Tunisia

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

1. This Convention shall apply to income and property taxes payable by each Contracting State, its administrative subdivisions or local authorities, whatever the system of its levy.

2. Taxes on income and property shall be deemed to be taxes on all or any part of the income or property, including taxes on profits derived from the disposal of movable or immovable property, taxes on all wages paid by the Companies, as well as taxes on capital gains.

3. The current taxes to which this Convention applies are:

(a) In Spain:

The Income Tax of Physical Persons.

The Company Tax.

The Wealth Tax.

(hereinafter referred to as ‘Spanish tax’)

(b) In Tunisia:

The Patent Tax.

The Tax on Benefits of Non-Commercial Professions.

The Salary and Salary Tax.

The Agricultural Tax.

The Real Estate Income Tax.

The Income Tax on Loans, Deposits, Bonds and Current Accounts.

The Real Estate Plus Value Tax. The Exceptional Contribution of Solidarity. Local taxes.

The Personal Contribution of State.

(hereinafter referred to as ‘Tunisian tax’)

4. This Convention shall also apply to future taxes of an identical or similar nature which are added to or replaced by existing taxes. The competent authorities of the Contracting States shall notify each other of any changes made to their respective tax laws.

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

(a) The term ‘Spain’ means the Spanish State and the areas adjacent to the territorial waters of Spain over which, in accordance with international law, Spain may exercise the rights relating to the maritime seabed and subsoil and its natural resources.

(b) 'Tunisia' means the Republic of Tunisia and the areas adjacent to the territorial waters of Tunisia over which Tunisia may, in accordance with international law, exercise the rights relating to the maritime seabed and subsoil and its natural resources.

(c) The terms ‘one Contracting State’ and ‘another Contracting State’ refer, depending on the context, to Spain or Tunisia.

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

(e) The term ‘Society’ means any legal person or entity that is considered a legal person for tax purposes.

(f) 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.

(g) The term ‘national’ means:

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

(ii) Any legal person, company of persons and associations established under the law in force in a Contracting State.

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

(i) ‘competent authority’ means:

(i) In Spain, the Minister of Finance, the Technical Secretary-General or another authority to which the Minister delegates.

(ii) In Tunisia, the Minister of Plan and Finance or other authority to which the Minister delegates.

2. For the purposes of the application of the Convention by a Contracting State, any expression not otherwise defined shall, unless in its context there is a different interpretation, have the meaning attributed to it by the law of that State concerning 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, place of address or any other criterion of a similar nature. However, this term shall not include persons who are subject to taxation in this State solely for the income they obtain from sources located in that State or for the assets they possess in that State.

2. Where, pursuant to the provisions of paragraph 1, a natural person is resident in both Contracting States, the case shall be settled according to the following rules:

(a) This person shall be considered a resident of the Contracting State where he or she has permanent housing at his or her disposal; if he or she has permanent housing at his or her disposal in both States, he or she shall be considered a resident of the State with which he or she has closer personal and economic relations (centre of vital interests).

(b) If the State in which that person has the centre of his or her vital interests cannot be determined, or if he or she does not have permanent housing at his or her disposal in either State, he or she shall be considered a resident of the State in which he or she habitually lives.

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

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

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

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

2. The term ‘permanent establishment’ shall include in particular:

(a) A management headquarters.

(b) A branch office.

(c) One office.

(d) One factory.

(e) One workshop.

(f) A mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(g) A construction site or temporary assembly operations or supervision activities carried out on it where the work, operations or activities last more than nine months or where the temporary assembly operations or supervision activities resulting from the sale of machinery or equipment by the same Company have a duration of more than three months and the costs of assembly and supervision exceed 10 per cent of the price of the machinery or equipment.

3. The term ‘permanent establishment’ shall be deemed not to include:

(a) The use of facilities for the sole purpose of storing, displaying or delivering goods belonging to the Company.

(b) Maintenance of a warehouse of goods belonging to the Company for the sole purpose of storing, displaying or delivering them.

(c) The maintenance of a warehouse of goods belonging to the Company for the sole purpose of their processing by another Company.

(d) The maintenance of a fixed place of business for the sole purpose of purchasing goods or collecting information for the Company.

(e) The maintenance of a fixed place of business used by the Enterprise for the sole purpose of advertising, providing information, conducting scientific research or carrying out similar activities that are preparatory or auxiliary in nature.

4. A person acting in a Contracting State on behalf of an Enterprise of the other Contracting State, except in the case of an independent agent covered by paragraph 5, shall be deemed to constitute a permanent establishment in the State first mentioned if he or she habitually has and exercises in that State powers to conclude contracts on behalf of the Enterprise, unless his or her activities are limited to those referred to in paragraph 3.

5. An Enterprise of one Contracting State shall not be considered to have a permanent establishment in the other Contracting State merely because it carries out activities in that other State through a broker or a general commissioner enjoying an independent status provided that such persons act within the ordinary framework of their activity.

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 it carries out activities in that other State (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 income from agricultural or forestry holdings, may be taxed in the Contracting State in which such property is situated.

2. For the purposes of this Convention, the term ‘real property’ shall have the meaning attributed to it by the Law of the Contracting State in which the property in question is situated. In any event, this term includes accessories, livestock and equipment used on agricultural and forestry holdings, rights to which the provisions of private law relating to real estate, the use of immovable property and rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other land resources apply. Ships and aircraft are not considered real property.

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

4. The provisions of paragraphs 1 and 3 also apply to income derived from the immovable property of an Enterprise, as well as to 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 in this State only, unless the enterprise carries out its business in the other Contracting State through a permanent establishment situated therein. If the Enterprise carries out or has carried 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 therein, 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 and dealing entirely independently with the Enterprise of which it is a permanent establishment shall be attributed to that establishment.

3. For the purpose of determining the benefit of a permanent establishment, deductible expenses incurred for the purposes of the permanent establishment, including management and general administrative expenses for the same purposes, whether incurred in the State where the permanent establishment is located or incurred elsewhere, shall be charged.

4. No benefit shall be attributed to a permanent establishment merely because it buys goods for the Company.

5. For the purposes of the preceding paragraphs, the profits attributable to the permanent establishment shall be calculated each year by the same method, unless there are valid and sufficient grounds for proceeding otherwise.

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

7. The income which a resident of a Contracting State obtains from a ‘Participation Association’ of a ‘Actual Company’ or from a Company subject to the compulsory tax transparency regime, acting in the other Contracting State, may be taxed in that other State.

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

2. If the place of effective management of a Maritime Navigation Enterprise is on the edge of a ship, it shall be deemed to be in the Contracting State where the base port of the ship is located and, if there is no such base port in the Contracting State in which the person operating the ship resides.

3. The provisions of paragraph 1 shall also apply to profits from participation in a pool, on a joint holding or in an international operating body.

1. When:

(a) An Enterprise of one Contracting State participates directly or indirectly in the direction, control or capital of an Enterprise of the other Contracting State; or

(b) The same persons participate directly or indirectly in the direction, control or capital of an Enterprise of one Contracting State and an Enterprise of the other Contracting State.

And in either case the two Companies are, in their commercial or financial relations, bound by accepted or imposed conditions that differ from those that would be agreed by independent Companies, the profits that would have been obtained by one of the Companies in the absence of these conditions, and which in fact did not occur because of them, may be included in the profits of this Company and subject to taxation accordingly.

1. Dividends paid by a Company resident of one Contracting State to a resident of the other Contracting State could 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 if the recipient of the dividends is the beneficial owner, the tax thus determined may not exceed:

(a) 5 per cent of the gross amount of the dividends, if the beneficial owner of the dividends is a company (other than a company of persons) holding directly at least 50 per cent of the capital of the company that pays the dividends.

(b) 15 per 100 of the gross amount of dividends in all other cases.

3. The competent authorities of the Contracting States shall, by mutual agreement, determine the methods of application of paragraph 2.

4. The provisions of paragraph 2 shall not affect the corporation's taxation of profits against which dividends are paid.

5. The term ‘dividends’ used in this Article includes the income from shares, shares or vouchers, parts of mines, parts of founders or other beneficiary parties, except credit, as well as income from other shareholdings subject to the same tax regime as income from shares under the law of the State in which the distribution company resides.

6. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, resident of one Contracting State, exercises in the other Contracting State, of which the Company that pays the dividends is resident, an industrial or commercial activity through a permanent establishment there situated, or an independent profession through a fixed base there, with which the share generated by the dividends is effectively linked. In this case, the provisions of Article 7 or Article 14 shall apply, as appropriate.

7. Where a Company resident of one Contracting State obtains profits or income from the other Contracting State, that other State may not require any tax on dividends paid by the Society, except to the extent that these dividends are paid to a resident of that other State or the share generated by the dividends is effectively linked to a permanent establishment or a fixed base located in that other State, or subject the undistributed profits of the Society to a tax on them, even if dividends paid or undistributed profits consist, in whole or in part, of profits or income from that other State.

8. Notwithstanding the provisions of paragraph 7 of this article, dividends distributed by a Company resident in a Contracting State having a permanent establishment in the other Contracting State may be taxed in that other State, to the extent that the profits obtained by the permanent establishment are in relation to the total accounting profit of the said company and to a rate of taxation which may not exceed 5 per 100.

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

2. However, these interests may also be taxed in the Contracting State from which they come and in accordance with the law of that State, but if the recipient of the interest is the beneficial owner, the tax thus required may not exceed 10 per cent of the gross amount of interest. However, this ceiling will be reduced to 5 per 100 in the event of interest arising from loans lasting more than seven years. The competent authorities of the Contracting States shall, by mutual agreement, determine the ways and means of applying this limitation.

3. The term ‘interest’ used in this Article includes income from claims of any kind, with or without mortgage guarantees or a benefit-sharing clause of the debtor, and in particular income from public funds and loan obligations including premiums and lots attached to such securities. Penalties for late payment shall not be considered as interest within the meaning of this Article.

4. Paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, resident of a Contracting State, exercises in the other Contracting State from which the interest derives an industrial or commercial activity through a permanent establishment there located, or an independent profession through a fixed base there, with which the credit generated by the interest is effectively linked. In this case, the provisions of Article 7 or Article 14 shall apply as appropriate.

5. Interests shall be considered as originating in a Contracting State where the debtor is the State itself, a political subdivision, a local community or a resident of that State. However, where the debtor of interest, whether or not resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed basis in respect of which the debt giving rise to the payment of the interest and bearing the burden of the interest has been incurred, the interest shall be deemed to be from the State where the permanent establishment or fixed base is located.

6. Where due to special relations between the debtor and the beneficial owner or between them and third parties, the amount of interest paid, having regard to the claim for which it is paid, exceeds that agreed by the debtor and the beneficial owner in the absence of such relationships, the provisions of this article shall apply only to the latter amount. In this case, the excess shall be taxable in accordance with the law of each Contracting State and taking into account the other provisions of this Convention.

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

2. However, these fees may also be subject to taxation 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 such fees, provided that they are subject to taxation in the other Contracting State.

3. The term ‘royalties’ used in this Article means remuneration of any kind paid for the use or grant of a copyright, patent, trademark or trade mark, design, plan, formula or secret procedure, as well as for the use or grant of use of industrial, commercial or scientific equipment, for studies and information relating to experiences acquired in the industrial, commercial or scientific field; this term also includes remuneration of any kind relating to cinematographic films and recorded works on magnetoscopic films and bands intended for television.

4. Paragraphs 2 and 3 shall not apply if the beneficiary of the royalties, resident of one Contracting State, exercises in the other Contracting State, from which the royalties come, a commercial or industrial activity through a permanent establishment there situated or a liberal profession through a fixed base there, with which the right or ownership for which the royalties are paid is effectively linked. In this case, the provisions of Article 7 or Article 14 shall apply as appropriate.

5. 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 shall be taxable in accordance with the law of each Contracting State and taking into account the other provisions of this Convention.

6. ‘royalties’ shall be considered as coming from a Contracting State where the debtor is the State itself, a political subdivision, a local community or a resident of that State. However, where the debtor of the ‘royalties’ is resident or not resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed basis on which the contract giving rise to the payment of the fees and bearing the burden thereof has been concluded, they shall be deemed to be from the State where the permanent establishment or the fixed base is situated.

1. Profits that a resident of one Contracting State obtains from the disposal of immovable property, as defined in article 6, located in the other Contracting State, may be taxed in that other State.

2. Gains arising 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 an independent profession, including gains arising from the alienation of that permanent establishment (only or with the Enterprise as a whole) or from that fixed base, may be taxed in that other State.

3. Profits arising from the alienation of ships or aircraft operated in international traffic or movable property affected by the operation of such vessels or aircraft may be taxed only in the Contracting State where the effective headquarters of the Enterprise is located.

4. Profits arising from the disposal of any property other than those referred to in paragraphs 1, 2 and 3 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 exercise of a liberal profession or other activities of an independent nature may be taxed in that State only, unless the resident habitually has a fixed basis in the other Contracting State for the exercise of his or her activities. If it has such a fixed base, the income may be taxed in the other State, but only to the extent that it is attributable to this fixed base.

2. The term "liberal profession" includes, in particular, independent scientific, literary, artistic, educational or pedagogical activities, as well as independent activities of Physicians, Lawyers, Engineers, Architects, Dentistry and Accountants.

1. Without prejudice to articles 16, 18 and 19, salaries, wages and similar remuneration obtained by a resident of a Contracting State on the basis of wage employment may be subject to taxation in that State only, unless the employment is exercised in the other Contracting State. If employment is exercised in the latter State, the remuneration received for this purpose may be taxed in the other State.

2. Notwithstanding paragraph 1, remunerations earned by a resident of a Contracting State on the basis of a wage employment in the other Contracting State may be imposed in the first Contracting State only if:

(a) The recipient does not remain in total in the other State, for one or more periods, more than one hundred and eighty-three days during the fiscal year concerned; and

(b) Remuneration is paid by a Patron or a Patron who is not a resident of the other State; and

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

3. However, the preceding 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 effective headquarters of the Enterprise is located.

Participations, assistance and other similar remunerations obtained by a resident of a Contracting State as a member of a Board of Directors or of a similar 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 7, 14 and 15, the rents obtained by the professionals of the spectacle, such as theatre, cinema, radio or television artists and musicians, as well as by sportsmen, for their personal activities in this regard may be subject to taxation in the Contracting State in which they act.

2. Notwithstanding the provisions of Articles 7, 14 and 15, where the income derived from the activities carried out by an artist of the spectacle or sportsman himself is attributed not to the artist himself or to another person, such income may be taxed in the Contracting State in which the activities of the artist or sportsman are carried out.

Without prejudice to article 19, paragraph 2, pensions and other similar remuneration paid to a resident of a Contracting State on account of previous employment 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 this subdivision or Entity, may be subject to taxation only in that State.

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

(i) Possession of the nationality of that State; or

(ii) Has not acquired the status of resident of this State only for the purpose of providing services.

2. (a) Pensions paid by a Contracting State or by one of its political subdivisions or Local Entities to a natural person on account of services rendered to that State or to this subdivision or Entity may only be subject to taxation in that State.

(b) However, such pensions may be subject to taxation in the other Contracting State only if the natural person is a resident and a national of that State.

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

The amounts received to cover the costs of maintenance, study or training, a student or a trainees 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 studies or training, may not be subject to taxation in that State, provided that they come from sources outside that State.

1. The income of a resident of a Contracting State, whatever the source of the income, not referred to in the previous articles of this Convention may be taxed only in that State.

2. Paragraph 1 shall not apply to income other than that derived from property defined as immovable in article 6, paragraph 2, where the beneficiary of such income, resident of a Contracting State, engages in an industrial or commercial activity in the other Contracting State through a permanent establishment situated therein or pursues an independent profession by means of a fixed base, also situated therein, with which the right or ownership for which the income is paid is effectively linked. In such cases, the provisions of Article 7 or Article 14 shall apply, as appropriate.

1. Property consisting of immovable property, covered by article 6, owned by a resident of a Contracting State and located in the other Contracting State, may be taxed in that other State.

2. Property consisting 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 of movable property belonging to a fixed basis which a resident of one Contracting State has in the other Contracting State for the exercise of an independent profession, may be subject to taxation in that other State.

3. Assets consisting of ships or aircraft operated in international traffic as well as movable property affected by the operation of such vessels or aircraft may be taxed only in the Contracting State in which the effective headquarters 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. Double taxation shall be avoided as follows:

(A) Where a resident of a Contracting State obtains income or possesses assets which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first State shall deduct:

(a) Of the tax levied on the income of that resident, an amount equal to the tax paid in the other State; and

(b) Tax on the assets of that resident, equal to the property tax paid in the other State.

In either case, this deduction may not exceed the amount of tax levied on income or wealth, calculated before the corresponding deduction, as the case may be, on income or wealth, which may be taxed in the other State.

(B) Where, in accordance with the provisions of the Convention, the income received by a resident of a Contracting State, or the property he possesses, is tax-exempt in that State, the State may, however, take into account the income or wealth exempted for the purpose of calculating the amount of tax on the rest of the income or property of that resident.

2. (A) For the implementation of paragraph 1. (a) in this Article, the term 'tax paid' in Tunisia by a resident of Spain shall mean any total amount of Tunisian taxes which would have been payable for any year, if there had been no exemption or reduction of the tax applicable to that year or part thereof, under the Tunisian legislation listed below:

Law 69-35.

Law 72-38.

Law 81-56.

To the extent that these Acts were in force at the date of signature of this Convention and had not subsequently been amended or had been amended in secondary respects that did not affect their general character.

(B) For the implementation of paragraph 1. (a) in this Article the term 'tax paid' in Spain by a resident of Tunisia shall mean any amount of Spanish taxes which would have been payable for any year in the event that there had been no exemption or reduction of the tax, in accordance with the provisions of Article 25, (c), paragraphs 1 and 2 of Law 61/1978 of 27 December 1978, to the extent that they were in force on the date of signature of the present and had not been subsequently modified or in secondary respects which do not affect their general character.

(C) The arrangements provided for in paragraphs A and B of this Article shall apply to any subsequent provision granting exemption or reduction of taxes, which is, according to the competent authorities of the Contracting States, of a similar nature, if it has not been subsequently amended or has been amended in secondary respects which do not affect its general character.

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. Notwithstanding article 1, this provision also applies to persons who are not residents of a Contracting State or of the two Contracting States.

2. A permanent establishment which an Enterprise of one Contracting State has in the other Contracting State shall not be subject to taxation in that State, in a less favourable manner than the Enterprises of that other State carrying out the same activities. This provision may not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State the personal deductions, reliefs and tax deductions it grants to its own residents in view of their marital status or family burdens.

3. Unless the provisions of article 9, paragraph 1, article 11, paragraph 6, or article 12, paragraph 5, apply, interest, royalties or other expenses paid by an Enterprise of one Contracting State to a resident of the other Contracting State shall be deductible to determine the profits subject to taxation of this Enterprise under the same conditions as if they had been paid to a resident of the former State. Similarly, the debts of an Enterprise of one Contracting State relating to a resident of the other Contracting State are deductible for the determination of the taxable assets of this Company, under the same conditions as if they had been contracted with a resident of the former State.

4. Enterprises of one Contracting State, whose capital is wholly or partly, directly or indirectly detained or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any tax or obligation relating thereto which is not or is more burdensome than those to which the other Similar Enterprises of the first Contracting State are or may be subject.

5. Notwithstanding the provisions of Article 2, the provisions of this Article shall apply to taxes of any kind or name.

1. Where a person considers that the measures taken by one or both Contracting States imply or may entail for him an imposition that is not in conformity with the provisions of this Convention, irrespective of the remedies provided for by the domestic law of those States, he may submit his case to the competent authority of the Contracting State of which he is a resident.

2. The competent authority, if it considers the complaint well founded and if it is not in a position to adopt a satisfactory solution itself, shall make every effort to resolve the matter by amicable agreement with the competent authority of the other Contracting State, in order to avoid an imposition that does not comply with this Convention.

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

4. The competent authorities of the Contracting States may communicate directly with each other in order to reach agreement, as indicated in the preceding paragraphs. Where such an agreement can be facilitated by personal contacts, the exchange of views may take place within a Commission composed of representatives of the competent authorities of the Contracting States.

1. The competent authorities of the Contracting States shall exchange the information necessary to implement the provisions of this Convention, or of the domestic law of the Contracting States, relating to taxes covered by the Convention, to the extent that the taxation required by that Convention is not contrary to the Convention. Information exchanged shall be kept secret and may be communicated only to persons or authorities responsible for the management or collection of taxes covered by the Convention.

2. In no case can the provisions of paragraph 1 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.

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

1. This Convention shall be ratified and the Instruments of Ratification shall be exchanged as soon as possible.

2. The Convention shall enter into force on the basis of the exchange of instruments of ratification, and its provisions shall apply, for the first time, to income obtained from 1 January following its entry into force.

This Convention shall remain in force until it is denounced by one of the Contracting States. Any Contracting State may denounce the Convention by diplomatic means, at least six months before the end of each calendar year following the third year following the year of ratification. In this case, the Convention will last apply to income obtained before 1 January following the denunciation.

In faith, the undersigned, duly authorized for this purpose, sign this Convention.

Done in double copy, in Madrid on 2 July 1982, in French.

This Convention entered into force on 14 February 1987, the date of the exchange of instruments of ratification, as provided for in Article 28.

What is made public for general knowledge.

[ignore]Madrid, February 23, 1987.–The Technical Secretary General of the Ministry of Foreign Affairs, José Manuel Paz y Agüeras.