(1) The Parties shall apply an enhanced administrative cooperation with each other with a view to exchanging information that is foreseeably relevant to the administration, enforcement and collection concerning taxes of all kind and description imposed on behalf of the Parties, their territorial or administrative subdivisions, including local entities.
(2) From the date on which EU law ceases to apply in Gibraltar, the Parties shall apply with regard to each other measures that have equivalent effect to the principles and all of the modalities of Union legislation regarding mutual administrative assistance in force at any given time in the European Union. In particular the information and mechanisms provided by the Council Directive 2011/16 EU of 15 February 2011 on Administrative Cooperation in the field of taxation and repealing Directive 77/799 EC and its subsequent amendments (Directive 2014/107/EU of 9 December 2014, Directive 2015/2376/EU of 8 December 2015, Directive 2016/881/EU of 25 May 2016 and Directive 2018/822/EU of 25 May 2018), Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures. Furthermore, the mechanisms set forth in the broadest terms in the OECD and Council of Europe's Multilateral Convention on Mutual Administrative Assistance in Tax Matters shall be applied, as too shall any OECD and G20 standards introduced in this sphere in the future.
(3) The liaison bodies designated pursuant to Article 4 shall provide mutual administrative assistance to each other in tax matters under this Agreement, whether the person affected is a resident or a non-resident of either Party. The following forms of co-operation shall be available in all cases:
(a) The exchange of information, whether automatic, spontaneous or upon request, including simultaneous tax examinations or joint controls and participation in tax examinations abroad;
(b) Assistance with collection, including measures of conservancy, in accordance with their respective domestic laws; and
(c) The serving or transfer of documents.
(4) The liaison bodies further agree to automatically exchange information on the categories of information specified in paragraphs (5)(a) to (5)(b) and (10)(a) to (10)(b).
(5) The Gibraltarian tax authorities, designated pursuant to Article 4 of this Agreement, shall provide the Spanish tax authorities similarly designated, with the following:
(a) Annual information on workers registered in Gibraltar as residents in Spain, fully identifying every aspect of the underlying employment relationship or any trade, business, profession or vocation carried on or exercised by these workers, including details of duration, economic terms and employer;
(b) Six-monthly information on vessels, aircraft and motor vehicles registered in Gibraltar relating to tax residents in Spain;
(c) The direct and free access to the records of the Registrar of Companies in Gibraltar, provided for in the Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, which amended Directives 2009/138/EC and 2013/36/EU, as well as to the Gibraltar Land Registry;
(d) Direct access to beneficial ownership information as is public or, on request to the Commissioner of Income Tax in Gibraltar on companies, any body corporate, partnerships and foundations;
(e) Direct access to information as is public or otherwise available to the Commissioner of Income Tax in Gibraltar on the settlors, trustees, beneficiaries, assets of all types of trusts, as well as to other legal structures or arrangements established or managed in Gibraltar, or governed by its legislation, when the settlors, trustees, protectors, beneficiaries, are tax resident in Spain or the assets held by all types of trusts are located in Spain.
(6) For the purposes of paragraph (5)(a) above, information is to be exchanged within four months after the end of the calendar year in which the taxable period ends.
(7) The first exchange of information in respect of paragraph (5)(a) above, shall be in respect of taxable periods commencing on or after 1 January 2014 until the date of entry into force of this Agreement and shall be exchanged within four months of the date of entry into force of this Agreement.
(8) For the purposes of paragraph (5)(b) above, information is to be exchanged every six months, on 31 March and 30 September commencing on or after the date of the first exchange under this Agreement. The information exchanged on 31 March shall relate to the period 1 July to 31 December of the previous calendar year, and the information exchanged on 30 September shall relate to the period 1 January to 30 June of that same calendar year. The exchanges made shall ensure continuity of information provided such that no period is omitted between the first exchange of information after the date of entry into force of this Agreement and subsequent ongoing exchanges. These information exchanges shall only include details of new registrations of vessels, aircraft and motor vehicles.
(9) The first exchange of information in respect of paragraph (5)(b) above shall be in respect of taxable periods as they correspond to calendar years commencing on or after 1 January 2014 until the date of entry into force of this Agreement and shall be exchanged within four months of the date of entry into force of this Agreement. This information shall include the ownership, licence plate number, value and acquisition date regarding vessels, aircraft and motor vehicles registered in Gibraltar.
(10) The Spanish tax authorities, designated pursuant to Article 4 of this Agreement, shall provide the Gibraltarian tax authorities, similarly designated, with the following:
(a) Annual information on workers registered in Spain as resident in Gibraltar, fully identifying economic aspect of the underlying employment relationship or any trade, business, profession or vocation carried on or exercised by these workers, including details of duration, economic terms, annual and exempt income and employer;
(b) Six-monthly information on vessels, aircraft and motor vehicles newly registered in Spain relating to tax residents in Gibraltar.
(11) For the purposes of paragraph (10)(a) above, information is to be exchanged within four months after the end of the calendar year to which the information relates.
(12) The first exchange of information in respect of paragraph (10)(a) above, shall be in respect of taxable periods commencing on or after 1 January 2014 until the date of entry into force of this Agreement and shall be exchanged within four months of the date of entry into force of this Agreement.
(13) For the purposes of paragraph (10)(b) above, information is to be exchanged every six months, on 31 March and 30 September. The information exchanged on 31 March shall relate to the period 1 July to 31 December of the previous calendar year, and the information exchanged on 30 September shall relate to the period 1
January to 30 June of the same calendar year. The exchanges made shall ensure continuity of information provided such that no period is omitted between the first exchange of information after the date of entry into force of this Agreement and subsequent ongoing exchanges. These information exchanges shall only include details of new registrations of vessels, aircraft and motor vehicles.
(14) The first exchange of information in respect of paragraph (10)(b) above shall be in respect of taxable periods as they correspond to calendar years commencing on or after 1 January 2014 until the date of entry into force of this Agreement and shall be exchanged within four months of the date of entry into force of this Agreement. This information shall include the ownership, license plate number, value and acquisition date regarding vessels, aircraft and motor vehicles registered in Gibraltar.
(15) For the purposes of Article 3 of this Agreement:
(a) ‘Person’ means:
(i) A natural person; and
(ii) A legal person, entity and other legal structure or arrangement such as a corporation, partnership, trust or foundation;
(b) ‘Workers’ means:
(i) In the case of the information to be exchanged by Gibraltar, natural persons that are employed and/or carry on a trade, business, profession, or vocation in Gibraltar and reside in Spain in municipalities situated within a radius of 80 km from Gibraltar;
(ii) In the case of information to be exchanged by Spain, natural persons resident in Gibraltar that are employed and/or carry on a trade, business, profession, or vocation in Spain in municipalities situated within a radius of 80 km from Gibraltar.
The Parties must apply enhanced administrative cooperation with each other to exchange information that is foreseeably relevant to the administration, enforcement and collection of taxes of every kind and description imposed on behalf of the Parties or their territorial or administrative subdivisions, including local entities. From the date on which EU law ceases to apply in Gibraltar, the Parties must apply towards each other measures that have equivalent effect to the principles and all of the modalities of EU legislation on mutual administrative assistance in force at any given time in the EU, in particular the information and mechanisms provided by an EU directive on administrative cooperation in the field of taxation, with its later amendments, and an EU directive on mutual assistance for the recovery of claims relating to taxes, duties and other measures. In addition, the mechanisms set out in the broadest terms in the multilateral convention of the OECD and the Council of Europe on mutual administrative assistance in tax matters must be applied, as must any OECD and G20 standards introduced in this area in the future. The liaison bodies designated under another article of this agreement must give each other mutual administrative assistance in tax matters under this agreement, whether the person affected is a resident or a non-resident of either Party, and the following forms of cooperation must be available in all cases: the exchange of information, whether automatic, spontaneous or on request, including simultaneous tax examinations or joint controls and taking part in tax examinations abroad; assistance with collection, including measures of conservancy, in accordance with their respective domestic laws; and the serving or transfer of documents. The liaison bodies further agree to exchange automatically the annual information on workers and the six-monthly information on vessels, aircraft and motor vehicles that Gibraltar's and Spain's tax authorities must give each other as set out below. Gibraltar's tax authorities, designated under another article of this agreement, must give Spain's tax authorities, designated in the same way: annual information on workers registered in Gibraltar as residents in Spain, fully identifying every aspect of the underlying employment relationship or of any trade, business, profession or vocation these workers carry on or exercise, including details of duration, economic terms and employer; six-monthly information on vessels, aircraft and motor vehicles registered in Gibraltar relating to tax residents in Spain; direct and free access to the records of the Registrar of Companies in Gibraltar, provided for in an EU directive on preventing the use of the financial system for money laundering or terrorist financing, and to the Gibraltar Land Registry; direct access to beneficial ownership information on companies, any body corporate, partnerships and foundations, as is public or, on request, to the Commissioner of Income Tax in Gibraltar; and direct access to information that is public or otherwise available to the Commissioner of Income Tax in Gibraltar on the settlors, trustees, beneficiaries and assets of all types of trusts, and on other legal structures or arrangements established or managed in Gibraltar or governed by its legislation, when the settlors, trustees, protectors or beneficiaries are tax resident in Spain or the assets held by any type of trust are located in Spain. Gibraltar's worker information is to be exchanged within four months after the end of the calendar year in which the taxable period ends; the first exchange of it covers taxable periods beginning on or after 1 January 2014 up to the date this agreement enters into force and must be made within four months of that date. Gibraltar's vessel, aircraft and motor vehicle information is to be exchanged every six months, on 31 March and 30 September, starting on or after the date of the first exchange under this agreement: the information exchanged on 31 March must relate to 1 July to 31 December of the previous calendar year, and the information exchanged on 30 September must relate to 1 January to 30 June of that same calendar year. These exchanges must ensure continuity, so that no period is left out between the first exchange after this agreement enters into force and the later ongoing exchanges, and they must include only details of new registrations of vessels, aircraft and motor vehicles. The first exchange of that information covers taxable periods as they correspond to calendar years beginning on or after 1 January 2014 up to the date this agreement enters into force, must be made within four months of that date, and must include the ownership, licence plate number, value and acquisition date of vessels, aircraft and motor vehicles registered in Gibraltar. Spain's tax authorities, designated under another article of this agreement, must give Gibraltar's tax authorities, designated in the same way: annual information on workers registered in Spain as resident in Gibraltar, fully identifying the economic aspect of the underlying employment relationship or of any trade, business, profession or vocation these workers carry on or exercise, including details of duration, economic terms, annual and exempt income and employer; and six-monthly information on vessels, aircraft and motor vehicles newly registered in Spain relating to tax residents in Gibraltar. Spain's worker information is to be exchanged within four months after the end of the calendar year to which it relates; the first exchange of it covers taxable periods beginning on or after 1 January 2014 up to the date this agreement enters into force and must be made within four months of that date. Spain's vessel, aircraft and motor vehicle information is to be exchanged every six months, on 31 March and 30 September: the information exchanged on 31 March must relate to 1 July to 31 December of the previous calendar year, and the information exchanged on 30 September must relate to 1 January to 30 June of the same calendar year. These exchanges must also ensure continuity, so that no period is left out between the first exchange after this agreement enters into force and the later ongoing exchanges, and they must include only details of new registrations of vessels, aircraft and motor vehicles. The first exchange of that information covers taxable periods as they correspond to calendar years beginning on or after 1 January 2014 up to the date this agreement enters into force, must be made within four months of that date, and must include the ownership, licence plate number, value and acquisition date of vessels, aircraft and motor vehicles registered in Gibraltar. For this article, a 'person' means a natural person, or a legal person, entity or other legal structure or arrangement such as a corporation, partnership, trust or foundation. 'Workers' means: for the information to be exchanged by Gibraltar, natural persons who are employed or carry on a trade, business, profession or vocation (or both) in Gibraltar and who reside in Spain in municipalities within a radius of 80 km from Gibraltar; and for the information to be exchanged by Spain, natural persons resident in Gibraltar who are employed or carry on a trade, business, profession or vocation (or both) in Spain in municipalities within a radius of 80 km from Gibraltar.