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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 3

General Definitions

(1) For the purposes of this Convention, unless the context otherwise requires:

  • (a) the term "Spain" means the Kingdom of Spain and when used in its geographical sense, means the territory of the Kingdom of Spain, including therein its aerial space, its inland waterways, its territorial sea and those areas outside the territorial sea, whereby pursuant to international law and by reason of its domestic law, the Kingdom of Spain exercises or may exercise in the future, jurisdiction or sovereignty rights as regards to the seabed, its subsoil and overlying waters, as well as its natural resources;
  • (b) the term "El Salvador" means the Republic of El Salvador, including therein its aerial space, its inland waterways, its territorial sea and those areas outside the territorial sea, whereby pursuant to international law and by reason of its domestic law, the Republic of El Salvador exercises or may exercise in the future jurisdiction or sovereignty rights regarding the seabed, its subsoil and overlying waters, as well as its natural resources;
  • (c) the terms "a Contracting State" and "the other Contracting State" mean, depending on the context, Spain or El Salvador;
  • (d) the term "person" means an individual, a company or any other body of persons;
  • (e) the term "company" means any corporate body or any entity that is treated as a body corporate for tax purposes;
  • (f) the term "enterprise" applies to the operation of any business;
  • (g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean an enterprise carried on by a resident of a Contracting State and an enterprise by a resident of the other Contracting State, respectively;
  • (h) the term "international traffic" includes any transport by a ship or aircraft, operated by a resident of a Contracting State, except when that transport is operated solely between places situated in the other Contracting State;
  • (i) the term "competent authority" means:
    • (i) in the case of Spain, the Minister of Economy and Finance or the authorized representative thereof;
    • (ii) in the case of El Salvador, the Minister of Finance or the authorized representative thereof.
  • (j) the term "national" means:
    • (i) an individual possessing the nationality of a Contracting State;
    • (ii) any corporate body, company or association deriving its status as such from the laws in force in a Contracting State;
  • (k) the term "economic activity" includes the rendering of professional services, as well as any other activity of an independent nature.

(2) For the application of this Convention by a Contracting State, unless the context otherwise requires, any term not defined herein shall have the meaning that it has under the law of that State with respect to taxes to which this Convention applies. The meaning attributed by the tax laws of that Contracting State shall prevail over any other meaning this term may have in accordance with the other laws of that State.