January 22, 2016
Ministry of Finance
Tax Convention with Chile was Signed
[Provisional translation]
1. On January 21 (Thu.)(January 22 (Fri.) in Japan), the Government of Japan and the Government of the Republic of Chile signed the Convention between Japan and the Republic of Chile for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance in Santiago. This Convention is the first tax convention concluded between Japan and the Republic of Chile based on the recognition of an increasingly close economic relationship between the two countries.
2. For the purpose of adjusting international double taxation, the Convention clarifies the taxable scope in the two countries. In addition, the conclusion of the Convention will enable the tax authorities of the two countries to consult together on taxation issues arising in the two countries and to exchange information regarding tax matters effectively. It is expected to promote further mutual investments and economic exchanges between the two countries while avoiding double taxation and preventing international tax evasion and tax avoidance.
【Reference 1】 Next Steps
After the completion of the necessary domestic procedures in each of the two countries (in the case of Japan, approval by the Diet is necessary), diplomatic notes indicating such completion are to be exchanged. The Convention shall enter into force on the date of exchange of such diplomatic notes and shall have effect:
(a) in Japan:
(i) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after the first day of January in the calendar year next following that in which the Convention enters into force; and
(ii) with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after the first day of January in the calendar year next following that in which the Convention enters into force; and
(b) in Chile:
with respect to taxes on income obtained and amounts paid, credited to an account, put at the disposal or accounted as an expense, on or after the first day of January in the calendar year next following that in which the Convention enters into force.
【Reference 2】 Texts and Key Points of the Convention
- “Convention between Japan and the Republic of Chile for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance” (Japanese • English (289KB/139KB)
) - Key Points of Tax Convention with Chile