CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Spain, US Sign DTA Protocol

Spain, US Sign DTA Protocol

by Ulrika Lomas, Tax-News.com, Brussels

21 January 2013


Spain's Finance Minister Cristobal Montoro and the US Ambassador to Spain Alan Solomont have recently signed a protocol modifying the existing agreement between Spain and the US aimed at avoiding double taxation and preventing tax evasion.

The text, which must now be ratified by the respective national legislatures of both contracting states, replaces the existing agreement dating from February 22, 1990, and is due to enter into force three months after the ratification date.

Following the signing, both ministers underlined the importance of the accord, designed to strengthen the already close commercial relations between the two countries and to boost investment.

The protocol provides notably for improvements in the treatment of dividends, interests, royalties, and capital gains, and as well as for improvements as regards tax information exchange.

According to Spain's Secretary of State for Finance Miguel Ferre, the signed protocol reinforces legal certainty for companies and places the framework of the agreement with the US on a par with similar treaties negotiated with Spain's preferred partners in Europe.

Commenting, the US treasury explained: "Significantly, the new protocol provides for exclusive residence-country taxation of interest, royalties, certain direct dividends and capital gains. In addition, consistent with a number of recent US tax treaties, the new protocol provides for resolution through mandatory binding arbitration of certain cases that the revenue authorities of the United States and Spain have been unable to resolve after a reasonable period of time."

It added: "The new protocol contains a comprehensive limitation on benefits provision that is intended to ensure that only residents of the United States and Spain will enjoy the benefits of the treaty. The new protocol also provides for the full exchange of information between the competent authorities to facilitate the administration of each country's tax laws."

The signing of the protocol follows the announcement in December 2012 that representatives of the US and Spanish government initialed an inter-governmental agreement to implement the Foreign Account Tax Compliance Agreement provisions.

TAGS: tax | investment | double tax agreement (DTA) | interest | royalties | law | agreements | Spain | United States | dividends

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »