On June 22, 2023, and more than 13 years after its execution, the Senate of the United States of America (“USA”) approved the Double Taxation Avoidance Agreement (“DTAA”) with Chile, being only pending in the USA the ratification of the DTAA by its President.EE. UU.”) aprobó el Convenio para evitar la doble tributación (“CDT”) con Chile, estando sólo pendiente en EE. UU. la ratificación del CDT por parte de su Presidente.
In the first place, as a result of the modifications suffered by the TDC during its processing in the U.S., additionally, in Chile, its approval by the National Congress would be required.
The TDC would enter into force as of January 1 of the following year in which all the formalities required by the legislations of both countries are fulfilled, making Chile, together with Mexico, the only Latin American countries to have a TDC in force with the USA.
Among the main benefits that the entry into force of the CDT would bring with it would be the reduction of tax rates related to income corresponding to dividends, interest, royalties, capital gains and cross-border services.
Should you require additional information on this matter, please contact Rafael Valdivieso (rvaldivieso@jdf.cl), or Martín Hudson (mhudson@jdf.cl)
