[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.

    
    
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