Press Information Bureau

Government of India

Ministry of Finance

26-October-2012 18:17 IST

The Government of the Republic of India and the Government of the Kingdom of Spain signed here today the Protocol for amending the Convention and Protocol between the Government of the Republic of India and the Government of the Kingdom of Spain for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital. The Protocol has been signed by the Union Finance Minister of India, Shri P. Chidambaram on behalf of India, while Minister for Foreign Affairs and Cooperation of Spain, Jose Manuel Garcia-Margallo y Marfil signed it on behalf of Spain.

It is expected to stimulate the effective exchange of information and enable Assistance in Collection of taxes between India and Spain. It will reduce obstacles in mutual cooperation between the two countries and also prevent the abuse of the benefits of the Convention.

The Protocol will enter into force on completion of internal procedures in both the countries.

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DSM/SS/ka

Double taxation treaty amendment strengthens information exchange and tax collection assistance between the contracting states. The Protocol amends the bilateral framework to reinforce avoidance of double taxation and prevention of fiscal evasion by enhancing exchange of information and providing for assistance in the collection of taxes, reducing obstacles to mutual cooperation and preventing abuse of Convention benefits; it enters into force after completion of each Party's internal procedures.