Colombia

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

1. This Convention applies to income and property taxes payable by each of the Contracting States, their political subdivisions or their local entities, whatever the system of their levy.

2. Income and property taxes are those that tax all or any part of the income or property, including taxes on profits resulting from the disposal of movable or immovable property, taxes on the amount of wages or salaries paid by enterprises, as well as taxes on capital gains.

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

(a) in Spain:

(i) Personal Income Tax;

(ii) corporation tax;

(iii) the non-resident income tax;

(iv) the assets tax; and

(v) local income and property taxes;

(hereinafter referred to as ‘the Spanish tax’).

(b) In Colombia:

(i) Income and Supplementary Tax;

(ii) the property tax;

(hereinafter referred to as ‘Colombian tax’).

4. The Convention shall also apply to taxes of an identical or similar nature which are established after the signature of the Convention and which are added to or replaced by existing taxes. The competent authorities of the Contracting States shall communicate to each other any amendments 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 Kingdom of Spain and, used geographically, includes the territory of the Kingdom of Spain, including its internal waters and territorial sea, as well as maritime areas outside the territorial sea over which, under its domestic law and in accordance with international law, Spain exercises or may exercise in the future rights of sovereignty or jurisdiction over the seabed, its subsoil and superjacent waters, and its natural resources, as well as airspace and electromagnetic spectrum;

(b) the term ‘Colombia’ means the Republic of Colombia and, used geographically, includes also the mainland, the archipelago of San Andrés, Providencia and Santa Catalina, the island of Malpelo and other islands, islets, cays, morros, and banks belonging to it, as well as subsoil, territorial sea, contiguous area, continental shelf, exclusive economic zone, airspace, electromagnetic spectrum or any other space where it exercises or may exercise sovereignty, in accordance with international law or Colombian law;

(c) the words ‘one Contracting State’ and ‘the other Contracting State’ mean Spain or Colombia, depending on the context;

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

(e) the term 'company' means any legal person or any entity which is considered a legal person for tax purposes;

(f) the term ‘undertaking’ applies to the operation of any business;

(g) the words 'undertaking of a Contracting State' and 'undertaking of the other Contracting State' mean, respectively, an undertaking operated by a resident of a Contracting State and an undertaking operated by a resident of the other Contracting State;

(h) 'international traffic' means any transport carried out by a ship or aircraft operated by an undertaking whose effective head office is situated in a Contracting State, except where the ship or aircraft is operated only between points situated in the other Contracting State;

(i) the expression ‘competent authority’ means:

(i) in Spain, the Minister of Economy and Finance or his authorised representative;

(ii) in Colombia, the Minister of Finance and Public Credit;

(j) the term 'national' means:

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

(ii) a legal person or other corporation or association incorporated under the law in force in a Contracting State;

(k) the term 'business' includes the provision of professional services as well as any other activity of an independent nature.

2. For the purposes of the application of the Convention at any time by a Contracting State, any term or expression not defined in the Convention shall, unless a different interpretation is in conflict with that context, have the meaning attributed at that time to it by the law of that State relating to the taxes which are the subject of the Convention, the meaning attributed by the tax law to which it would result from other branches of the law of that State being prevalent.

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, seat of address or any other criterion of a similar nature, including also that State and its political subdivisions or local entities. This term does not, however, include persons who are subject to taxation in that State solely on the income they obtain from sources located in that State, or on the property situated therein.

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

(a) Such person shall be considered a resident of the 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 the 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 any of the States, he or she shall be considered a resident of the State in which he or she habitually lives;

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

(d) if he is a national of both States 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 shall be considered a resident of the State in which his 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 undertaking carries out all or part of its activity.

2. The term ‘permanent establishment’ includes, inter alia:

(a) the head offices;

(b) branches;

(c) Offices;

(d) factories;

(e) workshops; and

(f) mines, oil or gas wells, quarries or any other place of extraction of natural resources.

3. A work or a construction or installation project only constitutes a permanent establishment if its duration exceeds six months.

4. Notwithstanding the previous provisions of this Article, it is considered that the term ‘permanent establishment’ does not include:

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

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

(c) the maintenance of a deposit of goods or goods belonging to the undertaking for the sole purpose of processing by another undertaking;

(d) the maintenance of a fixed place of business for the sole purpose of buying goods or goods, or collecting information, for the enterprise;

(e) the maintenance of a fixed place of business for the sole purpose of carrying out any other auxiliary or preparatory activity for the undertaking;

(f) the maintenance of a fixed place of business for the sole purpose of carrying out any combination of the activities referred to in subparagraphs (a) to (e), provided that the whole activity of the fixed place of business resulting from that combination retains its auxiliary or preparatory character.

5. By way of derogation from paragraphs 1 and 2, where a person, other than an independent agent to which paragraph 6 applies, acts on behalf of an undertaking and has and exercises habitually in a Contracting State powers to conclude contracts on behalf of the undertaking, that undertaking shall be deemed to have a permanent establishment in that State in respect of the activities carried out by that person for the undertaking, unless the activities of that person are limited to those referred to in paragraph 4 and if they have been carried out through a fixed place of business, they have not determined the consideration of that fixed place of business as a permanent establishment in accordance with the provisions of that paragraph.

6. It is not considered that an undertaking has a permanent establishment in a Contracting State merely because it carries out its activities in that State through a broker, a general commissioner or any other independent agent, provided that such persons act within the ordinary framework of their activity and that transactions between the agent and the undertaking have been carried out under independent conditions in comparable transactions.

7. The fact that a company resident of a Contracting State controls or is controlled by a company resident of the other Contracting State, or that it engages in business activities in that other State (whether by permanent establishment or otherwise), does not by itself make any of these companies permanent establishment of the other State.

1. Income from immovable property (including income from agricultural or forestry holdings) situated in the other Contracting State may be taxed in that other Contracting State.

2. The term ‘real property’ shall have the meaning attributed to it by the law of the Contracting State in which the property is situated. In any event, that term includes property attached to immovable property, livestock and equipment used on agricultural and forestry holdings, the rights to which private law provisions relating to real estate apply, the use of immovable property and the right to receive fixed or variable payments in exchange for exploitation, or the granting of exploitation, of mineral deposits, sources and other natural resources. Ships, vessels and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 are applicable to income derived from direct use, lease or shareholding, as well as from 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.

1. The profits of an undertaking in a Contracting State may be taxed only in that State unless the undertaking carries out its business in the other Contracting State through a permanent establishment situated therein. If the undertaking does so, the profits of the undertaking may be taxed in the other State, but only to the extent that they are attributable to that permanent establishment.

2. Without prejudice to the provisions of paragraph 3, where an undertaking of a Contracting State carries out its business in the other Contracting State by means of a permanent establishment situated therein, in each Contracting State the profits it could have obtained from being a separate and separate undertaking carrying out the same or similar activities shall be attributed to that permanent establishment under the same or similar conditions and shall deal entirely independently with the undertaking from which it is a permanent establishment.

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

4. No profits shall be attributed to a permanent establishment by reason of the mere purchase of goods or goods by that permanent establishment for the enterprise.

5. For the purposes of the preceding paragraphs, the profits attributable to the permanent establishment shall be determined 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.

1. Profits from the operation of ships or aircraft in international traffic may be taxed only in the Contracting State in which the effective head office of the undertaking is situated.

2. If the place of effective management of a shipping undertaking is on board a ship, it shall be deemed to be located in the Contracting State where the base port of the ship is located, or if there is no such base port, in the Contracting State of which the person operating the ship is resident.

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

1. When

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

(b) the same persons participate directly or indirectly in the direction, control or capital of an undertaking of one Contracting State and of an undertaking of the other Contracting State, and in either case the two undertakings are, in their commercial or financial relations, bound by accepted or imposed conditions which differ from those agreed by independent undertakings, the profits which would have been obtained by one of the undertakings in the absence of such conditions, and which in fact have not been made because of them, may be included in the profits of that undertaking and may be subject to taxation accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State - and consequently subjects to taxation - the profits on which an enterprise of the other State has been taxed in that other Contracting State, and that other State recognizes that the profits thus included are profits that would have been realized by the enterprise of the State concerned in the first place if the terms agreed between the two companies had been those agreed between independent companies, that other State shall make the adjustment that would result in the amount of the tax that has taxed those profits. In determining such adjustment, account shall be taken of the other provisions of this Convention and the competent authorities of the Contracting States shall be consulted where necessary.

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 subject to taxation in the Contracting State in which the company paying the dividends resides and in accordance with the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax thus required may not exceed:

(a) 5 per 100 of the gross amount of dividends.

(b) 0 per 100 of the gross amount of the dividends if the beneficial owner is a company holding directly or indirectly at least 20 per 100 of the capital of the company paying the dividends.

This paragraph does not affect the company's taxation of the profits from which dividends are paid.

3. The term ‘dividends’ within the meaning of this Article means the income from shares, shares or enjoyment bonds, parts of mines, parts of founders or other rights, except credit rights, which allow participation in profits, as well as income from other social shares subject to the same tax regime as the income from shares under the law of the State of which the distribution company is resident.

4. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, resident of one Contracting State, carries out in the other Contracting State, of which the company paying the dividends is resident, a business activity through a permanent establishment located there, and the shareholding generated by the dividends is effectively linked to that permanent establishment. In such a case, the provisions of Article 7 apply.

5. 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 company, except to the extent that such dividends are paid to a resident of that other State or the share generated by the dividends is effectively linked to a permanent establishment located in that other State, or subject the undistributed profits of the company 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, such interest may also be taxed in the Contracting State from which it comes and in accordance with the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax thus required may not exceed 10 per cent of the gross amount of interest.

3. Notwithstanding paragraph 2, interest from one Contracting State and paid to a resident of the other Contracting State may be taxed in that other State only if:

(a) the beneficial owner is a Contracting State, one of its political subdivisions or one of its local entities; or

(b) interest is paid in connection with the sale on credit of goods or equipment to an undertaking of a Contracting State; or

(c) interest is paid by credit granted by a bank or by another credit institution resident in a Contracting State.

4. The term ‘interest’ within the meaning of this Article means income from claims of any kind, with or without a mortgage guarantee or a benefit-sharing clause of the debtor, and in particular income from public securities and income from bonds or bonds, including premiums and lots attached to such securities, as well as any other income subject to the same regime as income from capital provided by the tax legislation of the State from which the income comes. Penalizations for late payment are not considered interest for the purposes of this article.

5. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the interest, resident of one Contracting State, carries out in the other Contracting State, from which the interest derives, a business activity through a permanent establishment located in that other State, and the credit generated by the interest is effectively linked to that permanent establishment. In such a case, the provisions of Article 7 shall apply.

6. Where due to special relations between the debtor and the beneficial owner, or between them and third parties, the amount of interest in the light of the claim for payment exceeds that 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 such a 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. Royalties or royalties from one Contracting State and the beneficial owner of which is a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties or royalties may also be subject to taxation in the Contracting State from which they come and in accordance with the law of that State, but if the beneficial owner of the royalties or royalties is a resident of the other Contracting State, the tax thus required may not exceed 10 per cent of the gross amount of the royalties or royalties.

3. The term ‘royalties or royalties’ within the meaning of this Article means the amounts of any kind paid for the use, or the granting of use, of copyrights on literary, artistic or scientific works, including cinematographic films or films, tapes and other means of reproduction of the image and sound, patents, trademarks or trade marks, designs, plans, formulas or secret procedures, or for the use, or the granting of use, of industrial, commercial or scientific equipment, or for information relating to industrial, commercial or scientific experience. Services provided by technical assistance, technical services and consultancy services will be considered included in this concept.

4. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the royalties or royalties, resident of one Contracting State, carries out in the other Contracting State, from which the royalties or royalties come, an industrial or commercial activity through a permanent establishment located in that other State, and the right or for which the royalties or royalties are paid is effectively linked to that permanent establishment. In such cases the provisions of Article 7 shall apply.

5. Royalties or royalties shall be deemed to come from a Contracting State where the debtor is a resident of that State. However, where the debtor of the royalties or royalties, whether or not he is a resident of a Contracting State, has in one of the Contracting States a permanent establishment in respect of which the obligation to pay the royalties has been entered into and which bears the burden thereof, such royalties or royalties shall be deemed to come from the State in which the permanent establishment is situated.

6. Where, by reason of the special relations between the debtor and the beneficial owner of the royalties or royalties, or of which both have with third parties, the amount of the royalties or royalties in view of the use, right or information for which they are paid exceeds that for which the debtor and beneficial owner would have agreed in the absence of such relationships, the provisions of this article shall apply only to the latter amount. In such a 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 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 from the disposal of movable property forming part of the assets of a permanent establishment held by an undertaking of one Contracting State in the other Contracting State, including gains from the disposal of that permanent establishment (either with the enterprise as a whole or with the enterprise as a whole), may be taxed in that other Contracting State.

3. Profits arising from the disposal of ships or aircraft operated in international traffic or from movable property affected by the operation of such vessels or aircraft may be taxed only in the Contracting State in which the effective head office of the undertaking is situated.

4. Profits that a resident of a Contracting State obtains from the disposal of shares or other rights of participation the value of which is derived directly or indirectly in more than 50 per cent of immovable property located in the other Contracting State may be taxed in that other State.

5. Profits resulting from the disposal of any property other than those referred to in paragraphs 1, 2, 3 and 4 may be taxed only in the Contracting State in which the transferor resides.

1. Without prejudice to articles 15, 17 and 18, salaries, wages and other similar remuneration obtained by a resident of a Contracting State on account of employment may be subject to taxation in that State only unless the employment is exercised in the other Contracting State. If the employment is thus exercised, the remuneration derived therefrom may be subject to taxation in that other State.

2. By way of derogation from paragraph 1, remuneration obtained by a resident of a Contracting State on the basis of employment in the other Contracting State may be taxed only in the State referred to above if:

(a) the recipient remains in the other State for a period or periods of not more than 183 days together in any period of twelve months beginning or ending in 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; and

(c) Remuneration is not borne by a permanent establishment held by the employer in the other State.

3. Notwithstanding the preceding provisions of this Article, remunerations earned on account of employment on board a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the effective head office of the undertaking is situated.

Shareholdings and other similar remunerations which a resident of a Contracting State obtains as a member of a Board of Directors of a company resident of the other Contracting State may be taxed in that other State.

1. By way of derogation from Articles 7 and 14, any income which a resident of a Contracting State obtains from the exercise of his personal activity in the other Contracting State as a performer, theatre, cinema, radio or television actor, or musician, or as an athlete, may be subject to taxation in that other State.

2. Notwithstanding the provisions of Articles 7 and 14, where the income derived from the personal activities of the performing artists or sportsmen, in that capacity, is attributed not to the performer himself or to another person, such income may be subject to taxation in the Contracting State where the activities of the performing artist or sportsman are carried out.

Without prejudice to Article 18(2), pensions and similar remuneration paid to a resident of a Contracting State on account of previous employment may only be taxed in that State.

1.

(a) Salaries, salaries and other similar salaries, excluding pensions, paid by a Contracting State or by one of its political subdivisions or local entities to a natural person for services rendered to that State or to that subdivision or entity, may only be subject to taxation in that State.

(b) Such salaries, salaries and similar 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) is a national of that State; or

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

2.

(a) Pensions paid by a Contracting State or by one of its political subdivisions or local entities, either directly or from constituted funds, to a natural person on account of services rendered to that State or to that subdivision or entity, may only be subject to taxation in that State.

(b) Such pensions may, however, 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 14, 15, 16 and 17 apply to salaries, salaries and other similar remuneration, and to pensions, paid for services rendered in the context of an entrepreneurial activity carried out by a Contracting State or by one of its political subdivisions or local authorities.

The amounts received to cover the costs of maintenance, study or practical training by a student or a trainees who is, or was, immediately before arriving in a Contracting State, resident of the other Contracting State and who is in the State referred to first for the sole purpose of continuing his studies or practical 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 its source, not referred to in the previous articles of this Convention, shall be subject to taxation only in that State.

2. Paragraph 1 does not apply to income, other than that derived from immovable property within the meaning of Article 6(2), where the beneficiary of such income, resident of a Contracting State, carries out an entrepreneurial activity in the other Contracting State through a permanent establishment situated in that other State, and the right or for which the income is paid is effectively linked to that permanent establishment. In such a case, the provisions of Article 7 apply.

1. Property constituted by immovable property within the meaning of Article 6, which has a resident of one Contracting State and is situated 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 undertaking of one Contracting State in the other Contracting State may be taxed in that other Contracting State.

3. Assets made up of ships or aircraft operated in international traffic, as well as movable property affected by the operation of such vessels and aircraft, may be taxed only in the Contracting State in which the place of effective management of the undertaking is situated.

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

Double taxation shall be avoided either in accordance with the provisions imposed by its domestic law of the Contracting States or in accordance with the following provisions:

(a) Where a resident of a Contracting State obtains income or possesses assets which, in accordance with the provisions of this Convention, may be subject to taxation in the other Contracting State, the Contracting State referred to above shall, within the limitations imposed by its domestic law:

(i) the deduction or discount of the income tax of that resident in an amount equal to the income tax paid in the other Contracting State;

(ii) the deduction or discount of the property tax of that resident in an amount equal to the tax paid in the other Contracting State on those assets;

(iii) the deduction or discount of corporation tax actually paid by the company which distributes the dividends corresponding to the profits from which the dividends are paid, in accordance with its domestic law.

However, such deduction or discount may not exceed the part of income tax or property tax, calculated before deduction or discount, corresponding to the income or assets that may be taxed in the other Contracting State.

(b) Where, under any provision of this Convention, the income obtained by a resident of a Contracting State or the property held by him is exempt from taxation in that Contracting State, he may, however, take into account the income or wealth exempted in calculating the tax on the rest of the income or property of that resident.

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 under the same conditions, in particular with regard to residence, are or may be subject. Notwithstanding Article 1, this provision shall also apply to persons who are not residents of one or any of the Contracting States.

2. Permanent establishments held by an undertaking of one Contracting State in the other Contracting State shall not be subject to taxation in that State in a less favourable manner than undertakings 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 reductions it grants to its own residents in view of their marital status or family burdens.

3. Unless the provisions of Article 9(1) of Article 11(6) or Article 12(5) apply, the interest, royalties and other expenses paid by an undertaking of a Contracting State to a resident of the other Contracting State shall be deductible to determine the profits subject to taxation of that undertaking under the same conditions as if they had been paid to a resident of the State referred to first. Similarly, the debts of an undertaking of a Contracting State contracted with a resident of the other Contracting State shall be deductible for the determination of the assets subject to taxation of that undertaking under the same conditions as if they had been contracted with a resident of the State referred to in the first instance.

4. Undertakings of a Contracting State whose capital is wholly or partly owned or controlled, 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 tax or obligation relating thereto which is not or is more burdensome than those to which other similar undertakings of the State referred to in the first instance are or may be subject.

5. Notwithstanding Article 2, the provisions of this Article apply to all taxes irrespective of their nature or name.

1. Where a person considers that the measures taken by one or both Contracting States involve or may entail for him an imposition which 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 resident or, if Article 23(1) applies, to that of the Contracting State of which he is a national. The case must arise within three years of the first notification of the measure involving an imposition not in accordance with the provisions of the Convention.

2. The competent authority shall, if it considers the complaint well founded and if it is not in itself able to reach a satisfactory solution, make every effort to resolve the matter by means of an amicable agreement with the competent authority of the other Contracting State, in order to avoid an imposition which does not comply with this Convention. The agreement shall apply irrespective of the time limits laid down by the national law of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve any difficulties or 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 within the meaning of the preceding paragraphs. Where it is considered that this agreement may be facilitated by an oral exchange of views, it may be carried out through a committee composed of representatives of the competent authorities of the Contracting States.

1. The competent authorities of the Contracting States shall exchange information likely to be relevant to the application of this Convention, or to the administration or application of national law relating to taxes of any kind or designations required by the Contracting States, their political subdivisions or local authorities, to the extent that such taxation is not contrary to the Convention. The exchange of information is not limited by Articles 1 and 2.

2. Information received by a Contracting State pursuant to paragraph 1 shall be kept secret in the same manner as information obtained under the domestic law of that State and shall only be communicated to the persons or authorities (including courts and administrative bodies) responsible for the management or collection of taxes referred to in paragraph 1 of the declaratory or executive procedures relating to such taxes or for the resolution of appeals relating thereto. These persons or authorities shall use this information only for these purposes. They may disclose the information at public court hearings or in court judgements.

Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes, where such use is permitted by the laws of the State providing the information and is authorized by the competent authority thereof.

3. Under no circumstances may the provisions of paragraphs 1 and 2 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) to provide information which cannot be obtained on the basis of their own legislation or in the exercise of their normal administrative practice or that of the other Contracting State; and

(c) provide information revealing business, industrial, commercial or professional secrecy or an industrial process, or information the communication of which is contrary to public policy (ordre public).

4. If a Contracting State requests information pursuant to this Article, the other Contracting State shall use the measures available to it to gather information for the purpose of obtaining the information requested, even if that other State may not need such information for its own tax purposes. The above obligation is limited by paragraph 3 except where such limitations prevent a Contracting State from providing information solely because of the absence of national interest in it.

5. In no case shall the provisions of paragraph 3 be construed as allowing a Contracting State to refuse to provide information solely because it is held by banks, other financial institutions, or by any person acting in a representative or fiduciary capacity or because it relates to property rights in a person.

1. Contracting States shall assist each other in the collection of their tax claims. This assistance is not limited by Articles 1 and 2. The competent authorities of the Contracting States may, by mutual agreement, determine how this Article is to be applied.

2. The term ‘tax credit’ within the meaning of this Article means any amount due in respect of taxes of any kind or designation required by the Contracting States, their political subdivisions or their local authorities, to the extent that such taxation is not contrary to this Convention or to any other instrument to which the Contracting States are a party; the term also includes interests, administrative penalties and costs of collection or establishment of precautionary measures relating to that amount.

3. Where a tax debt of a Contracting State is due under the law of that State and the debtor is a person who, under the law of that State, cannot at that time prevent the recovery, at the request of the competent authorities of that State, the competent authorities of the other Contracting State shall accept such tax claim for the purposes of its recovery. That other State shall collect the tax claim in accordance with its legislation relating to the application and collection of its own taxes as if it were its own tax claim.

4. Where a tax claim of a Contracting State is of a nature such that that State may, under its domestic law, take precautionary measures to ensure its recovery, at the request of the competent authorities of that State, the competent authorities of the other Contracting State shall accept such debt for the purpose of adopting such precautionary measures. That other State shall take interim measures in accordance with the provisions of its law as if it were a tax claim of its own, even if at the time of application of such measures the tax claim was not enforceable in the State referred to first or its debtor was a person entitled to prevent its collection.

5. By way of derogation from paragraphs 3 and 4, a tax claim accepted by a Contracting State for the purposes of those paragraphs shall not be subject in that State to the requirement or priority applicable to tax claims under its domestic law because of the nature of that tax claim. Similarly, a tax claim accepted by a Contracting State for the purposes of paragraphs 3 or 4 shall not enjoy in that State the prelations applicable to tax claims under the law of the other Contracting State.

6. Proceedings concerning the existence, validity or amount of the tax claim of one Contracting State may not be initiated before the courts or administrative bodies of the other Contracting State.

7. Where at a time after the request for recovery made by a Contracting State pursuant to paragraphs 3 or 4, and prior to its recovery and referral by the other Contracting State, the tax claim ceases to be:

(a) in the case of an application under paragraph 3, a claim enforceable under the national law of the State referred to first and the debtor of which was a person who at that time and under the law of that State could not prevent its recovery; or

(b) in the case of an application under paragraph 4, a claim in respect of which, in accordance with the national law of the State referred to first, interim measures may be taken to ensure its recovery.

the competent authorities of the State referred to first shall promptly notify the competent authorities of the other State of that fact and, as decided by that other State, the State referred to first shall suspend or withdraw its request.

8. In no case shall the provisions of this Article be construed 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) Take measures contrary to public order (ordre public);

(c) to provide assistance where the other Contracting State has not applied all the precautionary measures or recovery measures, as the case may be, available to it under its legislation or administrative practice;

(d) provide assistance in cases where the administrative burden on that State is clearly disproportionate to the benefit to be obtained by the other Contracting State.

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

1. This Convention shall be ratified in each Contracting State and the instruments of ratification shall be exchanged as soon as possible.

2. The Convention shall enter into force three months after the date of receipt of the last notification referred to in paragraph 1 and its provisions shall take effect:

(a) In the case of periodic accrual taxes, in respect of income or property taxes for the fiscal year beginning or ending on or after 30 December of the year of entry into force of the Convention.

(b) In other cases, on the date of entry into force of the Convention.

This Convention shall remain in force as long as it is not denounced by one of the Contracting States. Any Contracting State may denounce the Convention by diplomatic means, within five years of its entry into force, by notifying it in writing at least six months before the end of any calendar year. In such a case, the Convention shall cease to have effect:

(a) In the case of periodic accrual tax, in respect of income or property taxes for the fiscal year beginning three months after the date of notification of the denunciation of the Convention.

(b) In other cases, three months after the date of notification of the denunciation of the Convention.

In faith of which, the signatories, duly authorised to do so, have signed this Convention.

Done in double copies in Bogotá on 31 March 2005 in the Spanish language, both texts being equally authentic.

At the time of signing the Convention between the Kingdom of Spain and the Republic of Colombia on the prevention of double taxation and tax evasion in the area of income and property taxes, the signatories have agreed on the following provisions which form an integral part of the Convention:

I. The provisions of this Convention shall be deemed to apply irrespective of what is provided for in the domestic law of the Contracting States.

Il. This Convention shall be deemed to cease to apply to property tax as soon as a tax on assets or net worth ceases to exist in either of the two Contracting States.

III. Ad. Article 3. In the case of Spain in the concept of national, personalist societies (partnerships) are considered included.

IV. Ad. Articles 5 and 7. Remittance tax will not tax the occasional income and earnings of a resident of Spain, who carries out his activity in Colombia through a permanent establishment located in Colombia.

V. Ad. Article 7. In the case of Colombia, the term ‘business profit’ always refers to profits obtained by companies.

VI. Ad. Article 10.

1. In the case of Colombia, the reference to the ‘tax thus required’ in Article 10(2) refers to the special rate for dividends or shares referred to in Article 245(1) of the Tax Statute, or its subsequent amendments, to which Article 10(2)(a) or 2(b) shall apply depending on the percentage of participation.

2. Notwithstanding the provisions of the preceding paragraph, where dividends obtained by a company resident in Spain from Colombia are covered by paragraph 1 of Article 245 of the Tax Statute, or its subsequent amendments, Article 10 shall apply as follows:

(a) the part corresponding to the 35 per cent referred to in that Article shall be reduced in accordance with Article 10(2)(b) where dividends and profits distributed to non-residents in Colombia derive from profits exempt from income tax in the head of the company and provided that that party invests in the same production activity in Colombia for a term not less than three years.

Where the maximum profits liable to be distributed as income not constituting income or occasional gain exceed 65 per cent of the commercial profits before tax, the same rule as provided for in the preceding paragraph of this point (a) on the difference between that amount and profits after tax shall apply.

(b) the special rate provided for dividends or shares referred to in Article 245 (1) of the Tax Statute, or their subsequent amendments, shall be reduced in accordance with Article 10 (2) (a) or (2) (b), depending on the percentage of participation.

3. In the case of Spain, companies of persons are excluded in the application of paragraph 2(b).

VII. Ad. Article 11.

1. In the case of Colombia, the term “the tax thus required” in Article 11(2) refers to the sum of income taxes (35%) and remittances, in cases where Colombian domestic law provides for the application of these two concepts for the interest charged by a non-resident in Colombia.

2. In the event that Colombia, after signing this Convention, agrees with a third State a lower rate of interest tax than that provided for in Article 11 or an exemption other than those provided for in that Article of this Convention, that new rate of tax or exemption shall automatically apply to this Convention as if it were expressly stated therein; it shall take effect from the date on which the provisions of the Convention signed with that third State take effect.

3. Article 11.3(b) shall mean:

(a) Interest arising from short-term claims arising from the importation of goods and from overdrafts or bank overdrafts.

(b) Interest arising from credit for export financing or pre-financing.

(c) Interest on credits for foreign trade operations, made through financial corporations and banks established under Colombian laws.

VIII. Ad. Article 12.

1. In the case of Colombia, in relation to the definition contained in Article 12(3), the concept of technical assistance shall be understood to refer to the advice provided by contract of incorporeal services, for the use of technological knowledge applied through the exercise of an art or technique.

2. In the case of Colombia, the term ‘tax thus required’ in Article 12(2) refers to the sum of income taxes (35%) and remittances, in cases where Colombian domestic law provides for the application of these two concepts for the fees charged by a non-resident in Colombia.

3. In the event that Colombia, after the signing of this Convention, agrees with a third State a rate of tax on royalties or royalties lower than that set out in Article 12 of this Convention, that new rate of taxation shall automatically apply to this Convention as if it were expressly included in it; it shall take effect from the date on which the provisions of the Convention signed with that third State take effect.

IX. Ad. Article 13 In the case of Colombia, the taxation of capital gains mentioned in this article refers to the sum of income taxes (35 per 100) and remittances, in cases where Colombian domestic law provides for the application of these two concepts for this type of income collected by a non-resident in Colombia.

X. Ad. Article 17. The provisions of this Article shall not apply if the recipient of the income, being resident in a Contracting State, is not subject to taxation or is exempt in relation to that income in accordance with the domestic rules of that Contracting State. In this case, this income may be subject to taxation in the other Contracting State.

XI. Ad. Article 22.

1. The expressions "deduction or discount" have the same meaning in Spain and Colombia. The reference to both terms in the article responds to questions of terminology in the domestic law of both States.

2. As long as Colombian legislation does not allow the deduction of the property tax paid in Spain, paragraph (a) (ii) of this article on the elimination of double taxation for property tax in either State shall not apply.

In faith of which, the signatories, duly authorised to do so, have signed this Protocol.

Done in double copies in Bogotá on 31 March 2005 in the Spanish language, both texts being equally authentic.

This Convention enters into force on 23 October 2008, three months after the date of exchange of instruments of ratification, as provided for in Article 28(2) thereof.

What is made public for general knowledge.

Madrid, September 10, 2008. –The Technical Secretary General of the Ministry of Foreign Affairs and Cooperation, Antonio Cosano Pérez.