DOCUMENT
Exchange of letters of 1 March and 22 April 2005 on the application of the Convention to Prevent Double Taxation between Spain and France, done at Madrid on 10 October 1995.
22.04.2005 · BOE-A-2009-13036
EXCHANGE OF LETTERS
Dear sir. Saint - Amans:
By letter of 1 March 2005, he transmitted the following to me, according to our French translation:
French institutions for collective investment in transferable securities (OPCVM) not subject to tax do not fall within the scope of the Spanish-French Tax Convention of 10 October 1995, Article 1 of which provides that ‘only persons resident in a Contracting State or in the two Contracting States’ may benefit from the advantages of the Convention.
According to article 4 of this treaty, the term “resident of a Contracting State” refers to any person who, under the law of that State, is subject to taxation on account of his domicile, residence, place of address or any other criterion of a similar nature. However, most investment funds or collective investment institutions in transferable securities are either not persons or are not subject to tax within the meaning of the agreement.
Point 9(a) of the Protocol provides that a UCITS incorporated in a Contracting State where it is not subject to tax and which receives dividends or interest from the other Contracting State may enjoy the benefits of the Convention provided that there is an agreement between the competent authorities to define the modalities of application.
Therefore, I propose that you adopt the following procedure, in order to make this clause operational for French UCITS (the Spanish collective investment institutions are subject to the 'Cash Tax', then for them the procedure is not necessary).
Any UCITS incorporated in France which receives dividends or interest from Spanish sources may apply for reductions, tax exemptions or other benefits provided for in the Convention of 10 October 1995 for the share of such revenue corresponding to the rights held by shareholders or shareholders who are French residents.
To this end, every time the UCITS submits an application it must accompany the commonly used forms of the Convention and certificate attached to this letter.
This certificate, like the Convention forms, must be validated by the French authority before being sent to the income-paying institution.
It shall indicate the percentage of shareholders or shareholders of the institution who are resident in France on the date of closure of the UCITS prior to the date in which the dividends or interest for which the benefits of the Convention are applied are received.
Reductions, exemptions from tax or other benefits provided for in the Convention shall be granted at that rate for the UCITS and until the end of the following financial year (or until 31 December of the year during which the dividends have been received if no financial year is closed during that year).
I should be grateful if you would inform me if you would agree to this procedure, in which case it could be applied for the first time to dividends and satisfied interest as from 1 January 2004.
In response to your letter, I am pleased to convey my agreement on this procedure, taking into account the model certificate annexed to this letter. With regard to its proposal to enter into force for dividends and satisfied interest from 1 January 2004, we consider that the date to be taken into account should be 1 January 2005.
Sincerely,
English rendering of a scanned annex (unverified OCR). The original facsimile is retained below for comparison.
Automatic English OCR transcription (unreviewed)
FRANCO ESPAGNOLE CONVENTION ON TURNING D'EVITER LES DOUBLES IMPOSITIONS ET DE PREVENIR L'EVASION ET LA FRAUDE FISCALES EN MATIERE D'IMPOTS SUR LE REVENU ET SUR LA FORTUNE DU 10 OCTOBER 1995
PROVISIONS RELATIVES AUX ORGANISMS OF COLLECTIF PLACEMENT IN VALEURS MOBILIERS (OPCVM) CONTAINES AU POINT 9 DU
PROTOCOLE
_. FRENCH SPANISH CONVENTION TO Avoid DOUBLE IMPOSITION AND TO PREVENT EVASION AND TAX FRAUD IN THE FIELD OF TAX ON RENT AND EL. PATRIMONIUM, SIRMED ON 10
OCTOBER 1995
PROVISIONS RELATING TO THE INSTITUTIONS DF COLLECTIVE INVESTMENT IN MOBILIARY VALUES (OPCVYM) REFERRED TO IN THE POINT 9
PROTOCOL
FEUILLE COMPLEMENTARY TO JOINDRE A L'IMPRIME NC.......... COMPLEMENTARY IMPRESEMENT TO ACCOMPANY FORM N .....
This supplementary sheet must accompany each application submitted by the [source fragment continues].
The legal representative or management company of a collective investment undertaking, on form No. [blank]. This supplementary form must accompany each application submitted by the [source fragment continues].
legal representative or managing company of a UCITS on Form N* ...
This supplementary sheet is used to determine the tax reductions, exemptions or other treaty benefits to which these bodies are entitled on behalf of [source fragment continues].
Unit holders or shareholders who are residents of France.
This supplementary form is used to derail reductions and exemptions from taxes or other benefits provided for by the agreement to which these institutions are entitled on behalf of the shareholders or shareholders resident in France
ETABLISSEMENT PAYEUR DE INTERETS ET DIVIDENDES ESTABLISHMENT OF INTERESTS AND DIVIDENDES
I booked the administration space reserved for the administration.
Denomination
Adresse complete du lieu de paieement Full address of the place of payment
Stamp of the establishment.
Original source facsimile
English rendering of a scanned annex (unverified OCR). The original facsimile is retained below for comparison.
Automatic English OCR transcription (unreviewed)
I booked the administration space reserved for the administration.
OPCVM CREANCIER OPCYM ACCREEDORA Denomination Qu Designation As a
Direction ou Etablissement management Address or managing institution
Adresse fill out Full address
AAA AAA AAA AA
RENSEIGNIGNMENTS CONCERNANT LE PORTEFEUILLE DATA RELATING TO THE CARTER
I booked an administration space reserved for the administration.
Exercise QU......o.ormooccorncncnononos Mococororcccnnnnnnnonnons Exercise of .....ooococoncononnnrnns Aloiciccacicanononos
Valeur du portefeuille a la clóture de 'exercice précédent Portfolio value at the end of the preceding financial year
Number of units or shares in circulation at the end of the previous financial year.
Number of shares or shares in circulation at the end of the preceding financial year
Percentage of units or shares held by residents of France on that same date.
Percentage of shares or shares held by residents of France on the same date.
Original source facsimile
English rendering of a scanned annex (unverified OCR). The original facsimile is retained below for comparison.
Automatic English OCR transcription (unreviewed)
DECLARATION OF THE ACCREEDING INSTITUTION
Réservé A Padministration Space reserved for the Administration.
The undersigned declares that the information provided on this supplementary sheet is correct and requests the treaty benefits for the securities covered by application No. [blank], in the proportion indicated above.
The undersigned states that the information presented in this supplementary sheet is true: he requests to enjoy the benefits provided by the Convention for the titles covered by application N”. ....... In the proportion indicated above.
Place and date: [blank]. Signature: [blank].
VISA DE L'INSPECTEUR DE IMPOTS DONT RELEVE I RESERVED L'OPCVM Padministration CERTIFICATE OF THE HAIR INSPECTOR COMPETENT reserved space for the Administration.
L'administration fiscale frangaise atteste :
The French Administration certifies:
0 that POPCVM indicated that they are ressort, € that the above VM OPC is of their co-independence.
8 that the suggestions portées to him give south the president demand sont, to
sa conriaissance, exactes, 6 that the information provided by the declarant in this request is,
as far as you're concerned, right.
Faitá le Made in (cachet et signature) (seal and signature)
Original source facsimile
This exchange of letters has been in effect since 1 January 2005.
What is made public for general knowledge.
Madrid, July 23, 2009. –The Technical Secretary General of the Ministry of Foreign Affairs and Cooperation, Antonio Cosano Pérez.