Agreement in principle on New Tax Convention between Japan and Spain
1. The representatives of the Government of Japan and the Government of the Kingdom of Spain have agreed in principle on a new Convention that replaces the Convention between Japan and the Spanish State for the Avoidance of Double Taxation with respect to Taxes on Income which entered into force in 1974.
2. The new Convention will reinforce or introduce provisions for the purposes of clarifying the scope of taxation in the two countries, eliminating international double taxation and preventing tax evasion and avoidance, and is expected to promote further mutual investments and economic exchanges between the two countries.
3. The new Convention will be signed after the final text has been fixed and the necessary internal procedures have been completed by each of the two Governments. Thereafter, the Convention will enter into force after the completion of the approval process in the both countries (in case of Japan, approval by the Diet).