And the government of the russian federation for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital

 

EXCHANGE OF INFORMATION 

 

 

 

1. The competent authorities of the Contracting States shall exchange 

such information as is necessary for carrying out the provisions of this Convention or 

of the domestic laws of the Contracting States concerning taxes covered by the 

Convention insofar as the taxation thereunder is not contrary to the Convention. The 

exchange of information is not restricted by Article 1. Any information received by a 

Contracting State shall be treated as confidential in the same manner as information 

obtained under the domestic laws of that State and shall be disclosed only to persons 

or authorities (including courts and administrative bodies) involved in the assessment 

or collection of, the enforcement or prosecution in respect of, or the determination of 

appeals in relation to, the taxes covered by the Convention. Such persons or 

authorities shall use the information only for such purposes. They may disclose the 

information in public court proceedings or in judicial decisions. 

 

 

2. In no case shall the provisions of paragraph 1 be construed so as to 

impose on a Contracting State the obligation: 

 

 

a) 

to carry out administrative measures at variance with the laws or 

the administrative practice of that or of the other Contracting State; 

 

 

b) 

to supply information which is not obtainable under the laws or in 

the normal course of the administration of that or of the other 

Contracting State; 

 

 

c) 

to supply information which would disclose any trade, business, 

industrial, commercial or professional secret or trade process, or 

 

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information, the disclosure of which would be contrary to the vital 

interests of that State.  

 

 

 Article 

27 

 

 

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR OFFICES 

 

 

 

Nothing in this Convention shall affect the fiscal privileges of members of 

diplomatic missions or consular offices under the general rules of international law or 

under the provisions of special agreements. 

 

 

Article 28 

 

 ENTRY 

INTO 

FORCE 

 

 

1. The Governments of the Contracting States shall notify to each other 

that the internal procedures required by the law of each Contracting State for the entry 

into force of this Convention have been complied with. 

 

 

2. The Convention shall enter into force on the date of the later of the 

notifications referred to in paragraph 1 and its provisions shall have effect in respect of 

taxes on income or on capital relating to any tax year beginning on or after the first day 

of January in the calendar year next following that in which the Convention enters into 

force. 

 

 

3. From the date on which this Convention enters into force in accordance 

with paragraph 2 of this Article, the Convention between the Government of Spain and 

the Government of the Union of Soviet Socialist Republics for the avoidance of double 

taxation on income and on capital, signed at Madrid on 1st March 1985, shall cease to 

have effect in relations between Spain and Russia. 

 

 

Article 29 

 

 TERMINATION 

 

 

 

This Convention shall remain in force until denounced by one of the 

Contracting States. Either Contracting State may terminate the Convention by giving,  

through diplomatic channels, notice of termination at least six months before the end 

of any calendar year following after the period of five years from the date on which the 

Convention enters into force. In such event, the Convention shall cease to have effect 

in respect of taxes on income or on capital relating to any tax year beginning on or 

after the first day of January in the calendar year next following that in which the notice 

of termination is given. 

 

 

In witness whereof the undersigned, duly authorised thereto, have signed 

this Convention. 

 

 

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Done in duplicate at  ... this ... day of ...in the Spanish, Russian and 

English languages, each text being equally authentic. In case of any divergence of 

interpretation, it shall be resolved in accordance with the English text. 

 

 

 

 

For the Government of  

 

 

For the Government of the 

the 

Kingdom 

of 

Spain 

    

Russian 

Federation 

 

 

 

 

20

 

 PROTOCOL 

 

 

 

At the moment of signing the Convention between the Government of the 

Kingdom of Spain and the Government of the Russian Federation for the Avoidance of 

Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on 

Income and on Capital, the undersigned have agreed upon the following provisions 

which shall be an integral part of the Convention: 

 

 

 

 

I. 

a) 

In Spain, it is understood that the reference to political 

subdivisions is made to "Comunidades Autónomas"; the reference 

to local authorities corresponds to "Entidades Locales"; as defined 

under the Spanish Constitution of 27th December 1978 and 

relevant laws. 

 

 

b) 

In Russia, it is understood that political subdivisions means 

Subjects of Federation as defined under the Constitution of the 

Russian Federation of 12th December 1993. 

 

II. 

Payments received in consideration for the use of, or the right to use, 

ships or aircraft on a bare boat basis or containers, in international traffic, shall be 

taxable only in the Contracting State of which the recipient is a resident. 

 

 

III. 

Ad Article 10, paragraph 2, a) (ii) 

 

 

In the case of Spain, it is understood that dividends are exempted from 

tax when a deduction of the total amount of the Spanish tax corresponding to such 

dividends is provided by the Spanish law now in force or by any other provision which 

could be adopted in the future establishing a substantially similar regime. 

 

IV. 

Ad Article 10, paragraph 3  

 

 

It is understood that the term "dividends" includes revenue on the 

liquidation of a company. 

 

V. 

Ad Articles 10, 11, 12 and 13 

 

 

a) 

Notwithstanding the provisions of this Convention, a company 

resident in a Contracting State in which persons who are not 

residents of that State hold, directly or indirectly, a participation of 

more than 50 per cent of the share capital, shall not be entitled to 

the reliefs provided for by the Convention in respect of dividends, 

interests, royalties and capital gains arising in the other 

Contracting State. This provision shall not apply where the said 

company is engaged in substantive business operations, other 

than the mere holding of shares or property, in the Contracting 

State of which it is a resident. 

 

 

b) 

A company which under the preceding subparagraph would not be 

entitled to the benefits of the Convention in respect of the 

 

21

aforementioned items of income, could still be granted such 

benefits if the competent authorities of the Contracting States 

agree under article 25 of this Convention that the establishment of 

the company and the conduct of its operations are founded on 

sound business reasons and thus do not have as its primary 

purpose the obtaining of such benefits. 

 

VI. 

Ad Article 17, paragraph 3 

 

 

It is understood that the visit of artistes and sportsmen is "substantially" 

supported by public funds when 75% or more of the total expenses on transport, 

accommodation and daily allowance are financed by funds of such nature. 

 

 

VII. 

Ad Article 24, paragraph 5  

 

 

It is understood that the provisions of Article 24 shall not prevent the 

application by a Contracting State of its domestic law concerning thin capitalization. 

 

VIII. 

Ad Article 24, paragraph 6 

 

 

In the case of Russia, it is understood that the expression "taxes of every 

kind and description" does not include customs duties. 

 

 

 

In witness whereof the undersigned, duly authorised thereto, have signed 

this Protocol. 

 

 

Done in duplicate at ... this ... day of ... in the Spanish, Russian and 

English languages, each text being equally authentic. In case of any divergence of 

interpretation, it shall be resolved in accordance with the English text. 

 

 

 

For the Government of  

 

 

For the Government 

the Kingdom of Spain 

 

 

 

of the Russian Federation