House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. John Dawkins, M.P.)

Protocol to Agreement With Spain

The protocol deals with any non-discrimination articles which Australia may subsequently enter into with other countries.

Broadly, a non-discrimination article provides that, for the purposes of taxation, a Contracting State may not treat the nationals of the other Contracting State less favourably than the State would treat its own nationals under the same circumstances.

The Protocol, which forms part of the agreement, provides that if Australia enters into a non-discrimination article with another country, it will also enter into negotiations with Spain for the purpose of extending similar treatment to that provided in respect of the nationals of that other country to the nationals of Spain.