As anticipated in our Tax Flash dated July 2, 2019 the new protocol amending the Tax Treaty between the United States of America and the Kingdom of Spain for the avoidance of double taxation and the prevention of fiscal evasion was approved by the US Senate Committee of International Affairs.
Finally, on July 16, 2019 the US Senate has approved the new protocol. Consequently, the definitive approval enters in its final procedure. It is only pending the exchange of notes and ratification of the protocol which it is expect to happens soon.
When this happens the new Tax Treaty will enter into force once three months have elapsed.
As previously informed, the new protocol establishes significative tax reductions in the taxation of dividends, interests, royalties and capital gains.
We will keep you updated when the final ratification takes place.