Both the Spanish Ministry of Finance and the Government of the Isle of Man have issued a press release announcing that on December 3, 2015 Spain and theIsle of Man signed a Tax Information Exchange Agreement (TIEA). 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 in both countries.

The TIEA arranges for the Exchange Of Information Upon Request.

Below we will discuss a selection of regulations included in the TIEA of which we think they might interest our readers.

According to Article 3, Paragraph 1 of the TIEA (“Taxes Covered”), the taxes which are the subject of this TIEA are: 

(a)   in the Isle of Man:

(i)         taxes on income or profit; and

(ii)        the value added tax;

(b)   in Spain:

(i)         the income tax on individuals (Impuesto sobre la Renta de las Personas Fisicas);

(ii)       the corporation tax (Impuesto sobre Sociedades); 

(iii)      the income tax on non-residents (Impuesto sobre la Renta de No Residentes

(iv)      the capital tax (Impuesto sobre el Patrimonio);

(v)       the inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones);

(vi)      the transfer tax (Impuesto sobre Transmisiones Patrimoniales y Actos Juridicos Documentados);

(vii)     the value added tax (Impuesto sobre el Valor Añadido);

(viii)    the excise tax (Impuestos Especiales); and (ix) the local taxes on income and on capital (impuestos locales sobre la renta y el patrimonio).

Article 3, Paragraph 2 of the TIEA subsequently arranges that the TIEA also apply to any identical or substantially similar taxes imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. Furthermore, the taxes covered may be expanded or modified by mutual agreement of the Parties in the form of an exchange of letters.

Article 5 of the TIEA contains regulations regarding the Exchange of Information upon Request.

Article 6 of the TIEA contains regulations regarding the possibilities for conducting tax examinations abroad.

Article 13 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 Isle of Man, which will open in a new window.

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