Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 147

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 10
Chunk 147
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ina’s stock or ADRs.
Dividends
Dividend distributions to investors who are natural or legal persons residing or domiciled abroad are subject to an additional withholding tax of 35%, with the right to a corporate income tax credit for the corporate tax (First Category Tax, currently at a rate of 27%) paid by Andina. Shareholders can claim a credit for 100% of the corporate tax if they are resident in a country that has a double taxation treaty with Chile, and only 65% of the corporate tax if they are resident in a country without such a treaty. The treaty to avoid double taxation between Chile and the United States came into force in December 2023; therefore, dividends paid by Andina to a shareholder resident in the United States are subject to a withholding tax of 35% minus a credit for 100% of the corporate tax (currently at a rate of 27%) paid by Andina.
Distributions made to investors residing or domiciled in Chile are taxed by personal taxes (“Supplementary Global Tax”) which have progressive rates ranging from 0% to 40%. The tax credit limitation also applies to these investors; thus, they are taxed with an additional tax (“debit”) equivalent to 35% of the corporate tax credit.
Capital Gains
Profits recognized from the sale or exchange of ADRs by a foreign holder made outside Chile are not subject to Chilean taxation. Capital gains generated by the sale of shares on the stock exchange are subject, as a general rule, to a 10% capital gains tax. This tax does not apply if the shareholder is resident in the United States and the conditions established in Article 13, No. 6, letters b) and c) of the treaty between Chile and the United States are met. Essentially, these conditions are met when the shares are sold by an institutional investor on a Chilean stock exchange or another type of investor on a Chilean stock exchange or in a public share offering, insofar as, in the latter case, the shares have been acquired on a Chilean stock exchange, in a public share offering, in a placement of shares from a first issue or in an exchange of bonds convertible into shares.

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The tax cost of common shares received in exchange for ADRs (“conversion”) is determined in accordance with the valuation procedure set out in the Deposit Agreement, which values common shares at the highest selling price according to transactions on the Santiago Stock Exchange on the date of withdrawal of common shares. Consequently,