    [Senate Treaty Document 113-4]
    [From the U.S. Government Publishing Office]

    113th Congress                                              Treaty Doc.
    2d Session                      SENATE                     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 PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
            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

                             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 Avoidance 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 ``proposed 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 treaty policy. The proposed protocol exempts from
    source-country withholding cross-border payments of certain
    direct dividends, interest, royalties, and capital gains, and
    updates the provisions of the existing convention with respect
    to preventing abuse by third-country investors and the
    exchanges of information between revenue authorities. 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 ratification.

                                                          Barack Obama.
        The White House, May 7, 2014.
                              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 Avoidance 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 Madrid, together with
    correcting notes dated July 23, 2013, and January 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 withholding cross-border payments of certain direct
    dividends, interest, royalties, and capital gains, and updates
    the provisions of the existing convention with respect to
    preventing abuse by third-country investors and the exchanges
    of information between revenue authorities. Also, the proposed
    protocol updates the mutual agreement 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 overview 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
    negotiation of the proposed protocol, and the Department of the
    Treasury joins the Department of State in recommending the
    proposed protocol 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.