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Double Tax Convention With Chile Terminated
As informed by the Chilean Embassy, the Argentine Republic has chosen to terminate the convention subscribed between Chile and Argentina for the Avoidance of Double Taxation with respect to taxes on income or benefits and capital. Taxand Argentina provides a brief update on this matter.
According to information provided by the Chilean Embassy, the termination was effectively communicated through a note dated 29 June 2012, sent by Argentina to the Chilean authorities.
Hence, the convention will cease to have effect in both contracting states:
- For individuals and undivided estates: As from 1 January 2013 inclusive
- For legal entities: As from the tax years beginning after the communication of the termination of the convention
Multinationals doing business between Argentina and Chile should take a note of these changes and effect the necessary adjustments to their tax planning strategies where appropriate.