Agreements with Italy and Japan to avoid international double taxation
The negotiations conducted by the Ministry of Finance and the Internal Revenue Service (SII) for Chile to sign the agreements to avoid international double taxation with Italy and Japan have concluded successfully.
“The successful completion of negotiations with two of the world’s major economies crown an exceptional year in strengthening our network of treaties to avoid double international taxation, which will cover almost all transactions with our major trading partners. These agreements, once ratified by the respective Congresses, will constitute a special incentive to foreign investment in Chile and the internationalization of Chilean companies,” stated Finance Minister Rodrigo Valdes.
The treaty with Italy will be signed during the visit this week of the president of the Minister Board of Italy, Matteo Renzi, to Chile, which will confirm the excellent state of political and economic relations between the two countries.
During his visit, a series of renewable energy projects promoted by the Italian group Enel will be opened, and the foundation stone of the geothermal power plant Cerro Pavilion, a pioneer in South America in such endeavors, will also be placed.
In the case of Japan, the agreement to avoid double taxation was recently reached after two rounds of working meetings of the technical teams. This development seeks to promote greater investment and increase economic exchanges between the two countries, projecting the centennial political and economic relationship with Japan into the future, as it is one of the largest economies in the world. It is expected that the signing of the agreement occurs within a short period, which shall be informed.
As reported by the Ministry of Finance, this year it has been possible to successfully conclude treaty negotiations in this field with Italy, Japan, Argentina and China, the latter of which have already been signed and are undergoing the approval process by the Congresses of the Contracting Parties. Advances in processing the agreement with South Africa is added as well as the recent approval by the National Congress of the agreement with the US and the imminent entry into force of the one concluded with Austria, after being approved by both Congresses.
Currently, 25 treaties are fully in force to avoid international double taxation, along with further 10 agreements to avoid international double taxation in air and maritime transport. Add to this, a series of agreements on exchange of information is added, which is highly relevant when it comes to taking action against tax evasion.