

Artistes and Sportspersons

(1) Notwithstanding the provisions of Articles 7, l4 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other

Contracting State, may be taxed in that other State.

(2) Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the provisions of Articles 7, l4 and 15, be taxed in the

Contracting State in which the activities of the entertainer or sportsperson are exercised.

(3) Paragraphs 1 and 2 shall not apply to income accruing from the exercise of activities by artistes or sportspersons in a Contracting State where the visit to that State is financed entirely or mainly from public funds of the other State, a political subdivision or a local authority thereof. In such a case the income may be taxed only in the Contracting State of which the individual is a

resident.

Article 18

Pensions, Annuities and Similar Payments

(1) Subject to the provisions of paragraph 2 of Article 19, pensions and similar payments or annuities paid to a resident of a Contracting State from the other Contracting State shall only be

taxable in the first—Inentioned State.

(2) Notwithstanding the provisions of paragraph 1, payments received by an individual being a resident of a Contracting State from the statutory social insurance of the other Contracting State

shall be taxable only in that other State.

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(3) Notwithstanding the provisions of paragraph 1, recurrent or non—recurrent payments made by one of the Contracting States or a political subdivision thereof to a person resident in the other Contracting State as compensation for political persecution or for an injury or damage sustained as a result of war (including restitution payments) or of military or civil alternative service or of a

crime, vaccination or a similar event shall be taxable only in the first—Inentioned State.

(4) The term ”annuities” 1neans certain a1nounts payable periodically at stated times, for life or for a specified or ascertainable period of time, under an obligation to make the payments in return

for adequate and full consideration in money or money‘s worth.

Article 19

Government Service

(1)

a) Salaries, wages and other similar re1nuneration, other than a pension, paid by a Contracting State, a political subdivision or a local authority thereof or some other legal entity under public law of that State to an individual in respect of services rendered to that State, political subdivision or local authority or some other legal entity under public law shall be

taxable only in that State.

b) However, such salaries, wages and other remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and if the individual is a resident

of that State who:

aa) is a national of that State, or bb) did not become a resident of that State solely for the purpose of rendering the

services.

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(2)

a) Any pension paid by, or out of funds created by, a Contracting State, a political subdivision or a local authority thereof or some other legal entity under public law of that State to an individual in respect of services rendered to that State, political subdivision or local

authority or some other legal entity under public law shall be taxable only in that State.

b) However, such pension shall be taxable only in the other Contracting State if the individual

is a resident of, and a national of, that State.

(3) The provisions of Articles l5, l6, l7, and 18 shall apply to salaries, wages and other similar remuneration, and to pensions in respect of services rendered in connection with a business carried on by a Contracting State, a political subdivision or a local authority thereof or some other

legal entity under public law of that State.

(4) The provisions of paragraph 1 shall likewise apply in respect of re1nuneration paid, under a development assistance programme of a Contracting State, a political subdivision or a local authority thereof, out of funds exclusively supplied by that State, political subdivision or local authority, to a specialist or volunteer seconded to the other Contracting State with the consent of

that other State.

Article 20

Visiting Professors, Teachers and Students

(1) An individual who visits a Contracting State at the invitation of that State or of a university, college, school, museum or other cultural institution of that State or under an official programme of cultural exchange for a period not exceeding two years solely for the purpose of teaching, giving lectures or carrying out research at such institution and who is, or was immediately before

that visit, a resident of the other Contracting State shall be exempt from tax in the first—Inentioned

-24-

State on his remuneration for such activity, provided that such re1nuneration is derived by him

from outside that State.

(2) Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first— mentioned State solely for the purpose of his education or training receives for the purpose of his 1naintenance, education or training shall not be taxed in that State, provided that such payments

arise from sources outside that State.

Article 21

Other Income

(1) Items of income of a resident of a Contracting State not explicitly dealt with in the foregoing

Articles of this Agreement shall be taxable only in that State.

(2) Notwithstanding the provisions of paragraph 1, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Agreement and arising in the other

Contracting State may be taxed in that other State, in accordance with the laws of that other State.

Article 22 Capital

(1) Capital represented by immovable property referred to in Article 6, owned by a resident of a

Contracting State and situated in the other Contracting State, may be taxed in that other State.

(2) Capital represented by 1novable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by

Inovable property pertaining to a fixed base available to a resident of a Contracting State in the

-25-

other Contracting State for the purpose of performing independent personal services, may be

taxed in that other State.

(3) Capital represented by ships and aircraft operated in international traffic, and by 1novable property pertaining to the operation of such ships and aircraft, shall be taxable only in the

Contracting State in which the place of effective management of the enterprise is situated.

(4) All other elements of capital of a resident of a Contracting State shall be taxable only in that

State.

Article 23

Elimination of Double Taxation in the State of Residence

(1) Tax shall be determined in the case of a resident of the Federal Republic of Germany as

follows:

a) Unless foreign tax credit is to be allowed under sub—paragraph b), there shall be exempted from the assessment basis of the German tax any item of income arising in the United Mexican States and any item of capital situated within the United Mexican States which,

according to this Agreement, may be taxed in the United Mexican States.

In the case of items of income from dividends the preceding provision shall apply only to such dividends as are paid to a company (not including partnerships) being a resident of the Federal Republic of Germany by a company being a resident of the United Mexican States at least 10 per cent of the capital of which is owned directly by the German company and which were not deducted when determining the profits of the company distributing these dividends.

There shall be exempted from the assessment basis of the taxes on capital any shareholding

the dividends of which if paid, would be exempted, according to the foregoing sentences.

b)

C)

—26—

Subject to the provisions of German tax law regarding credit for foreign tax, there shall be allowed as a credit against German tax on income payable in respect of the following items of income the Mexican tax paid under the laws of the United Mexican States and in

accordance with this Agreement:

aa) dividends not dealt with in sub—paragraph a);

bb) interest;

cc) royalties;

dd) items of income that may be taxed in the United Mexican States according to

paragraphs 2 and 3 of Article 13;

ee) items of income that may be taxed in the United Mexican States according to

paragraph 3 of Article 15;

ff) directors‘ fees;

gg) items of income that may be taxed according to Article 17;

hh) incorne referred to in paragraph 2 of Article 21.

The provisions of sub—paragraph b) shall apply instead of the provisions of sub—paragraph a) to items of income as defined in Articles 7 and 10 and to the assets from which such income is derived if the resident of the Federal Republic of Germany does not prove that the gross income of the permanent establishment in the business year in which the profit has been realised or of the company resident in the United Mexican States in the business year for which the dividends were paid was derived exclusively or almost exclusively from activities within the meaning of nos. 1 to 6 of paragraph 1 of section 8 of the German Law

on External Tax Relations (Aussensteuergesetz); the same shall apply to immovable

-27-

property used by a permanent establishment and to income from this immovable property of the permanent establishment (paragraph 4 of Article 6) and to profits from the alienation of such immovable property (paragraph 1 of Article 13) and of the movable property forming part of the business property of the permanent establishment (paragraph 4 of

Article 13).

d) The Federal Republic of Germany, however, retains the right to take into account in the determination of its rate of tax the items of income and capital, which are under the

provisions of this Agreement exempted from German tax.

e) Notwithstanding the provisions of sub—paragraph a) double taxation shall be avoided by

allowing a tax credit as laid down in sub—paragraph b)

aa) if in the Contracting States items of income or capital are placed under differing provisions of this Agreement or attributed to different persons (except pursuant to Article 9) and this conflict cannot be settled by a procedure in accordance with paragraph 3 of Article 25 and if as a result of this difference in placement or attribution the relevant income or capital would remain untaxed or be taxed lower

than without this conflict, or

bb) if after due consultation with the competent authority of the United Mexican States, the Federal Republic of Germany notifies the United Mexican States through diplomatic channels of other items of income to which it intends to apply the provisions of sub—paragraph b). Double taxation is then avoided for the notified income by allowing a tax credit from the first day of the calendar year, next

following that in which the notification was made.

(2) In accordance with the provisions and subject to the limitations of the laws of the United Mexican States, as may be amended from time to time without changing the general principle

hereof, the United Mexican States shall allow its residents as a credit against the Mexican tax:

—28—

a) the German tax paid on income arising or capital situated in the Federal Republic of Germany, in an amount not exceeding the tax payable in the United Mexican States on

such income or capital; and

b) in the case of a company owning at least 10 per cent of the capital of a company which is a resident of the Federal Republic of Germany and from which the first—Inentioned company receives dividends, the German tax paid by the distributing company with respect to the

profits out of which the dividends are paid.

Article 24

Non—discrirnination

(l) Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of

one or both of the Contracting States.

(2) Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of the State

concerned in the same circumstances are or may be subjected.

(3) The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or

family responsibilities which it grants only to its own residents.

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(4) Except where the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first—Inentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if

they had been contracted to a resident of the first—Inentioned State.

(5) Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first—Inentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other

similar enterprises of the first—Inentioned State are or may be subjected.

(6) The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes

of every kind and description.

Article 25

Mutual Agreement Procedure

(1) Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in

accordance with the provisions of the Agreement.

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(2) The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented

within ten years.

(3) The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not

provided for in the Agreement.

(4) The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives,

for the purpose of reaching an agreement in the sense of the preceding paragraphs.

(5) Notwithstanding any other treaties of which the Contracting States are or may become parties, any dispute over a measure taken by a Contracting State involving a tax covered by Article 2 or, in the case of non—discrin1ination, any taxation 1neasure taken by a Contracting State, including a dispute whether this Agreement applies, shall be settled only under the Agreement, unless the

competent authorities of the Contracting States agree otherwise.

Article 26

Exchange of Information

(1) The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on

behalf of a Contracting State or a political subdivision or local authority thereof, insofar as the

-31-

taxation thereunder is not contrary to the Agreement. The exchange of information is not

restricted by Articles 1 and 2.

(2) Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1 or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may

disclose the information in public court proceedings or in judicial decisions.

(3) In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a

Contracting State the obligation:

a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary

to public policy (ordre public).

(4) If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to

decline to supply information solely because it has no domestic interest in suchinfor1nation.

(5) In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to

decline to supply information solely because the information is held by a bank, other financial

-32-

institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to

ownership interests in a person.

Article 27

Assistance in the Collection of Taxes

(1) The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by Articles 1 and 2. The competent authorities of the Contracting

States may by mutual agreement settle the mode of application of this Article.

(2) The term ”revenue claim” as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of a Contracting State or a political subdivision or local authority thereof, insofar as the taxation thereunder is not contrary to this Agreement or any other instrument to which the Contracting States are parties, as well as interest, administrative

penalties and costs of collection or conservancy related to such amount.

(3) When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a

revenue claim of that other State.

(4) When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State. That other State shall take measures of conservancy in respect of that revenue claim in accordance

with the provisions of its laws as if the revenue claim were a revenue claim of that other State

-33-

even if, at the time when such measures are applied, the revenue claim is not enforceable in the

first mentioned State or is owed by a person who has a right to prevent its collection.

(5) Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim under the laws of that State by reason of its nature as such. In addition, a revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue

claim under the laws of the other Contracting State.

(6) Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall not be brought before the courts or administrative bodies of the other

Contracting State.

(7) Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and re1nitted the relevant revenue claim to

the first—1nentioned State, the relevant revenue claim ceases to be

a) in the case of a request under paragraph 3, a revenue claim of the first—1nentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot,

under the laws of that State, prevent its collection, or

b) in the case of a request under paragraph 4, a revenue claim of the first—1nentioned State in respect of which that State may, under its laws, take measures of conservancy with a view to

ensure its collection

the competent authority of the first—1nentioned State shall promptly notify the competent authority of the other State of that fact and, at the option of the other State, the first—1nentioned State shall

either suspend or withdraw its request.

-34-

(8) In no case shall the provisions of this Article be construed so as to impose on a Contracting

State the obligation:

a) to carry out administrative measures at variance with the laws and administrative practice of

that or of the other Contracting State;

b) to carry out measures which would be contrary to public policy (ordre public);

c) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practice;

d) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the benefit to be derived by the other Contracting State.

Article 28 Application of the Agreement in Special Cases

This Agreement shall not be interpreted to mean that a Contracting State is prevented from

applying its domestic legal provisions on the prevention of tax evasion or tax avoidance,

including the provisions regarding thin capitalization and preferential tax regimes.

If the foregoing provision results in double taxation, the competent authorities shall consult each

other pursuant to paragraph 3 of Article 25 on how to avoid double taxation.

Article 29

Members of Diplomatic Missions and Consular Posts

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or

35

consular posts under the general rules of international law or under the provisions of special

agr een1ents .

Article 30

Protocol

The attached Protocol shall be an integral part of this Agreement.

Article 31

Entry into Force

(1) This Agreement shall be ratified; the instruments of ratification shall be exchanged as soon as

possible in Berlin.

(2) The Agreement shall enter into force on the day of the exchange of the instruments of

ratification and shall have effect in both Contracting States:

a) in the case of taxes withheld at source, in respect of amounts paid on or after the first day of

January of the calendar year next following that in which the Agreement entered into force;

b) in the case of other

c) taxes, in respect of taxes levied for periods beginning on or after the first day of January of

the calendar year next following that in which the Agreement entered into force.

(3) The Agreement between the Federal Republic of Germany and the United Mexican States for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital and its

Protocol of February 23, 1993, as well as Notes Exchanged on 20 August and 21 September 1993

36

shall cease to have effect from the date on which the provisions of this Agreement come into

effect in accordance with paragraph (2).

Article 32

Ter1nination This Agreement shall continue in effect for an unlimited period but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give the other Contracting State, through diplomatic channels, written notice of termination and, in such event, this

Agreement shall cease to have effect:

a) in the case of taxes withheld at source, in respect of amounts paid on or after the first day of

January of the calendar year next following that in which notice of termination is given;

b) in the case of other taxes, in respect of taxes levied for periods beginning on or after the first day of January of the calendar year next following that in which notice of termination

is given.

The date of receipt of such notice by the other Contracting State shall be definitive for the

determination of the deadline.

Done at Mexico—City on July 9th 2008 in two originals, each in the German, Spanish and English languages, all three texts being authentic. In the case of divergent interpretation of the German

and the Spanish texts, the English text shall prevail.

For the For the Federal Republic of Germany United Mexican States

Roland Wegener Agustin Guillermo Carstens Carstens

-37-

Protocol to the Agreement between The Federal Republic of Germany and The United Mexican States for the Avoidance of Double Taxation and of Tax Evasion with respect to Taxes on Income and on Capital,

signed on July 9th 2008

The Federal Republic of Germany and the United Mexican States have in addition to the Agreement of July 9th 2008 for the Avoidance of Double Taxation and of Tax Evasion with respect to Taxes on Income and on Capital agreed on the following provisions, which shall form

an integral part of the said Agreement:

1. With reference to the Agreement:

a) In respect of the Federal Republic of Germany, the term “Contracting State” includes “L'ander”. The term “L'ander” means German States in accordance with the Basic Law of the

Federal Republic of Germany.

b) In the case of an item of income, profit or gain derived by or through a person that is fiscally transparent under the laws of either Contracting State, such item shall be considered to be derived by a resident of a State to the extent that the item is treated for the purposes of the

taxation law of such State as the income, profit or gain of that resident.

C)

-2-

It is understood that for the application of the Agreement the fixed base will be treated in accordance with the principles that apply to permanent establishments insofar as the income attributable to a fixed base will be determined and treated in accordance with the principles

that apply to the income attributable to a permanent establishment.

2. With reference to Articles 3, 4, 8, 13, 15 and 22:

It is understood that the “place of effective management” is the place where key management and

commercial decisions that are necessary for the conduct of the entity’s business are in substance

made. The place of the effective management will ordinarily be the place where the most senior

person or group of persons makes its decisions, the place where the actions to be taken by the

entity as a whole are determined.

3. With reference to Article 7:

a)

b)

With reference to paragraph 1 of Article 7, profits derived from the alienation of goods or merchandise in the State of the permanent establishment may be attributed to that permanent establishment, if it is proved that the permanent establishment has been involved in that operation, but only on the basis of the amount which is attributable to the permanent establishment based on a functional analysis taking into account the activity actually

performed, the risk taken and the assets used.

In the case of contracts, in particular for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, where the enterprise has a permanent establishment in the other Contracting State, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but only on the basis of the amount which is attributable to the permanent establishment based on a functional analysis taking into account the activity actually performed, the risk taken and the assets used. Profits derived from the supply of goods to

that permanent establishment or profits related to the part of the contract which is carried

-3-

out in the Contracting State in which the head office of the enterprise is situated shall be

taxable only in that State.

c) Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultancy or supervisory services shall be deemed to be payments

to which the provisions of Article 7 of the Agreement apply.

4. With reference to Article 8:

It is understood that the profits referred to in paragraph 1 of Article 8 shall not include profits derived from a transport activity other than the operation of ships or aircraft in international

traffic.

5. With reference to Article 10:

It is understood that in the case of the Federal Republic of Germany distributions on certificates

of an investment fund are treated as dividends.

6. With reference to Articles 10 and 11:

Notwithstanding the provisions of Articles 10 and 11 of this Agreement, dividends and interest

may be taxed in the Contracting States in which they arise, and according to the law of that State,

a) if they are derived from rights or debt clai1ns carrying a right to participate in profits, including income derived by a silent partner (“stiller Gesellschafter”) from his participation as such, or from a loan with an interest rate linked to borrower’s profit (“partiarisches Darlehen”) or from profit sharing bonds (“Gewinnobligationen”) within the meaning of the

tax law of the Federal Republic of Germany and

b)

-4-

under the condition that they are deductible in the determination of profits of the debtor of

such income.

7. With reference to Articles 11 and 12:

a)

b)

For the purposes of the provisions of paragraph 7 of Article 11, if the loan is incurred by the head office of the enterprise and the amount in question affects several permanent establishments or fixed bases situated in different countries, then the interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated, but only so much of the interest payment as is borne by such permanent

establishment or fixed base.

For the purposes of the provisions in paragraph 5 of Article 12, where the obligation to pay the royalties is incurred by the head office of the enterprise and the right or property in respect of which they are paid is effectively connected with several permanent establishments or fixed bases situated in different countries, then the royalties shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated, but only so

much of the royalty payment as is borne by such permanent establishment or fixed base.

8. With reference to Article 19:

The Goethe Institute and the German Academic Exchange Service (“Deutscher Akademischer

Austauschdienst”) are deemed to be legal entities under public law in the meaning of Article 19.

The provisions of paragraphs 1 and 2 of Article 19 shall apply in respect of salaries, wages and

other similar remuneration and pensions paid to individuals in respect of services rendered to

such institutions. If such re1nuneration is not taxed in the State where the institution was founded,

the provisions of Article 15 shall apply. The Contracting States can 1nutually agree that this

provision will be applied to other comparable institutions.

9. With reference to Article 26:

If personal data are exchanged under this Agreement, the following provisions in addition to

domestic law shall apply subject to the legal provisions in effect for each Contracting State:

a)

b)

C)

d)

e)

The receiving agency may use such data only for the stated purpose and shall be subject to

the conditions prescribed by the supplying agency.

The receiving agency shall on request inform the supplying agency about the use of the

supplied data and the results achieved thereby.

Personal data may be supplied only to the responsible agencies. Any subsequent supply to

other agencies may be effected only with the prior approval of the supplying agency.

The supplying agency shall be obliged to ensure that the data to be supplied are accurate and that they are necessary for and proportionate to the purpose for which they are supplied. If it emerges that inaccurate data or data which should not have been supplied have been supplied, the receiving agency shall be informed of this without delay. That agency shall be

obliged to correct or erase such data without delay.

Upon application the person concerned shall be informed of the supplied data relating to him and of the use to which such data are to be put. There shall be no obligation to furnish this information if on balance it turns out that the public interest in withholding it outweighs the interest of the person concerned in receiving it. In all other respects, the right of the person concerned to be informed of the existing data relating to him shall be governed by the domestic law of the Contracting State in whose sovereign territory the application for

the information is made.

The receiving agency shall bear liability in accordance with its domestic laws in relation to any person suffering unlawful damage as a result of supply under the exchange of data pursuant to this Agreement. In relation to the damaged person, the receiving agency may

not plead to its discharge that the damage had been caused by the supplying agency.

—6—

g) Where the domestic law of the supplying agency contains special provisions for the deletion of the personal data supplied, that agency shall inform the receiving agency accordingly. Irrespective of such law, supplied personal data shall be erased once they are no longer

required for the purpose for which they were supplied.

h) The supplying and the receiving agencies shall be obliged to keep official records of the

supply and receipt of personal data.

i) The supplying and the receiving agencies shall be obliged to take effective measures to protect the personal data supplied against unauthorised access, unauthorised alteration and

unauthorised disclosure.

Done at Mexico—City on July 9th 2008 in two originals, each in the German, Spanish and English languages, all three texts being authentic. In the case of divergent interpretation of the German

and the Spanish texts, the English text shall prevail.

For the For the

Federal Republic of Germany United Mexican States

Roland Wegener Agustin Guillermo Carstens Carstens