Morocco

This Convention applies to persons resident in one or both Contracting States.

1. This Convention applies to income and property taxes payable by each Contracting State and its local authorities, irrespective of the system of its levy.

2. Income and property taxes are those which tax all income or property or any element of income or property, including taxes on profits resulting from the disposal of movable or immovable property, on the total tax on land or wages paid by enterprises (excluding social security contributions), as well as on capital gains.

3. The current taxes to which this Article specifically applies are:

With regard to Morocco:

1. The business profit tax and the investment reserve ‘(L’impot sur les beneficies professionnels et la reserve d'investissement’).

2. The levy on public and private salaries, allowances and emoluments, wages, pensions and life annuities.

3. The urban contribution and related contributions (‘La taxe urbaine et les taxes y rattachees’).

4. The agricultural tax (‘L'impot agricole’).

5. The supplementary contribution on the overall income of natural persons (‘La contribution complementaire sur le revenu global des personnes physiques’).

6. The tax on the products of shares or shares and similar income (‘La taxe sur les produits des actions ou parts sociales et revenus assimiles’).

7. The patent tax ('L'impot des patentes').

As regards Spain:

1. General income tax on natural persons.

2. General income tax for companies and legal entities.

3. The following taxes: the rustic and livestock territorial contribution, the urban territorial contribution, the capital income tax, the personal labour income tax and the tax on commercial and industrial activities and profits.

4. The area fee and excise duty on commercial profits, regulated by Act of 27 June 1974 for undertakings engaged in the research and exploitation of hydrocarbons.

5. Local taxes on income or wealth as well as taxes on capital gains.

4. The Convention shall also apply to future taxes of an identical or similar nature which are added to or replaced by current taxes. The competent authorities of the Contracting States shall communicate, since its promulgation, the amendments made to their respective tax laws.

1. For the purposes of this Convention, unless there is a different interpretation of the context:

(a) The term 'Spain' means the Kingdom of Spain and the term 'Morocco' means the Kingdom of Morocco.

(b) The terms ‘one Contracting State’ and ‘the other Contracting State’ mean, depending on the context, Morocco or Spain.

(c) The term ‘person’ includes natural persons, companies and any other grouping of persons.

(d) The term 'Society' means any legal person or any entity that is considered a legal person for tax purposes.

(e) The terms ‘Company of one Contracting State’ and ‘Company of the other Contracting State’ mean, respectively, an Enterprise operated by a resident of one Contracting State, and an Enterprise operated by a resident of the other Contracting State.

(f) The term 'nationals' means:

(a) Any natural person possessing the nationality of a Contracting State.

(b) Any legal person, society of persons and association constituted under the law in force in a Contracting State.

(g) “International traffic” means any transport carried out by a ship or aircraft operated by an Enterprise whose effective headquarters are located in a Contracting State, except where the ship or aircraft is operated only between two points located in the other Contracting State.

(h) ‘competent authority’ means:

(1) In Morocco: the Minister of Finance or his representative, with due authorization or delegation.

(2) In Spain: the Minister of Finance or his representative, duly authorized or delegated.

2. For the application of the Convention by a Contracting State, any term not defined in the Convention shall have, unless a different interpretation is given from the context, the meaning attributed to it by the legislation in force in the State concerned with regard to the taxes which are the subject of this Convention.

1. For the purposes of this Convention, the term ‘resident of a Contracting State’ means any person who, under the law of that State, is subject to taxation in that State by reason of his domicile, residence, address or any other criterion of a similar nature.

2. Where, under the provisions of paragraph 1, a natural person is resident in both Contracting States, his situation shall be resolved as follows:

1. This person shall be considered a resident of the Contracting State where he or she has a permanent dwelling at his or her disposal. If you have permanent housing at your disposal in both states, you will be considered a resident of the Contracting State with which you have closer personal and economic relationships (centre of vital interests).

2. If the Contracting State in which that person has the centre of his vital interests could not be determined, or if he did not have permanent housing at his disposal in any of the Contracting States, he would be considered a resident of the Contracting State in which he habitually lives.

3. If he habitually lives in both Contracting States or does not live in either Contracting State, he shall be considered a resident of the Contracting State of which he is a national.

4. If he is a national of either Contracting State or is not a national of either Contracting State, the competent authorities of the two Contracting States shall decide the case by mutual agreement.

5. Where, under the provisions of paragraph 1, a person other than a natural person is resident in both Contracting States, he or she shall be considered a resident of the Contracting State in which his or her place of effective management is located.

1. For the purposes of this Agreement, the term ‘permanent establishment’ means a fixed place of business through which an Enterprise carries out all or part of its activity.

2. The term ‘permanent establishment’ includes, in particular:

(a) A management or operating headquarters.

(b) A branch office.

(c) One office.

(d) One factory.

(e) One workshop.

(f) A mine, quarry or any other place of extraction of natural resources.

(g) A construction or assembly work lasting more than 12 months.

(h) A store.

3. Notwithstanding the preceding provisions of this Article, a permanent establishment is not considered to exist if:

(a) The use of facilities is for the sole purpose of storing, displaying or delivering goods belonging to the Enterprise;

(b) The maintenance of a warehouse of goods belonging to the Company is for the sole purpose of storing, displaying or delivering them;

(c) The maintenance of a deposit of goods or goods belonging to the Enterprise is for the sole purpose of their processing by another Company;

(d) The maintenance of a fixed place of business is for the sole purpose of purchasing goods to issue to the Enterprise itself in the other Contracting State or to collect information for the Enterprise;

(e) The maintenance of a fixed place of business is for the sole purpose of advertising, providing information, scientific research or other similar activity of an auxiliary or preparatory nature for the Enterprise.

4. Any person acting in a Contracting State on behalf of an Enterprise of another Contracting State - other than an agent enjoying an independent Statute, as referred to in paragraph 5 - shall be regarded as a ‘permanent establishment’ in the first State if he has in that State powers, which he habitually exercises, to conclude contracts on behalf of the Enterprise, unless the activity of that person is limited to the purchase of goods for the Enterprise.

It is considered in particular that such powers are available to the agent who normally has in the first Contracting State a 'stock' of products or goods belonging to the Company by means of which he regularly carries out the orders he receives on behalf of the Company.

5. An Enterprise of one Contracting State shall not be considered as having a permanent establishment in the other Contracting State merely because it carries out its activities through a broker, a general commissioner or any other intermediary, provided that such persons act within the ordinary framework of their activity. However, if the intermediary whose cooperation is used has a ‘stock’ of goods in storage or consignment from which sales and deliveries are made, it is admitted that this ‘stock’ defines the existence of a permanent establishment of the Company.

6. The fact that a Company resident of a Contracting State controls or is controlled by a Corporation resident of the other Contracting State or that carries out commercial transactions (whether by permanent establishment or otherwise) does not by itself render any of these Societies permanent establishment of the other.

1. Income from immovable property, including farm or forestry income, may be taxed in the Contracting State where such property is located.

2. The term ‘real property’ shall be defined in accordance with the Law of the Contracting State in which the property in question is situated. In any event, the term includes accessories, livestock or equipment from agricultural and forestry holdings, rights to which private law provisions relating to real estate apply, the use of immovable property and rights to variable or fixed fees for the exploitation or concession of exploitation of mineral deposits, sources and other land wealth. Ships and aircraft are not considered real property.

3. The provisions of paragraph 1 apply to income derived from direct use, lease or shareholding, disposal and any other form of exploitation of immovable property.

4. The provisions of paragraphs 1 and 3 also apply to income derived from the immovable property of an undertaking and to the income from immovable property used for the pursuit of a liberal profession.

1. The profits of an Enterprise of one Contracting State may be taxed only in this state, unless the Enterprise carries out its activity in the other Contracting State through a permanent establishment located in the other Contracting State. If the Enterprise carries out its business in such a way, the profits of the Enterprise may be taxed in the other State, but only to the extent that they can be attributed to this permanent establishment.

2. Where an Enterprise of one Contracting State carries out its activity in the other Contracting State through a permanent establishment situated in the other Contracting State, in each Contracting State, the profits it would have obtained from being a separate and separate Enterprise carrying out the same or similar activities under the same or similar conditions shall be attributed to that establishment and shall deal entirely independently with the Enterprise of which it is a permanent establishment.

3. For the purpose of determining the benefit of the permanent establishment, the deduction of the expenses incurred for the realization of the purposes of this permanent establishment shall be permitted, including the management and general administrative expenses corresponding to the services performed for the benefit of this permanent establishment, whether they are incurred in the State in which the permanent establishment is located or elsewhere.

4. Where profits include income regulated separately in other articles of this Convention, the provisions of those articles shall not be affected by those of this Article.

1. Profits from operating ships or aircraft in international traffic may be taxed only in the Contracting State in which the effective head office of the Enterprise is located.

2. The provisions of paragraph 1 also apply to the profits of these undertakings from participation in a maritime and air navigation pool of any kind.

3. If the seat of effective management of a Maritime Navigation Enterprise is on board a ship, that seat shall be deemed to be in the Contracting State where the base port of the vessel is located.

1. Where an Enterprise of one Contracting State, by virtue of its participation in the direction or capital of an Enterprise of the other Contracting State, agrees with the latter, or imposes in commercial or financial relations conditions different from those agreed with a third Enterprise, all profits that would have to appear under normal conditions in the accounts of one of the Companies, but which have thus been transferred to the other Enterprise, may be incorporated into the taxable profits of the first Enterprise.

2. An Enterprise is considered to be a participant in the management or capital of another Enterprise especially when the same or the same persons participate directly or indirectly in the management or capital of each of these two Enterprises.

1. Dividends paid by a company resident of one Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State in which the company paying the dividends resides and in accordance with the law of that State, but the tax thus required may not exceed:

1. 10 per cent of the gross amount of dividends if the benefit of the dividends is a company (excluding companies of persons) that holds direct legal title to at least 25 per cent of the capital of the company that pays the dividends.

2. 15 per cent of the gross amount of dividends in all other cases.

3. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, resident of one Contracting State, has in the other Contracting State of which the company that pays the dividends is resident a permanent establishment, with which the share generated by the dividends is effectively linked. In this case, the provisions of article 8 apply.

4. The term ‘dividend’ used in this Article covers the income from shares, shares or vouchers, parts of mines, parts of founders or other rights, except credit rights, which allow for participation in profits, as well as income from other social participations assimilated to the income from shares by the tax legislation of the State in which the company distributing them resides.

5. Where a company resident of one Contracting State obtains profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by the Society to persons who are not residents of that other State, nor subject the undistributed profits of the Society to a tax on them, even if dividends paid or profits not distributed consist, in whole or in part, of profits or income from that other State.

1. Interest from one Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, these interests may be taxed in the Contracting State from which they come and in accordance with the law of that State, but the tax thus required may not exceed 10 per cent of the gross amount of interest.

3. The term ‘interest’ used in this Article includes the income from public funds, bonds or bonds, loans, with or without a mortgage guarantee or a profit-sharing clause, and credits of any kind, as well as any other proceeds assimilated to income in amounts provided by the tax legislation of the state from which the income originates.

4. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the interest, resident of one Contracting State, has in the other Contracting State from which the interest derives a permanent establishment with which the claim generating the interest is effectively linked. In this case, the provisions of Article 7 apply.

5. Interest is considered to come from a Contracting State when the debtor is the State itself, a local entity or a resident of that State. However, where the debtor of interest, whether or not it is resident of a Contracting State, has a permanent establishment in a Contracting State in respect of which the debt giving rise to the payment of the interest and bears the burden of the interest is incurred, it shall be considered as originating in the Contracting State where the permanent establishment is situated.

6. If, as a result of special relations between the debtor and the creditor or of the relations between them and third parties, the amount of interest paid, taking into account the claim in respect of which those interests are paid, exceeds those which would have been agreed between the debtor and the creditor in the absence of such relations, the provisions of this article shall apply only to the latter amount. In this case, the party exceeding the payments may be subject to taxation in accordance with the law of each Contracting State, taking into account the other provisions of this Convention.

1. Fees from one Contracting State paid to a resident of the other Contracting State may only be taxed in that other State.

2. However, these fees may be subject to taxation in the Contracting State concerned and in accordance with the law of that State, taking into account the following rules:

(a) The fees levied as a consideration for the use or granting of copyrights in literary, artistic or scientific works, excluding cinematographic and television films, are paid in one of the Contracting States to a person who has his tax domicile in the other Contracting State, may be subject to taxation in the first State, but the corresponding tax may not exceed 5 per cent of the gross amount of royalties.

(b) The fees arising from the granting of licences for the exploitation of patents, designs and models, drawings, formulae or secret procedures from sources located in the territory of one of the Contracting States and paid to a person domiciled in the other State may be taxed in the former State, but the corresponding tax may not exceed 10 per cent of the gross amount of the fees.

(c) The same treatment as for the fees referred to in paragraph (b) above applies to amounts paid for the granting of licences for the exploitation of trademarks, for the rental of the right to use cinematographic and television films, similar remuneration for the provision of information relating to industrial, commercial or scientific experiments, as well as remuneration for technical or economic studies. The same applies to rental fees and similar remuneration for the use or right of use of agricultural, industrial, port, commercial or scientific equipment.

3. The provisions of paragraph 1 do not apply if the beneficiary of the royalties, resident of one Contracting State, has in the other Contracting State, from which the royalties come, a permanent establishment with which the right or property for which the royalties are paid is effectively linked. In such cases, the provisions of article 7 apply.

4. Where due to special relations between the debtor and the creditor or between them and third parties, the amount of the fees paid, having regard to the benefit for which they are paid, exceeds the amount that would have been agreed by the debtor and the creditor in the absence of such relationships, the provisions of this article shall apply only to the latter amount. In this case, the excess may be imposed in accordance with the law of each Contracting State, taking into account the other provisions of this Convention.

1. Profits arising from the disposal of immovable property as defined in Article 6(2) may be taxed in the Contracting State in which such property is situated.

2. Gains from the disposal of movable property forming part of the assets of a permanent establishment held by an Enterprise of one Contracting State in the other Contracting State, or from movable property belonging to a fixed basis held by a resident of one Contracting State in the other Contracting State for the exercise of a liberal profession, including gains arising from the alienation of that permanent establishment (only or with the Enterprise as a whole) or from this fixed basis, may be taxed in this other State. However, gains resulting from the disposal of movable property covered by Article 22(3) may only be taxed in the Contracting State where the goods in question may be taxed under that Article.

3. Profits arising from the disposal of any property other than those referred to in paragraphs 1 and 2 may be taxed only in the Contracting State in which the transferor resides.

1. Income earned by a resident of a Contracting State through the pursuit of a liberal profession or other activities of an independent nature, of a similar nature, may only be taxed in this state. However, such income may be taxed in the other Contracting State in the following cases:

(a) If the person concerned normally has a fixed basis in the other Contracting State for the pursuit of his activities; in that case only the portion of such income attributable to that fixed base may be taxed in the other Contracting State.

(b) If their stay in the other Contracting State is for a period or periods of total duration of 183 days or more during the fiscal year.

2. The term ‘liberal profession’ includes, in particular, independent scientific, literary, artistic, educational or pedagogical activities, as well as independent activities of doctors, lawyers, engineers, dentists and accountants.

1. Without prejudice to articles 16 and 17, salaries, wages and similar remunerations obtained by a resident of a Contracting State on the basis of wage employment may only be taxed in this state, unless the employment is exercised in the other Contracting State. If the employment is exercised there, the remuneration received for this purpose may be subject to taxation in this other State.

2. Notwithstanding article 1, remunerations obtained by a resident of a Contracting State on the basis of an employed employee in the other Contracting State may be imposed in the first State only if the following three conditions are met:

(a) The preceptor remains in the other State, one or more periods which, in total, do not exceed one hundred and eighty-three days during the fiscal year concerned; and

(b) Remuneration is paid by, or on behalf of, an employer who is not a resident of the other State.

(c) Remuneration is not borne by a permanent establishment or a fixed basis which the employer has in the other State.

3. Notwithstanding the provisions of this article, remunerations obtained on account of employment on board a ship or aircraft operated in international traffic may be subject to taxation in the Contracting State in which the place of effective management of the Enterprise is located.

Participations, attendance allowances and other similar remunerations which a resident of a Contracting State obtains as a member of a Board of Directors or supervisory body of a company resident of the other Contracting State may be subject to taxation in that other State.

1. By way of derogation from Articles 15 and 16, the rents which the professionals of the spectacle, such as theatre, cinema, radio or television artists and musicians, as well as the athletes obtain from their personal activity and as such, may be subject to taxation in the Contracting State in which these activities are carried out.

The above rule also applies to income earned by persons who exploit or organize the above-mentioned activities.

2. The provisions of paragraph 1 do not apply to income derived from activities carried out in one Contracting State by non-profit bodies of the other Contracting State or by members of its staff, unless the latter act on their own account.

Private pensions and life income paid to a resident of a Contracting State may only be taxed in that State.

1. (a) Remuneration, excluding pensions, paid by a Contracting State or one of its political subdivisions or local entities to a natural person, for the purpose of services rendered to that State or to that subdivision or entity, may be subject to taxation only in that State.

(b) However, such remuneration may be subject to taxation in the other Contracting State only if the services are provided to that State and if the natural person is a resident of that State who:

(i) possesses the nationality of this State; or

(ii) It has not acquired the status of resident of this State solely to provide the services.

2. (a) Pensions paid by a Contracting State or by one of its political or administrative subdivisions or local entities, either directly or from funds constituted for that purpose, to a natural person for the purpose of services rendered to that State, to this branch or entity, may be subject to taxation only in that State.

(b) Such pensions may, however, be subject to taxation only in the Contracting State, where the beneficiary is resident, provided that he or she is a national of that State.

3. The provisions of articles 15, 16 and 18 apply to remuneration and pensions paid for services provided within the framework of a commercial or industrial activity carried out by a Contracting State, one of its political subdivisions or local entities.

The amounts that a student or a person in practice, who is or has been immediately before arriving in a Contracting State, resident of the other Contracting State and who is in the first State for the sole purpose of continuing his or her studies or completing his or her training, receives or earns to cover his or her maintenance, education or training expenses, may not be imposed in the first State.

The income of a resident of a Contracting State not expressly referred to in the preceding articles of this Convention may be taxed only in that State, except in the case where such income is effectively linked to the activity of a permanent establishment or a fixed basis held by that beneficiary in the other Contracting State.

1. Property constituted by immovable property, as defined in Article 6(2), may be taxed in the Contracting State where such property is situated.

2. Property consisting of movable property forming part of the assets of a permanent establishment of an Enterprise or of movable property forming part of a fixed base serving for the pursuit of a liberal profession may be taxed in the Contracting State where the permanent establishment or fixed base is located.

3. Ships and aircraft operated in international traffic, as well as movable property affected by their operation, may be subject to taxation only in the Contracting State where the effective head office of the Enterprise is located.

4. All other assets of a resident of a Contracting State may be subject to taxation only in that State.

1. Where a resident of a Contracting State obtains income or possesses property which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first State may, subject to the provisions of paragraph 2 below, exempt such income or property from tax, but, in order to calculate the tax corresponding to the remaining income or property of that resident, apply the tax rate which would correspond if the income or property in question were not exempt.

2. Where a resident of a Contracting State obtains income which, in accordance with the provisions of articles 10, 11 and 12, may be taxed in the other Contracting State, the first state shall deduct the income tax of that resident an amount equal to the tax paid in the other Contracting State. The amount thus deducted may not, however, exceed the part of the corresponding tax, the income obtained in the other Contracting State, calculated before deduction.

The Spanish tax deduction applies to both general and account taxes.

3. For the purposes of applying paragraph 2 above, it is considered that interest on loans issued by specialized agencies to cooperate with the economic development of Morocco has been taxed in Morocco at the rate of 10 per 100. These bodies are mentioned in the annexed protocol.

The provisions of this paragraph apply for a period of 10 years from the date of entry into force of this Convention.

4. Where, in accordance with any provision of the Convention, the income received by a resident of a Contracting State or the property held by him is exempt from tax in that State, the latter may, however, in order to calculate the amount of tax on the remaining income or property of that resident, take into account the exempt income or property.

1. Nationals of one Contracting State shall not be subject in the other Contracting State to any taxes or obligations relating thereto which are not or are more burdensome than those to which nationals of that other State who are in the same conditions are or may be subject.

2. In particular, nationals of one Contracting State who may be subject to taxation in the territory of the other Contracting State may benefit under the same conditions as nationals of the latter State from exemptions, allowances, deductions and tax reductions granted on the basis of family charges.

3. The imposition of a permanent establishment held by an Enterprise of one Contracting State in the other Contracting State shall not be established in that State in a less favourable manner than the Enterprises of that other State carrying out the same activities.

This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other Contracting State the personal deductions, allowances and tax deductions it grants to its own residents in view of their marital status, family burdens or other personal elements.

4. Companies of a Contracting State whose capital is owned or controlled in whole or in part, directly or indirectly, by one or more residents of the other Contracting State shall not be subject in the state referred to above to any taxes and obligations relating thereto which are not or are burdensome to those to which other similar undertakings of the first Contracting State are or may be subject.

5. The term ‘tax’ in this Article refers to taxes of any kind or name.

1. If a taxpayer considers that the measures taken by the tax authorities of the Contracting States involve or may represent for an imposition that is not in accordance with the provisions of this Convention, he may lodge a complaint with the competent authorities of the State whose imposition he contests. If the resolution of this claim is delayed by a period of six months, it may appeal to the competent authorities of the other State. If they find the complaint well founded, they shall agree with the competent authorities of the first State in order to avoid an imposition which is not in conformity with the Convention.

2. The competent authorities of the Contracting States shall endeavour to resolve difficulties or to dispel any doubts arising from the interpretation or application of this Convention by means of an amicable agreement. They may also agree to try to avoid double taxation in cases not covered by the Convention.

3. If it is considered appropriate, in order to reach agreement, to hold talks, the matter would be entrusted to a Joint Committee composed of equal representatives of the Contracting States. The chairmanship of the Commission shall be exercised alternately by one member of each delegation.

1. The competent authorities of the Contracting States shall exchange the information necessary to implement this Convention. Any information thus exchanged shall be kept secret and communicated only to persons or authorities responsible for the management or collection of taxes covered by the Convention and claims and remedies relating to such taxes, as well as to the judicial authorities responsible for criminal proceedings relating to such taxes.

2. In no case may the provisions of subparagraph i be interpreted as obliging a Contracting State to:

(a) Take administrative measures contrary to its legislation or administrative practice or those of the other Contracting State.

(b) Provide information that cannot be obtained on the basis of its own legislation or in the exercise of its normal administrative practice or that of the other Contracting State.

(c) Provide information revealing a commercial, industrial or professional secret or a commercial procedure, or information whose communication is contrary to public policy.

3. The exchange of information shall take place either ex officio or to satisfy requests relating to specific cases. The competent authorities of the Contracting States shall agree to determine the list of information to be provided ex officio.

The provisions of this Convention shall not affect the tax privileges enjoyed by diplomatic or consular officials in accordance with the general principles of international law or under special agreements.

1. This Convention shall be ratified; instruments of ratification shall be exchanged as soon as possible.

2. This Convention shall enter into force on the 30th day following the exchange of instruments of ratification and its provisions shall apply:

(a) source taxes on income paid from the day of entry into force.

(b) other taxes established on income from tax periods ending on 1 January of the year of entry into force.

This Convention shall remain in force for an indefinite period; however, each Contracting State may, until 30 June including any calendar year after the fifth year of ratification of the Convention, denounce the Convention, in writing and through diplomatic channels, to the other Contracting State. In the event of denunciation before 1 July of that year, the Convention shall last apply:

1. To taxes at source on income paid or whose payment may be required prior to 31 December, including the year in which the complaint took place.

2. The other taxes established on income corresponding to the tax periods ending on 31 December of the same year.

In faith, the undersigned, duly authorized to do so, have signed this Convention.

Done at Madrid on 10 July 1978, in duplicate, in French.

At the time of signing the Tax Convention concluded today between the Government of Spain and the Government of Morocco, the undersigned have agreed on the following declarations which form an integral part of the Convention.

The specialized agencies to cooperate in the economic development of Morocco, which fall within the scope of Article 23 of this Convention, are:

– Caisse Nationale de Credit Agricole

– Fonds d'Equipement Communal

– Office Cherifien des Phosphates

– Regional Agricultural Development Offices

– Office of Mining Research and Holdings

– Office de Development Industriel

– Office National des Chemins de Fer

– Office de Commerceisation et d'Exportation

– Regie d'Aconage du Port de Casablanca

– Property and Hotel Credit Fund (C.I.H.)

– National Bank for Economic Development

– Banque Centrale Populaire

– Maroc-Chimie

– Complexe Textile de Fes «COTEF»

– Societe Cherifienne de Petroleum S.C.P.

– Moroccan–Italian Refining Company (SAMIR)

– Compagnie Marocaine de Navigation ‘COMANAV’

– Royal Air Maroc ‘RAM’

– Company for the Exploitation of Kettara Pyrrhotite (SEPYK) [the company name is affected by source OCR].

– Rif Iron Mining Company (SEFERIF)

– Lignes Maritimes du Detroit «Limited»

– Societe Nationale de Siderurgie ‘SONASID’

– Office National des Peches

The Head of Language Interpretation

I certify that, having compared the previous translation with its original, in French, and registered in this office with number 1/979, it is satisfied, with the exception of the corrections made in pencil in the document and those contained in the attached note accompanying that document.

Madrid, January 10, 1979.

Madrid, 7 February 1984.

H.E. Sir. Ambassador of the Kingdom of Morocco to Madrid.

Ambassador,

I have the honour to acknowledge receipt of your letter dated 13 December 1983, the text of which is reproduced below:

I have the honour to refer to the Convention on the Prevention of Double Taxation of Income and Property Taxes, signed on 10 July 1978 between our two countries, and in accordance with the discussions held in this regard on the desirability of amending article 2, paragraph 3, of that Convention, in order to bring it into line with the legislation currently in force in our two countries, I am pleased to propose the following new wording for article 2, paragraph 3, of the Convention:

3. The current taxes to which this Article specifically applies are:

As regards Morocco

1) Professional profit tax and investment reserve.

(2) The tax on public and private salaries, diets and emoluments, wages, pensions and lifetime income.

(3) Urban contribution and related contributions.

(4) The agricultural tax.

(5) The supplementary contribution on the overall income of natural persons.

(6) The tax on the products of shares or shares and similar income.

(7) Patent tax.

(8) The rate on real estate gains.

(9) Participation in national solidarity.

As regards Spain

(1) Income tax on natural persons.

(2) Corporate tax.

(3) The property tax.

I beg you, Minister, to confirm to me your government's acceptance of the foregoing. This note and its reply shall constitute an agreement between our two Governments, which shall enter into force on the same date as the Convention to which it amends.

I have the honour to express to V.E. the agreement of the Spanish Government with the above text.

I take this opportunity, Ambassador, to reiterate to you the assurance of my highest consideration.

Fernando Morán,

Minister for Foreign Affairs

Madrid, December 13, 1983.

The Ambassador of the Kingdom of Morocco to Madrid to the Minister for Foreign Affairs, Madrid.

Subject: Agreement between Spain and the Kingdom of Morocco to prevent double taxation of income and property taxes.

Minister:

I have the honour to refer to the Convention on the Prevention of Double Taxation of Income and Property Taxes, signed on 10 July 1978 between our two countries, and in accordance with the discussions held in this regard in particular on the desirability of amending article 2, paragraph 3, of that Convention, in order to bring it into line with the legislation currently in force in our two countries, I am pleased to propose the following new wording for article 2, paragraph 3, of the Convention:

3. The current taxes to which this Article specifically applies are:

As regards Morocco

1) Professional profit tax and investment reserve.

(2) The tax on public and private salaries, diets and emoluments, wages, pensions and lifetime income.

(3) Urban contribution and related contributions.

(4) The agricultural tax.

(5) The supplementary contribution on the overall income of natural persons.

(6) The tax on the products of shares or shares and similar income.

(7) Patent tax.

(8) The rate on real estate gains.

(9) Participation in national solidarity.

As regards Spain

(1) Income tax on natural persons.

(2) Corporate tax.

(3) The property tax.

I would ask you, Minister, to confirm your Government's acceptance of the foregoing. This note and its reply shall constitute an agreement between our two Governments, which shall enter into force on the same date as the Convention to which it amends.

I take this opportunity to express to you the testimony of my high consideration.

Abdelhafid Kadiri,

Ambassador of the Kingdom of Morocco

This Convention shall enter into force on 16 May 1985, 30 days after the exchange of instruments of ratification, as provided for in Article 28. The exchange of instruments of ratification took place in Rabat on 16 April 1985.

What is made public for general knowledge.

Madrid, May 10, 1985. –The Technical Secretary General of the Ministry of Foreign Affairs, Fernando Perpiña-Robert Peyra.