Source: Diario Financiero

From the Office of the Spokesperson of the United States Department of State they announced that this Tuesday the agreement that avoids double taxation between said country and Chile came into force.

“The tax agreement with Chile is the first new bilateral comprehensive tax agreement signed by the United States to enter into force in more than ten years. On June 22, 2023, the United States Senate provided advice and consent for the ratification of the agreement and President Biden signed the instrument of ratification in December,” they said in a statement.

Today, the United States notified our country that it had completed the procedures required to put the agreement into operation.

In the statement, it is highlighted that the new regulations “will reduce tax barriers to cross-border investment between the United States and Chile, facilitating the strengthening of commercial ties.” In turn, “lower tax rates will allow entities doing business in both countries to save more money.”

“American and Chilean companies and industrial associations have long advocated for the approval of this tax agreement, which will make Chilean companies more competitive in the United States and American companies more competitive in Chile,” they celebrated from the Office of the Spokesperson of the State Department.

“The United States continues to be the number one market for Chilean small and medium-sized businesses and those run by women. This agreement will also reduce the cost of doing business for all of them,” the North American government also highlighted.

Thus, Chile becomes the second South American country to have a comprehensive income tax agreement with the United States.