Political Risk Latin America Blog @PolRiskLatam

US, Chile Sign Income-Tax Treaty

Posted in News and Articles, Political Risk by politicalrisklatam on February 5, 2010

by Jeff Bater, for NASDAQ, February 5, 2010.

Washington-(Dow Jones)- The U.S. and Chile signed a treaty Thursday intended to provide certainty of tax treatment for U.S. and Chilean cross-border investors.

If approved by the U.S. Senate, the pact would be the first bilateral income- tax treaty between the two nations.

Provisions of the treaty include reductions in source-country withholding taxes on certain cross-border payments of dividends, interest, and royalties. There are also rules to enhance the mobility of labor by coordinating the tax aspects of the nation’s pension systems.

The treaty contains mechanisms through which tax authorities in the two nations can collaborate to resolve tax disputes. It has provisions to ensure full exchange of information between the countries for tax purposes…(continue reading)

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