{"id":4815,"date":"2024-02-06T15:06:52","date_gmt":"2024-02-06T15:06:52","guid":{"rendered":"https:\/\/www.addval.cl\/en\/?p=4815"},"modified":"2024-07-17T19:17:25","modified_gmt":"2024-07-17T19:17:25","slug":"agreement-to-avoid-double-taxation-with-the-united-states","status":"publish","type":"post","link":"https:\/\/www.addval.cl\/en\/2024\/02\/06\/agreement-to-avoid-double-taxation-with-the-united-states\/","title":{"rendered":"Agreement to Avoid Double Taxation with the United States"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"4815\" class=\"elementor elementor-4815\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aa6b719 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aa6b719\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8a5f639\" data-id=\"8a5f639\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e1dcec6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e1dcec6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a55f386\" data-id=\"a55f386\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1bd6011 e-transform elementor-widget elementor-widget-thhf-post-image\" data-id=\"1bd6011\" data-element_type=\"widget\" data-settings=\"{&quot;_transform_scaleX_effect&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;_transform_scaleX_effect_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;_transform_scaleX_effect_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;_transform_scaleY_effect&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;_transform_scaleY_effect_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;_transform_scaleY_effect_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"thhf-post-image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t        <div class=\"hfe-post-image hfe-post-image-wrapper\">\n            <figure class=\"wp-caption\">\n        \n                    <img fetchpriority=\"high\" decoding=\"async\" width=\"1440\" height=\"420\" src=\"https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01.jpg\" class=\"attachment-full size-full wp-image-1355\" alt=\"\" srcset=\"https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01.jpg 1440w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-300x88.jpg 300w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-1024x299.jpg 1024w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-768x224.jpg 768w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-137x40.jpg 137w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-274x80.jpg 274w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-394x115.jpg 394w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-915x267.jpg 915w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/edificio_01-1240x362.jpg 1240w\" sizes=\"(max-width: 1440px) 100vw, 1440px\" \/>                                                    <\/figure>\n        <\/div>\n        \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-328ed41 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"328ed41\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5299447\" data-id=\"5299447\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7840d4f elementor-widget elementor-widget-heading\" data-id=\"7840d4f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Agreement to Avoid Double Taxation with the United States\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-54dbbd3 elementor-widget elementor-widget-text-editor\" data-id=\"54dbbd3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div id=\"pip-toast\"><p><b>Interest &#8211; Rate Limitation:<\/b><span style=\"font-weight: 400;\"> Generally, interest paid by a debtor resident in Chile to a creditor resident in the U.S. is subject to a 35% withholding tax in Chile. On the other hand, when the debtor is resident in the U.S. and the creditor resident in Chile, the general rate is 30%<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The DTA allows access to a withholding tax rate limitation of up to 15% for the first five years of validity, and then it would be 10% (starting from February 2029), incentivizing debt financing between both countries. There is also a preferential rate of 4% for some companies such as banks, insurance companies, financial institutions, or credit institutions that meet certain requirements.<\/span><\/li><\/ul><p><b>Dividends &#8211; Rate Limitation<\/b><span style=\"font-weight: 400;\">: Dividends paid by a corporation resident in the U.S. to one resident in Chile may qualify for rate limitations of 5% or 15%, which is a significant benefit compared to the general rate of 30%.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regarding dividends paid from Chile to the U.S., the general rate of 35% is maintained, with the right to credit the First Category Tax previously paid on the profits from which the dividend is distributed (Chile Clause included in all our DTCs)<\/span><\/li><\/ul><p><b>Capital Gains \u2013 Rate Limitation:<\/b><span style=\"font-weight: 400;\"> Currently, when an entity resident in the U.S. earns capital gains derived from the sale of shares or rights in a Chilean company, it is subject to a withholding tax of 35% in Chile. The DTA would allow access to a rate limitation of 16% for this type of gains.<\/span><\/p><p><b>Royalties \u2013 Rate Limitation<\/b><span style=\"font-weight: 400;\">: The DTA also establishes limitations on the withholding applicable to payments for royalties (remuneration for the use or right to use intellectual or industrial property) by a resident of one country to a resident of the other. Thus, rates would be limited to 2% or 10%, depending on the type of right for which the royalty is paid.<\/span><\/p><p><b>Payment for Services (Business Profits) \u2013 No Withholding Applies:<\/b><span style=\"font-weight: 400;\"> Payment for cross-border services could be subject to Income Tax only in the provider&#8217;s country of residence. Thus, for example, if a company resident in the U.S. provides services to a resident in Chile, it would not be subject to withholding tax in Chile and would only be subject to taxation in the U.S. (provided that the activity is not carried out through a permanent establishment).<\/span><\/p><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-e6410f0\" data-id=\"e6410f0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-02a97e1 elementor-widget elementor-widget-image\" data-id=\"02a97e1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-150x150.png\" class=\"attachment-thumbnail size-thumbnail wp-image-936\" alt=\"\" srcset=\"https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-150x150.png 150w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-300x298.png 300w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-1024x1017.png 1024w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-768x763.png 768w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-40x40.png 40w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-81x80.png 81w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-394x394.png 394w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-305x303.png 305w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-605x605.png 605w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-705x700.png 705w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-956x950.png 956w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler-1087x1080.png 1087w, https:\/\/www.addval.cl\/en\/wp-content\/uploads\/2022\/06\/erick-kessler.png 1192w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-75fd859 elementor-widget elementor-widget-text-editor\" data-id=\"75fd859\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2 style=\"text-align: center;\">Erick Kessler<\/h2><p><span style=\"font-weight: 400;\">Tax expert with advanced studies in Tax Reform and Judicial Expertise. Over 10 years of experience in accounting outsourcing, Due Diligence, tax audits, and tax compliance for companies in various industries, such as investment firms, real estate, technological development, automotive, among others. Degree in Public Accounting, Central University of Chile. Diploma in Tax Management, Thomson Reuters Additional Tax and Agreements to Avoid Double Taxation, Thomson Reuters.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f655eb elementor-align-center elementor-widget__width-inherit elementor-widget elementor-widget-button\" data-id=\"6f655eb\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.linkedin.com\/in\/erick-kessler-6562a4130\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fab fa-linkedin-in\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">View Profile in LinkedIn<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Agreement to Avoid Double Taxation with the United States Interest &#8211; Rate Limitation: &hellip; <a href=\"https:\/\/www.addval.cl\/en\/2024\/02\/06\/agreement-to-avoid-double-taxation-with-the-united-states\/\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":1355,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[34,28],"tags":[],"class_list":["post-4815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actualidad-es","category-tax-es"],"_links":{"self":[{"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/posts\/4815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/comments?post=4815"}],"version-history":[{"count":11,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/posts\/4815\/revisions"}],"predecessor-version":[{"id":5763,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/posts\/4815\/revisions\/5763"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/media\/1355"}],"wp:attachment":[{"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/media?parent=4815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/categories?post=4815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.addval.cl\/en\/wp-json\/wp\/v2\/tags?post=4815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}