In an effort to provide certainty and stability of tax treatment for U.S. and Chilean cross-border investors, U.S. Treasury Secretary Tim Geithner and Chilean Finance Minister Andrés Velasco signed on February 4, 2010 a new income tax treaty between the United States and Chile. If and when approved by the U.S. Senate and the Chilean Congress, the Convention will enter into effect and it would be the first bilateral income tax treaty between the United States and Chile and second U.S. tax treaty with a South American country. The following is a highlight of the Convention’s key provisions.
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