Orbitax Tax News & Alerts
Chile's Tax news & updates from Orbitax and partners
Chile Tax News
Chile and Colombia signed a first-time income and capital tax treaty on 19 April 2007. Further details of the treaty will be reported subsequently.
Protocol between Argentina and Chile published by Argentina
Amendments to income tax credits approved by Congress
Treaty between Chile and Colombia – negotiations concluded
Amendments to income tax of non-residents
Reduction of withholding tax on royalties approved by House of Representatives
Treaty between Thailand and Chile signed
Application of foreign tax credit clarified
Treaty between New Zealand and Chile enters into force
Treaty between Chile and France enters into force
Treaty between France and Chile ratified
Chilean IRS clarified definition and application of PE concept under Chile-Peru treaty
Treaty negotiations between Chile and Thailand
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The first-time income tax treaty and protocol between Chile and Sweden, signed on 4 June 2004, entered into force on 30 December 2005. The treaty generally applies from 1 January 2006.
The Chilean Tax Authorities has issued Circular Letter 63 of 24 November 2005. The Circular provides that, after consultation with the UK tax authorities, the term "United Kingdom", as used in Art. 3 Para. 1(c) of the tax treaty between Chile and the United Kingdom, does not include the "Overseas Territories" and the "Crown Dependencies".
Ruling on regional head offices of foreign companies
Portugal and Chile signed a first-time income tax treaty in Santiago on 7 July 2005. Further details of the treaty will be reported subsequently.
In a joint press release issued on 14 July 2005, the Prime Minister of Australia and the President of the Republic of Chile announced that Chile will host in Santiago in early September 2005 the first round of negotiations for a tax treaty between Australia and Chile.
The maximum rates of withholding tax are:
The calculation of the net effective tax is slightly amended.
The calculation of the net effective tax is slightly amended.
Entry into force on 21 December 2004, effective as from 1 January 2005.
Entry into force on 21 December 2004, effective as from 1 January 2005 in Chile and as from 1 April 2005 (in respect of corporation tax, for any financial year beginning on or after 1st April) or 6 April 2005 (in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April 2005) in the United Kingdom.
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