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The Department of State refers the Embassy of the Kingdom of Spain to the

Protocol Amending the Convention Between the United States of America and the

Kingdom of Spain for the Avoidance of Double Taxation and the Prevention of

Fiscal Evasion with Respect to Taxes on Income, and its Protocol signed at

Madrid, on February 22, 1990 ("the Convention"), done at Madrid on January 14,

2013 ("the 2013 Protocol"), and a related Memorandum of Understanding between

the United States of America and the Kingdom of Spain signed the same day.

Some errors were discovered in the English and Spanish language texts of the 2013

Protocol and the Memorandum of Understanding, which the Government of the

United States of America proposes to rectify as follows:

English language texts of the Memorandum of Understanding

Subparagraph (a) of Paragraph 3 of the texts of the Memorandum of

Understanding, which currently read:

) In the case of the United States, the term "pension fund" includes the

following: a trust providing pension or retirement benefits under an Internal

DIPLOMATIC NOTE
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Revenue Code section 401(a) qualified pension plan (which includes a Code

section 401(k) plan), a profit sharing or stock bonus plan, a Code section 403(a)

qualified annuity plan, a Code section 403(b) plan, a trust that is an individual

retirement account under Code section 408, a Roth individual retirement account

under Code section 408A, or a simple retirement account under Code section

408(p), a trust providing pension or retirement benefits under a simplified

employee pension plan under Code section 408(k), a trust described in section

457(g) providing pension or retirement benefits under a Code section 457(b) plan,

and the Thrift Savings Fund (section 7701(j)). A group trust described in Revenue

Ruling 81-100, as amended by Revenue Ruling 2004-67 and Revenue Ruling

2011-1, qualifies as a pension fund only if each participant is a pension fund that is

itself entitled to benefits under the Convention as a resident of the United States.

shall now read as follows:

"(a) In the case of the United States, the term "pension fund" includes the

following: a trust providing pension or retirement benefits under an Internal

Revenue Code section 401(a) qualified pension plan (which includes a Code

section 401(k) plan), a profit sharing or stock bonus plan, a Code section 403(a)

qualified annuity plan, a Code section 403(6) plan, a trust that is an individual
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retirement account under Code section 408, a Roth individual retirement account

under Code section 408A, or a simple retirement account under Code section

408(p), a trust providing pension or retirement benefits under a simplified

employee pension plan under Code section 408(k), a trust described in section

457(g) providing pension or retirement benefits under a Code section 457(b) plan,

and the Thrift Savings Fund (section 7701(j)). A group trust described in Revenue

Ruling 81-100, as amended by Revenue Ruling 2004-67 and Revenue Ruling

2011-1, shall qualify as a pension fund only if it earns income principally for the

benefit of one or more pension funds entitled to benefits under the Convention as

residents of the United States."

The United States' Spanish language text of the 2013 Protocol.

New clause (ii) of subparagraph (a) of paragraph 5 to Article 1 (General Scope) of

the Convention, as amended by Article I of the 2013 Protocol, which currently

reads:

"(ii) las disposiciones del articulo XVII del Acuerdo General sobre

el Comercio de Servicios no se aplicard a una medida fiscal a
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menos que las autoridades competentes esten de acuerdo en que

esa medida no recae en el ambito del articulo 25 (No

discriminaciOn) de este Convenio."

shall now read as follows:

"(ii) las disposiciones del articulo XVII del Acuerdo General sobre

el Comercio de Servicios no se aplicaran a una medida fiscal a

menos que las autoridades competentes esten de acuerdo en que

esa medida no recae en el ambito del articulo 25 (No

discriminaciOn) de este Convenio."

Spanish language texts of the Memorandum of Understanding

Subparagraph (a) of Paragraph 3 of the texts of the Memorandum of

Understanding, which currently read:

"(a) En el caso de los Estados Unidos, la expresiOn "fondo de pensiones"

comprende los siguientes: los fideicomisos que proporcionen

pensiones o prestaciones por jubilaciOn a traves de un plan de
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pensiones calificado conforme al articulo 401(a) del Internal Revenue

Code - IRC (que incluye los planes comprendidos en el articulo

401(k) del IRC), los planes para el reparto de beneficios o planes de

compensaciones con acciones a empleados (stock bonus plan), los

planes de anualidades calificados conforme al articulo 403(a) del IRC,

los planes comprendidos en el articulo 403(b) del IRC, los

fideicomisos que constituyan una cuenta individual de jubilaciOn

conforme al articulo 408 del IRC, los planes de jubilaciOn individual

tipo "Roth" conforme al articulo 408A del IRC, o una simple cuenta

de jubilaciOn conforme al articulo 408(p) del IRC, los fideicomisos

que proporcionen pensiones o prestaciones por jubilaciOn mediante un

plan de pensiones para trabajadores simplificado conforme al articulo

408(k) del IRC, los fideicomisos descritos en el articulo 457(g) que

proporcionen pensiones o prestaciones por jubilaciOn a traves de un

plan previsto en el articulo 457(b) del IRC y el fondo de ahorro para

empleados federales ("Thrift Savings Fund" (articulo 7701(j)). El

grupo de fideicomisos al que se refiere la resoluciOn del Organ° de

administraciOn tributaria estadounidense ("Internal Revenue Service')

81-100, modificada por las consultas 2004-67 y 2011-1, puede
calificarse como fondo de pensiones Unicamente si todos sus

participes son fondos de pensiones con derecho propio a acogerse a

los beneficios del Convenio como residentes de los Estados Unidos."

shall now read as follows:

(a) En el caso de los Estados Unidos, la expresiOn "fondo de pensiones"

comprende los siguientes: los fideicomisos que proporcionen

pensiones o prestaciones por jubilaciOn a traves de un plan de

pensiones calificado conforme al articulo 401(a) del Internal Revenue

Code - IRC (que incluye los planes comprendidos en el articulo

401(k) del IRC), los planes para el reparto de beneficios o planes de

compensaciones con acciones a empleados (stock bonus plan), los

planes de anualidades calificados conforme al articulo 403(a) del IRC,

los planes comprendidos en el articulo 403(b) del IRC, los

fideicomisos que constituyan una cuenta individual de jubilaciOn

conforme al articulo 408 del IRC, los planes de jubilaciOn individual

tipo "Roth" conforme al articulo 408A del IRC, o una simple cuenta

de jubilaciOn conforme al articulo 408(p) del IRC, los fideicomisos
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que proporcionen pensiones o prestaciones por jubilaciOn mediante un

plan de pensiones para trabajadores simplificado conforme al articulo

408(k) del IRC, los fideicomisos descritos en el articulo 457(g) que

proporcionen pensiones o prestaciones por jubilaciOn a traves de un

plan previsto en el articulo 457(b) del IRC y el fondo de ahorro para

empleados federates ("Thrift Savings Fund" (articulo 7701(j)). El

fideicomiso colectivo al que se refiere la resoluciOn del Organo de

administraciOn tributaria estadounidense ("Internal Revenue Service')

81-100, modificada por las resoluciones 2004-67 y 2011-1, se

calificara como fondo de pensiones Unicamente si genera rentas

principalmente en beneficio de uno o mas fondos de pensiones con

derecho a acogerse a los beneficios del Convenio como residentes de

los Estados Unidos.

The Department of State proposes, on behalf of the Government of the

United States of America, that:

I. The United States' Spanish language text of the 2013 Protocol be

corrected as set out above;
II. The English and Spanish language texts of the Memorandum of

Understanding be corrected as set out above; and

III. The corrected texts of the 2013 Protocol and Memorandum of

Understanding replace the defective texts as from the date on which

the 2013 Protocol and Memorandum of Understanding were signed;

If the Government of the Kingdom of Spain concurs with the proposals

contained in paragraphs I., II., and III. above, the Department of State proposes

that this note and the affirmative note in reply thereto of the Embassy of the

Kingdom of Spain expressing the concurrence of the Government of the Kindgom

of Spain shall constitute a correction of the United States' Spanish language text of

the 2013 Protocol and the English and Spanish language texts of the Memorandum

of Understanding and shall become part of the original versions thereof.

Department of State,

JUL 2 3 2013

Washington,