From: puerta@mcs-next-10.stanford.edu (Angel Puerta)
Subject: New Tax  Treaty Spain-USA
Reply-To: puerta@camis.stanford.edu
Organization: Stanford University, California, USA
Date: Wed, 8 Apr 1992 22:25:42 GMT


I have unconfirmed information that Spain and USA entered into a Tax Treaty in  
November of 1991.

For everybody who has to pay taxes in the US, it is important that you check  
with the appropriate office in your University/Company to get details about the  
treaty (Most university payroll offices's have a knowledgeable person on  
treaties). In some cases, you could save a good deal of money.

I am not aware if the treaty affects 1991 income during since the treaty was  
signed so late in the year. If it does and you have already filed your 1991  
return, you can ammend your return and get any money due to you back from the  
IRS for a period of 3 years starting April 15, 1992.

Here is the message from which I have derived the information above:

==============================================================================


 ** Begin Forwarded Message **

Date: Wed, 08 Apr 92 16:03:59 EDT
From: burgos@Athena.MIT.EDU
Subject: Re: impuestos
To: Angel Puerta <puerta@camis.stanford.edu>


Hy guys,

there's a tax treaty between spain and the US that started in Nov 1991.
R.A's strudents are exempt to pay the first $ 5,000 from their taxes.
This makes a difference !!

Where to withdraw it ?

If you have not signed the form  [Angel's note: I think this is the 1040NR]  
with your contractor (university in this 
case) deduct the $ 5,000 from the amount written in your W-4 [Angel's note: I  
think Joaquin means W-2, not W-4] and 
make a note at the bottom of the first page explaining that you claim
your right from article 22 of the US-Spain tax treaty. 
Note that you have to do it in both, state and fed forms


			Joaquin R. Lacalle

----------------------------------------------------------------------

Article 22 - students and trainees

1- (a) An individual who is a resident of a contracting state at the beginning
of his visit to the other Contracting state and who is temporarily present
in that other contracting state for the primary purpose of :

	i) Studying at a University or other accredited educational
institution in that other contracting state, or

	ii)Securing training required to qualify him to practice a profession 
or professional specialty, or

	iii) studying or doing research as a recipiennt of a grant, allowance
or award from a governmental, religious, charitable, scientific, literary, or
educational organization,

shall be exempt from tax by that other Contracting state with respect to 
the amounts described in subparagraph (b) of this paragraph for a perod 
not exceeding 5 years from the date of his arrival in that contracting state

    (B) The amounts referred to in subparagraph (a) of this paragraph are:

	i) Payments from abroad, other than compensation for personal services
for the purpose of his maintenance, education, study, research or training.

	ii) The grant, allowance or award

&*******iii) Income from personal services performed in that other contracting
state in an aggregate amount not in excess of $ 5,000 US or its equivalent
in Spanish pesetas for any taxable year.

    ..................................................

Y el articulo sigue....


			Joaquin R. Lacalle




--
Angel Puerta
puerta@camis.stanford.edu
Newsgroups: soc.culture.spain