from the president of the united statesspain tax treaty relations into closer conformity with u.s....
TRANSCRIPT
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON :
1
39–112
SENATE " ! 113TH CONGRESS 2d Session
TREATY DOC.
2014
113–4
THE PROTOCOL AMENDING THE TAX CONVENTION WITH SPAIN
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES TRANSMITTING
THE PROTOCOL AMENDING THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND THE KINGDOM OF SPAIN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVEN-TION OF FISCAL EVASION WITH RESPECT TO TAXES ON IN-COME AND ITS PROTOCOL, SIGNED AT MADRID ON FEBRUARY 22, 1990
MAY 7, 2014.—Treaty was read the first time, and together with the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate
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(III)
LETTER OF TRANSMITTAL
To the Senate of the United States: I transmit herewith, for the advice and consent of the Senate to
its ratification, the Protocol Amending the Convention between the United States of America and the Kingdom of Spain for the Avoid-ance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and its Protocol, signed at Madrid on February 22, 1990, and a related Memorandum of Understanding signed on January 14, 2013, at Madrid, together with correcting notes dated July 23, 2013, and January 31, 2014 (together the ‘‘pro-posed protocol’’). I also transmit for the information of the Senate the report of the Department of State, which includes an overview of the proposed protocol.
The proposed protocol was negotiated to bring United States- Spain tax treaty relations into closer conformity with U.S. tax trea-ty policy. The proposed protocol exempts from source-country with-holding cross-border payments of certain direct dividends, interest, royalties, and capital gains, and updates the provisions of the exist-ing convention with respect to preventing abuse by third-country investors and the exchanges of information between revenue au-thorities. The proposed protocol also updates the mutual agreement procedure by requiring binding arbitration of certain cases that the competent authorities of the United States and Spain have been unable to resolve after a reasonable period of time.
I recommend the Senate give early and favorable consideration to the proposed protocol and give its advice and consent to its rati-fication.
BARACK OBAMA. THE WHITE HOUSE, May 7, 2014.
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(V)
LETTER OF SUBMITTAL
DEPARTMENT OF STATE, Washington, February 24, 2014.
The PRESIDENT, The White House.
DEAR MR. PRESIDENT: I have the honor to submit to you, with a view to their transmission to the Senate for advice and consent to ratification, the Protocol Amending the Convention between the United States of America and the Kingdom of Spain for the Avoid-ance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol, signed at Madrid on February 22, 1990, and a related Memorandum of Understanding (together the ‘‘proposed protocol’’) signed January 14, 2013, at Ma-drid, together with correcting notes dated July 23, 2013, and Janu-ary 31.
The proposed protocol was negotiated to bring U.S.-Spain tax treaty relations into closer conformity with current U.S. tax treaty policy. The proposed protocol exempts from source-country with-holding cross-border payments of certain direct dividends, interest, royalties, and capital gains, and updates the provisions of the exist-ing convention with respect to preventing abuse by third-country investors and the exchanges of information between revenue au-thorities. Also, the proposed protocol updates the mutual agree-ment procedure by requiring binding arbitration of certain cases the competent authorities of the United States and Spain have been unable to resolve after a reasonable period of time. An over-view of key provisions of the proposed protocol is enclosed with this report.
The proposed protocol is self-executing. The Department of the Treasury and the Department of State cooperated in the negotia-tion of the proposed protocol, and the Department of the Treasury joins the Department of State in recommending the proposed pro-tocol and correcting notes be transmitted to the Senate as soon as possible for its advice and consent to ratification.
Respectfully submitted, JOHN F. KERRY.
Enclosures: As stated.
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