US-Chile Income Tax Treaty Approval Process Continues

On Oct. 25, the Chilean government submitted the reservations made by the U.S. Senate regarding the U.S.-Chile bilateral income tax treaty (the Tax Treaty) to the Chilean Congress for approval. Chilean tax practitioners expect the Chilean process for approval of the Tax Treaty to be completed this year or in early 2024.

On June 21, the U.S. Senate approved a resolution recommending that the U.S. president ratify the Tax Treaty, subject to certain reservations relating to the base erosion and anti-abuse tax (BEAT) and Article 23 (relief from double taxation) discussed below. The Tax Treaty and its accompanying protocol were originally introduced in 2010, and following certain refinements, were submitted to the U.S. Senate for consideration in 2012 but were not previously approved by the Senate. The Chilean Congress, on the other hand, approved the Tax Treaty in 2015.