The treaty allows dividends to be distributed from the U.S. to our country with considerable benefits.
After 13 years of processing, last Thursday, June 22, the U.S. Senate approved with a large majority the treaty that avoids double taxation with Chile, signed by both governments in 2010.
This, after the U.S. Senate Foreign Relations Committee approved it a few days ago. Although the treaty had been approved since 2015 by the Chilean Senate, the agreement was pending approval in the US.
Although dividends distributed from Chile to the United States will maintain a similar tax treatment, dividends distributed from the US to our country will have considerable benefits.
Additionally, the Additional Tax rate associated with the provision of services, royalties and interest will also be reduced, provided that a series of requirements set forth in the same agreement are met.
You can review the details of the agreement here.
For more information, please contact our team at azTax:
David Ancelovici | Director Tax Group | dancelovici@az.cl
Pablo Trucco | Senior Associate | ptrucco@az.cl
Valentina Herrera | Associate | vherrera@az.cl
