China's State Administration of Taxation has announced that the MFN clause regarding interest in the 2015 tax treaty between the two countries has been triggered by the 2015 Chile-Italy tax treaty and the 2016 Chile-Japan tax treaty. As a result, the interest withholding tax rates under the treaty are as follows:
- The withholding tax rate on interest is 4% if the beneficial owner is either:
- A bank, insurance company, or other financial institutions (original provision of the treaty);
- An ente…