Spain and Peru signed a first-time income and capital tax treaty and protocol on 6 April 2006. The treaty was concluded in the Spanish language. The treaty generally follows the OECD Model Convention. The maximum rates of withholding tax are: -   5% on dividends; -   5% on interest; and -   15% on royalties. The term royalty includes the use of industrial, commercial or scientific equipment. The protocol states that for the first 5 years of application of the treaty the rates would be the following: first year, 30%; second year: 26%; third year: 22%; fourth year: 18%;...