Based on the overview of Agremeents of Information on Tax Matters (TIEAs) as available on the website of the States of Guernsey, On November 10, 2015 the States of Guernsey and the Kingdom of Spain signed an TIEA. The TIEA arranges for the exchange of information upon request.
Although signed, the TIEA has not yet entered into force. For the TIEA to enter into force, the respective ratification procedures have to have been finalized by both countries.
Below we will discuss a selection of provisions included in the TIEA of which we feel our readers might be interested in.
According to Article 3, Paragraph 1 of the TIEA (“Taxes Covered”), the TIEA shall apply to the following taxes imposed by the Parties:
a) in the case of Spain:
(i) taxes of every kind and description, imposed by the national authorities, including among others:
- the income tax on individuals (Impuesto sobre la Renta de las Personas Fisicas);
- the corporation tax (Impuesto sobre Sociedades);
- the income tax on non-residents (Impuesto sobre la Renta de No Residentes);
- the capital tax (Impuesto sobre el Patrimonio);
- the inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones);
- the transfer tax (Impuesto sobre Transmisiones Patrimoniales y Actos Juridicos Documentados);
- the value added tax (Impuesto sobre el Valor Añadido); and
- the excise tax (Impuestos Especiales);
(ii) local taxes on income and on capital (impuestos locales sobre la renta y el patrimonio);
b) in the case of Guernsey:
(i) income tax;
(ii) dwellings profits tax.
Article 3, Paragraph 2 of the TIEA subsequently arranges that the TIEA shall apply also to any identical taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes, or any substantially similar taxes if the Parties so agree.
Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request.
Article 6 of the TIEA contains regulations regarding Tax Examinations Abroad.
Article 7 of the TIEA contains regulations regarding the Possibility of Declining a Request. Based on Paragraph 1 of Article 7 the competent authority of the requested Party may decline to assist:
a) where the request is not made in conformity with this Agreement;
b) where the requesting Party has not pursued all means available in its own territory to obtain the information, except where recourse to such means would give rise to disproportionate difficulty; or
c) where the disclosure of the information requested would be contrary to public policy.
Article 12 of the TIEA contains regulations regarding a Mutual Agreement Procedure.
Click here to be forwarded to the text of the TIEA as available on the website of the Government of the States of Guernsey, which will open in a new window.
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