The U.S. Senate this evening, July 16, 2019, approved a Protocol to amend the income tax treaty with Spain.
The Protocol to amend the income tax treaty with Spain was signed in January 2013, and provides for:
Senate Majority Leader Mitch McConnell (R-KY) has announced his intention to hold votes tomorrow, July 17, 2019, on the remaining three Protocols with Switzerland, Luxembourg, and Japan.
Once the Protocols are approved by the Senate, there are certain ministerial actions required (such as preparation and exchange of articles of ratification) before ratification is completed in the United States and before the Protocols can enter into force.
These Protocols were all negotiated and signed long before the December 2017 enactment of the U.S. tax law (Pub. L. No. 115-97) that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).
The Protocols do not appear to modify the provisions of the respective treaties arguably relevant to the TCJA. The treaties, on the other hand, might arguably do so and, in the case of any conflict, would supersede the TCJA because the treaties would be later in time.
Still pending ratification are the income tax treaties with Hungary, Poland, and Chile. There is no Senate action scheduled on these treaties at this time.
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