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Argentina Signs New Convention With Spain

Argentina Signs New Convention With Spain
26 Mar 2013
On 11 March 2013, Spain and Argentina entered into a new Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and wealth. Its corresponding Protocol replaces the one terminated by Argentina on 29 June 2012.

Taxand Argentina and Taxand Spain dicuss the updates introduced by the new Convention.

The most relevant changes of the new Convention are the following:

  • Stocks or interests in the equity or assets of a company may be taxed by both parties, therefore, Spanish residents are no longer excluded from the Personal Assets Tax over their interests in Argentine companies
  • The most-favoured nation clause was removed from the Protocol and will no longer apply
  • The terms for the tax information exchange between the parties have been widened
  • The Convention includes a Memorandum of Understanding by which the parties state certain anti-abuse rules

According to the Convention, once it is in force its rulings will apply as of 1 January 2013, irrespective of the case. It should be noted that the new Convention is not currently in force because it has not been internally ratified by the parties yet.


Your Taxand contacts for further queries are:
ARGENTINA
Ezequiel Lipovetzky
T. +5411 5288 2300
E. ezequiel.lipovetzky@bfmyl.com

Juan Pablo Baumann Aubone
T. +5411 5288 2300
E. juan.baumann.aubone@bfmyl.com

SPAIN
Vicente Bootello
T. +34 91 514 5200
E. vicente.bootello@garrigues.com

Alvaro de la Cueva
T. +34 91 514 5200
E. alvaro.de.la.cueva@garrigues.com

Taxand's Take


This is a positive step for both Spain and Argentina and will be welcomed by multinationals operating within these jurisdictions. The previous Treaty, which was signed in 1992, was terminated by Argentina on the reccommendation by an adhoc commission after a review on Argentina's double tax treaties for potential abuse. The termination of this treaty had meant that cross-border transactions were subject to higher tax rates.

Taxand's Take Author

Ezequiel Lipovetzky