(November 18, 2014)

On November 18, 2014 the Canadian Department of Finance issued a press release announcing that on November 18, 2014 Canada and Spain signed a Protocol amending their existing DTA.

According to the press release issued by the Canadian Department of Finance 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.

The Protocol is signed, but hasn’t entered into force yet. For the Protocol to enter into force both the Government of Canada and the Government of Spain will have to complete their respective ratification processes.

For further information click here to be forwarded to the full text of the Protocol as published on the website of the Canadian Department of Finance, which will open in a new window.

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