In January 2024, Chile and the United States will initiate a new tax agreement aimed at preventing double taxation.
The Chilean Senate gave its unanimous support to this revised plan. It also adds steps to stop tax evasion.
The Chilean Parliament first approved it in 2015. After changes and U.S. ratification in June, it needed another review.
The proposal, submitted on October 25, quickly became law by November 15.
President Gabriel Boric shared these details in the U.S. He was there for the APEC Forum. Boric said Chile worked for ten years on this agreement.
It will boost investments between both countries. He expressed his government’s joy in achieving this.
The agreement’s aim is clear. It will grow trade and transactions. It will also strengthen tax cooperation.
Another goal is to lower tax barriers. These barriers currently affect investments and activities involving Chile.
Mario Marcel, the Finance Minister, highlighted the benefits. He said it would improve trade ties. It will also remove double taxation.
This will create better conditions for investors. He noted that U.S. investments form 10.9% of Chile’s foreign investments.
He expects this number to rise with the agreement. Foreign Minister Gloria de la Fuente also spoke. She said this move is important.
It marks 200 years of diplomatic ties. It also celebrates 20 years of the free trade agreement. This shows the long-standing relationship between Chile and the U.S.
Background
This agreement reflects a strong history between Chile and the U.S. It shows a commitment to mutual economic growth.
Over the years, both countries have worked to strengthen their ties. This is evident in their long-standing trade and diplomatic relations.
The agreement is a result of these efforts. It serves as a benchmark in international tax agreements.
It shows how countries can work together for mutual benefit. This sets a positive example for other nations.