US Senate approves agreement to avoid double taxation with Chile

The agreement will promote investment by residents of one country in the other, trade in services between the two, and technology transfer.

Thirteen years after it was signed, the US Senate plenary session this afternoon ratified the Convention for the Avoidance of Double Taxation between Chile and the United States. This is a very important step for the agreement, which will promote investment by residents of one country in the other, trade in services between the two, and technology transfer.

The bill, which was originally signed in 2010, was passed by the US Senate with 95 votes in favor and only two against. The document must now return to Chile for the final procedures before it enters into force.

The convention was signed to promote and facilitate trade and investment through measures to avoid double taxation, improve information channels between tax authorities in both countries, and prevent tax evasion in both Chile and the United States.

The agreement had been ratified by Chile in 2015, and on June 1 it was approved by the United States Senate Committee on Foreign Relations.

“This agreement will represent an incentive for companies in the United States to invest in innovation sectors; in the case of Chile, energy sectors, service sectors, etc.,” said Chilean Minister of Foreign Affairs Alberto van Klaveren following the approval.

“We had the opportunity to meet with various senators when voting took place. Obviously, we appreciate the sustained support of the US Senate in a very broad, majority vote on this important agreement,” the minister said.

Read the following article to find out more about measures to facilitate investment in Chile.