United States and Chile Sign Income Tax Treaty

On February 4, the Treasury Department announced the signing of a new income tax treaty between the United States and Chile. The treaty will be presented to President Obama for his signature before it is sent to the United States Senate, which must advise and consent to its ratification before the treaty enters into force.

The treaty is the first between the United States and Chile, and would become only the second bilateral income tax treaty between the United States and a South American country (the other being Venezuela). This development coincides with Chile’s recent acceptance into the Organisation for Economic Co-operation and Development (OECD), an organization with a commitment to fostering financial stability and contributing to growth in world trade by coordinating domestic and international policies. Signing of the treaty by the Treasury Department represents the most recent progress in the Treasury’s efforts to expand the flow of cross-border investment between the United States and South America.

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