Archived - Canada and Spain Sign New Tax Protocol
November 18, 2014 – Ottawa, Ontario – Department of Finance
Finance Minister Joe Oliver today announced the signing of a Protocol to amend the existing income tax convention between Canada and Spain. The Protocol was signed in Madrid by Canada’s Ambassador to Spain, Jon Allen, and Spain’s Minister of Finance and Public Administration, Cristóbal Montoro.
The Protocol will help eliminate tax barriers to trade and investment, and will enhance economic links between Canada and Spain. It will also create new trade and investment opportunities.
- The Canada-Spain Income Tax Convention was signed on November 23, 1976.
- The opening round of negotiations for a revised tax treaty between Canada and Spain was held in April 2007 in Madrid. A second round of negotiations was held in October 2008 in Ottawa. Subsequent negotiations have resulted in the new Protocol being announced today.
- 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 Organisation for Economic Co-operation and Development standard 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.
- Canada has 92 tax treaties and 21 Tax Information Exchange Agreements in force, and has signed or is negotiating many more.
Nicholas Bergamini
Press Secretary
Office of the Minister of Finance
613-369-5696
Stéphanie Rubec
Media Relations
Department of Finance
613-369-4000
