Protocol Signed Between Canada and Spain
November 18, 2014
A Protocol to the Convention between Spain and Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (the "Protocol") was signed in Madrid on November 18, 2014.
The Protocol reduces withholding tax rates applicable on payments of dividends and interest and exempts from withholding tax certain payments of interest, and dividends paid to certain pension plans. The Protocol also provides for assistance in the collection of taxes and includes provisions reflecting the standard developed by the Organisation for Economic Cooperation and Development for the exchange of tax information.
Canada and Spain will notify each other of the completion of their respective procedures which are necessary for the entry into force of the Protocol. The Protocol will enter into force after a period of three months following the date of receipt of the later of the notifications, and its provisions will have effect in accordance with Article 16 of the Protocol.
A further notice advising of the entry into force of the Protocol will be communicated at that time.
For further information contact:
Tax Legislation Division
For information concerning the interpretation and application of Canada's tax treaties, please contact the Canada Revenue Agency (CRA). Contact information is available on the CRA website. The CRA website has information concerning tax treaties and other information concerning international tax issues.