e. When the agreement becomes final
In accordance with section 3 of the First Additional Provision of the Consolidated Text of the Non-Resident Income Tax Law, the agreement will be regarded as final from the date on which the competent authority receives the last notification from the other competent authorities informing it of acceptance of the content of the agreement by the interested parties and of their waiver of their right to appeal in relation to the elements of the tax obligation which have been the subject of the mutual agreement procedure, where applicable. In the event that such appeals are already under way, the agreement only becomes final once the person concerned provides the competent authorities of the Member States concerned with evidence that steps have been taken to put an end to those proceedings in relation to the elements of the tax obligation which have been the subject of the mutual agreement procedure.
It should be noted that Spanish law requires, in principle, the acceptance (and withdrawal of pending appeals) not only of the Spanish taxpayer, but also of the taxpayer of the other state.However, some countries do not require such acceptance, for example, where the tax assessment that gave rise to the mutual agreement procedure was carried out by the other state (that is the case, for example, in France) or where the adjustment is withdrawn in full by the state that made the initial adjustment (that is the case, for example, in Italy).
As Spain requires acceptance (and withdrawal of pending appeals) by the taxpayers of the other state, the agreement becomes final when the Spanish competent authority receives confirmation of such acceptance from the competent authority of the other state or when it receives acceptance of the Spanish taxpayer (whichever date is later).