Double taxation agreement between Switzerland and Chile in force
Bern, 04.06.2010 - The double taxation agreement (DTA) between Switzerland and Chile entered into force after Chile also ratified the DTA and officially notified Switzerland thereof. The agreement is intended to enable the avoidance of double taxation in the field of income tax and assets.
The agreement contains provisions for avoiding double taxation and will therefore contribute to the favourable development of bilateral economic relations. In particular, the DTA will improve legal protection for companies and limit the withholding tax on dividends, interest and royalty payments.
The agreement was signed in Santiago on 2 April 2008. In accordance with the Swiss practice at the time, it contains an article that provides for the exchange of information for applying the agreement and enforcing domestic law in the case of tax fraud. Consequently, extended administrative assistance in accordance with the OECD standard was not agreed with Chile.
Both contracting countries wish to bring the agreement into effect as soon as possible and have, for this reason, dispensed with resuming negotiations on extending administrative assistance.
The provisions of the agreement will apply in Switzerland to revenues, assets and withholding tax effective from 1 January 2011.
Address for enquiries
François Bastian, Division for International Affairs, Federal Tax Administration, tel. 031 322 71 52
Publisher
Federal Department of Finance
https://www.efd.admin.ch/efd/en/home.html
