CONVENTION BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND THE GOVERNMENT OF THE REPUBLIC OF CHILE 

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE 

PREVENTION OF FISCAL EVASION 

WITH RESPECT TO TAXES ON INCOME AND CAPITAL 

 The Government of the United States of America and the Government of the Republic 

of Chile, desiring to conclude a Convention for the avoidance of double taxation and the 

prevention of fiscal evasion with respect to taxes on income and capital, have agreed as 

follows: 

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I. SCOPE OF THE CONVENTION 

Article 1 

GENERAL SCOPE 

 This Convention shall apply only to persons who are residents of one or both of the 

Contracting States, except as otherwise provided in the Convention. 

Article 2 

TAXES COVERED

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a 

Contracting State irrespective of the manner in which they are levied. 

2. There shall be regarded as taxes on income and on capital all taxes imposed on total 

income, on total capital, or on elements of income or of capital, including taxes on gains from 

the alienation of property as well as taxes on capital appreciation. 

3. The existing taxes to which this Convention shall apply are: 

a) in the United States: the Federal income taxes imposed by the Internal Revenue 

Code (but excluding social security taxes), the Federal excise taxes imposed on 

insurance premiums paid to foreign insurers and with respect to private foundations; 

b) in Chile: the taxes imposed under the Income Tax Act (Ley sobre Impuesto a la 

Renta). 

4. This Convention shall apply also to any identical or substantially similar taxes, and to 

taxes on capital imposed by a Contracting State after the date of signature of the Convention in 

addition to, or in place of, the existing taxes. The competent authorities of the Contracting 

States shall notify each other of any significant changes that have been made in their taxation 

laws. 

II. DEFINITIONS 

Article 3

GENERAL DEFINITIONS 

1. For the purposes of this Convention, unless the context otherwise requires: 

a) the term “United States” means the United States of America, and includes the 

states thereof and the District of Columbia, but does not include Puerto Rico, the Virgin 

Islands, Guam or any other United States possession; 

b) the term “Chile” means the Republic of Chile; 

c) the terms “United States” and “Chile” also include the territorial sea thereof and 

the sea bed and subsoil of the submarine areas adjacent to the territorial sea over which 

they exercise sovereign rights in accordance with international law; 

d) the term "person" includes an individual, a company and any other body of 

persons; 

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e) the term "company" means any body corporate or any entity that is treated as a 

body corporate for tax purposes according to the laws of the state in which it is 

organized; 

f) the terms "enterprise of a Contracting State" and "enterprise of the other 

Contracting State" mean respectively an enterprise carried on by a resident of a 

Contracting State, and an enterprise carried on by a resident of the other Contracting 

State; 

g) the term "international traffic" means any transport by a ship or aircraft, except 

when such transport is solely between places in a Contracting State; 

h) the term "competent authority" means: 

i) in the United States: the Secretary of the Treasury or his delegate; and 

ii) in Chile: the Minister of Finance or his authorized representative; 

i) the term "national" of a Contracting State means: 

i) any individual possessing the nationality or citizenship of that State; and 

 

ii) any legal person, partnership or association deriving its status as such 

from the laws in force in that Contracting State.

j) the term “pension fund” means any person or entity established in a Contracting 

State that is: 

i) generally exempt from income taxation in that State; and 

ii) operated principally either: 

A) to administer or provide pension or retirement benefits; or 

B) to earn income for the benefit of one or more persons or entities 

meeting the requirements of clause i) and subclause A) of clause ii) of 

this subparagraph. 

2. As regards the application of the Convention at any time by a Contracting State, any 

term not defined therein shall, unless the context otherwise requires, have the meaning that it 

has at that time under the law of that State for the purposes of the taxes to which the 

Convention applies, any meaning under the applicable tax laws of that State prevailing over a 

meaning given to the term under other laws of that State. 

Article 4 

RESIDENCE 

1. For the purposes of this Convention, the term "resident of a Contracting State" means 

any person who, under the laws of that State, is liable to tax therein by reason of his domicile, 

residence, citizenship, place of management, place of incorporation, or any other criterion of a 

similar nature, and also includes that State and any political subdivision or local authority 

thereof and any agency or instrumentality of such State, but does not include any person who is 

liable to tax in that State in respect only of income from sources in that State or of capital 

situated therein. 

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2. Where by reason of the provisions of paragraph 1, an individual is a resident of both 

Contracting States, then his status shall be determined as follows: 

a) he shall be deemed to be a resident only of the State in which he has a permanent 

home available to him; if he has a permanent home available to him in both States, he 

shall be deemed to be a resident only of the State with which his personal and economic 

relations are closer (center of vital interests); 

b) if the State in which he has his center of vital interests cannot be determined, or 

if he does not have a permanent home available to him in either State, he shall be 

deemed to be a resident only of the State in which he has an habitual abode; 

c) if he has an habitual abode in both States or in neither of them, he shall be 

deemed to be a resident only of the State of which he is a national; 

d) if he is a national of both States or of neither of them, the competent authorities 

of the Contracting States shall settle the question by mutual agreement. 

3. Where by reason of the provisions of paragraphs 1 and 2 of this Article, a person other 

than an individual is a resident of both Contracting States, the competent authorities of the 

Contracting States shall endeavor to determine by mutual agreement the mode of application of 

this Convention to that person. If the competent authorities do not reach such an agreement, 

that person shall not be entitled to claim any benefit provided by this Convention, except those 

provided by Article 26 (Mutual Agreement Procedure). 

Article 5 

PERMANENT ESTABLISHMENT 

1. For the purposes of this Convention, the term "permanent establishment" means a fixed 

place of business through which the business of an enterprise is wholly or partly carried on. 

2. The term "permanent establishment" includes especially: 

a) a place of management; 

b) a branch; 

c) an office; 

d) a factory; 

e) a workshop; and 

f) a mine, an oil or gas well, a quarry, or any other place of extraction or 

exploitation of natural resources. 

3. A permanent establishment likewise encompasses: 

a) an installation used for the on-land exploration of natural resources only if it 

lasts or the activity continues for more than three months; 

b) a building site or construction or installation project and the supervisory 

activities in connection therewith, or a drilling rig or ship used for the exploration of 

natural resources not referred to in subparagraph a) only if it lasts or the activity 

continues for more than six months; and 

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c) an enterprise that performs services in the other Contracting State, for a period or 

periods exceeding in the aggregate 183 days in any twelve month period, and these 

services are performed through one or more individuals who are present and performing 

such services in that other State. 

 For the purposes of computing the time limits in this paragraph, activities carried on by 

an enterprise associated with another enterprise, within the meaning of Article 9 (Associated 

Enterprises), shall be regarded as carried on by the last-mentioned enterprise if the activities of 

both enterprises are substantially the same, unless they are carried on simultaneously.

4. Notwithstanding the preceding provisions of this Article, the term "permanent 

establishment" shall be deemed not to include: 

a) the use of facilities solely for the purpose of storage, display or delivery of goods 

or merchandise belonging to the enterprise; 

b) the maintenance of a stock of goods or merchandise belonging to the enterprise 

solely for the purpose of storage, display or delivery; 

c) the maintenance of a stock of goods or merchandise belonging to the enterprise 

solely for the purpose of processing by another enterprise; 

d) the maintenance of a fixed place of business solely for the purpose of purchasing 

goods or merchandise, or of collecting information, for the enterprise; 

e) the maintenance of a fixed place of business solely for the purpose of 

advertising, supplying information or carrying out scientific research for the enterprise 

and any other similar activity, if such activity is of a preparatory or auxiliary character. 

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person -- other than an 

agent of an independent status to whom paragraph 6 applies -- is acting on behalf of an 

enterprise and has and habitually exercises in a Contracting State an authority to conclude 

contracts that are binding on the enterprise, that enterprise shall be deemed to have a permanent 

establishment in that State in respect of any activities that the person undertakes for the 

enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 

that, if exercised through a fixed place of business, would not make this fixed place of business 

a permanent establishment under the provisions of that paragraph. 

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting 

State merely because it carries on business in that State through a broker, general commission 

agent, or any other agent of an independent status, provided that such persons are acting in the 

ordinary course of their business as independent agents. 

7. The fact that a company that is a resident of a Contracting State controls or is controlled 

by a company that is a resident of the other Contracting State, or that carries on business in that 

other State (whether through a permanent establishment or otherwise), shall not of itself

constitute either company a permanent establishment of the other. 

III. TAXATION OF INCOME 

Article 6 

INCOME FROM REAL PROPERTY (IMMOVABLE PROPERTY)

1. Income derived by a resident of a Contracting State from real property (immovable 

property), including income from agriculture or forestry, situated in the other Contracting State 

may be taxed in that other State. 

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2. For purposes of this Convention, except as otherwise provided, the term "real property 

(immovable property)” shall have the meaning which it has under the law of the Contracting 

State in which the property in question is situated. The term shall in any case include property 

accessory to real property (immovable property), livestock and equipment used in agriculture 

and forestry, rights to which the provisions of general law respecting landed property apply, 

usufruct of real property (immovable property) and rights to variable or fixed payments as 

consideration for the working of, or the right to work, mineral deposits, sources and other 

natural resources. Ships, aircraft and containers shall not be regarded as real property 

(immovable property). 

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, 

or use in any other form of real property (immovable property). 

4. The provisions of paragraphs 1 and 3 shall also apply to the income from real property 

of an enterprise and to income from real property (immovable property) used for the 

performance of independent personal services. 

Article 7 

BUSINESS PROFITS

1. The business profits of an enterprise of a Contracting State shall be taxable only in that 

State unless the enterprise carries on business in the other Contracting State through a 

permanent establishment situated therein. If the enterprise carries on business as aforesaid, the 

business profits of the enterprise may be taxed in the other State but only so much of them as 

are attributable to that permanent establishment. 

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State 

carries on business in the other Contracting State through a permanent establishment situated 

therein, there shall in each Contracting State be attributed to that permanent establishment the 

business profits that it might be expected to make if it were a distinct and separate enterprise 

engaged in the same or similar activities under the same or similar conditions and dealing 

wholly independently with the enterprise of which it is a permanent establishment. 

3. In determining the business profits of a permanent establishment, there shall be allowed 

as deductions necessary expenses that are incurred for the purposes of the permanent 

establishment, including a reasonable allocation of executive and general administrative 

expenses, research and development expenses, interest, and other expenses incurred for the 

purposes of the enterprise as a whole (or the part thereof which includes the permanent 

establishment), whether incurred in the State in which the permanent establishment is situated 

or elsewhere. 

4. No business profits shall be attributed to a permanent establishment by reason of the 

mere purchase by that permanent establishment of goods or merchandise for the enterprise. 

5. For the purposes of the preceding paragraphs, the profits to be attributed to the 

permanent establishment shall be determined by the same method year by year unless there is 

good and sufficient reason to the contrary. 

6. Where business profits include items of income that are dealt with separately in other 

Articles of the Convention, then the provisions of those Articles shall not be affected by the 

provisions of this Article. 

7. Any income or gain attributable to a permanent establishment or fixed base during its 

existence is taxable in the Contracting State where such permanent establishment or fixed base 

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is situated even if the payments are deferred until such permanent establishment or fixed base 

has ceased to exist. 

8. Notwithstanding the provisions of paragraph 1, in the absence of a permanent 

establishment, the United States may impose its excise tax on insurance premiums paid to 

foreign insurers and Chile may impose its tax on payments for insurance policies contracted 

with foreign insurers. However, notwithstanding the provisions of Article 2 (Taxes Covered), 

the tax so charged shall not exceed: 

a) 2 percent of the gross amount of the premiums in the case of policies of 

reinsurance; and 

b) 5 percent of the gross amount of the premiums in the case of all other policies of 

insurance. 

9. For the purposes of the Convention, the term “business profits” means income from any 

trade or business. 

Article 8 

INTERNATIONAL TRANSPORT 

1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in 

international traffic shall be taxable only in that State. 

2. For purposes of this Article, profits from the operation of ships or aircraft include, but 

are not limited to: 

a) profits from the rental of ships or aircraft on a full (time or voyage) basis; and 

b) profits from the charter or rental on a bareboat basis of ships or aircraft if those 

profits are incidental to profits from the operation by the enterprise of ships or aircraft 

in international traffic. 

3. Profits of an enterprise of a Contracting State from the use, maintenance, or rental of 

containers (including related equipment for the transport of such containers) used for the 

transport of goods or merchandise in international traffic shall be taxable only in that State. 

4. The provisions of paragraphs 1 and 3 shall also apply to profits from participation in a 

pool, a joint business, or an international operating agency. 

Article 9 

ASSOCIATED ENTERPRISES

1. Where: 

a) an enterprise of a Contracting State participates directly or indirectly in the 

management, control or capital of an enterprise of the other Contracting State; or 

b) the same persons participate directly or indirectly in the management, control, or 

capital of an enterprise of a Contracting State and an enterprise of the other Contracting 

State, 

and in either case conditions are made or imposed between the two enterprises in their 

commercial or financial relations that differ from those that would be made between 

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independent enterprises, then, any profits that, but for those conditions, would have accrued to 

one of the enterprises, but by reason of those conditions have not so accrued, may be included 

in the profits of that enterprise and taxed accordingly. 

2. Where a Contracting State includes in the profits of an enterprise of that State, and taxes 

accordingly, profits on which an enterprise of the other Contracting State has been charged to 

tax in that other State, and the profits so included are profits that would have accrued to the 

enterprise of the first-mentioned State if the conditions made between the two enterprises had 

been those that would have been made between independent enterprises, then that other State, if 

it agrees with such inclusion, shall make an appropriate adjustment to the amount of the tax 

charged therein on those profits. In determining such adjustment, due regard shall be had to the 

other provisions of this Convention and the competent authorities of the Contracting States 

shall if necessary consult each other. 

Article 10 

DIVIDENDS

1. Dividends paid by a resident of a Contracting State to a resident of the other Contracting 

State may be taxed in that other State. 

2. However, such dividends may also be taxed in the Contracting State of which the 

company paying the dividend is a resident and according to the laws of that State, but if the 

dividends are beneficially owned by a resident of the other Contracting State, except as 

otherwise provided, the tax so charged shall not exceed: 

a) 5 percent of the gross amount of the dividends if the beneficial owner is a 

company that owns directly at least 10 percent of the voting stock of the company 

paying the dividends; 

b) 15 percent of the gross amount of the dividends in all other cases. 

 This paragraph shall not affect the taxation of the company in respect of the profits out 

of which the dividends are paid. 

3. Notwithstanding paragraph 2, dividends may not be taxed in the Contracting State of 

which the payer is a resident if the beneficial owner of the dividends is an entity that is 

established and maintained in the other Contracting State principally to provide or administer 

pensions or other similar benefits to employed and self employed persons, or to earn income for 

the benefit of one or more such arrangements, and that is generally exempt from tax in that 

other State, provided that such dividends are not derived from the carrying on of a trade or 

business by the beneficial owner or through an associated enterprise. 

4. For purposes of this Article, the term "dividends" means income from shares or other 

rights, not being debt-claims, participating in profits, as well as income from rights that is 

subjected to the same taxation treatment as income from shares under the laws of the State of 

which the company making the distribution is a resident. 

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the 

dividends, being a resident of a Contracting State, carries on business in the other Contracting 

State of which the company making the distribution is a resident, through a permanent 

establishment situated therein, or performs in that other State independent personal services 

from a fixed base situated therein, and the dividends are attributable to such permanent 

establishment or fixed base. In such case the provisions of Article 7 (Business Profits) or 

Article 14 (Independent Personal Services), as the case may be, shall apply. 

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6. Where a company that is a resident of a Contracting State derives profits or income 

from the other Contracting State, that other State may not impose any tax on the dividends paid 

by the company, except insofar as such dividends are paid to a resident of that other State or 

insofar as the holding in respect of which the dividends are paid is attributable to a permanent 

establishment or a fixed base situated in that other State, nor subject the company’s 

undistributed profits to a tax on undistributed profits, even if the dividends paid or the 

undistributed profits consist wholly or partly of profits or income arising in such other State. 

7. Notwithstanding paragraph 6, a company which is a resident of a Contracting State and 

which has a permanent establishment in the other Contracting State or which is subject to tax 

on a net basis in that other State on items of income or gains that may be taxed in that other 

State under Article 6 ((Income from Real Property (Immovable Property)) or under paragraph 1 

of Article 13 (Capital Gains) may be subject in that other State to a tax in addition to the tax 

allowable under the other provisions of this Convention. Such tax, however, may be imposed 

only on: 

a) in the case of the United States: 

i) the portion of the business profits of the company attributable to the 

permanent establishment; and 

ii) the portion of the income or gains referred to in the preceding sentence 

which may be subject to tax under Article 6 or under paragraph 1 of Article 13; 

which represents the “dividend equivalent amount”, as that term is defined under the 

laws of the United States, as they may be amended from time to time without changing 

the general principle thereof; and 

b) in the case of Chile: 

i) the portion of the business profits of the company attributable to the 

permanent establishment; and 

ii) the portion of the income or gains referred to in the first sentence of this 

paragraph which may be taxed in Chile under Article 6 or under paragraph 1 of 

Article 13; 

which represents an amount that is comparable to the amount that would be 

distributable as a dividend if such income were earned by a subsidiary company resident 

of Chile. 

8. The tax referred to in paragraph 7 may not be imposed at a rate in excess of the rate 

specified in subparagraph a) of paragraph 2. 

Article 11 

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting 

State may be taxed in that other State. 

2. However, such interest may also be taxed in the Contracting State in which it arises and 

according to the laws of that State, but if the beneficial owner of the interest is a resident of the 

other Contracting State, the tax so charged shall not exceed: 

a) 4 percent of the gross amount of the interest if the interest is beneficially owned 

by a resident of the other Contracting State that is either: 

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i) a bank; 

ii) an insurance company; 

iii) an enterprise substantially deriving its gross income from the active and 

regular conduct of a lending or finance business involving transactions with 

unrelated parties, where the enterprise is unrelated to the payer of the interest. For 

purposes of this subparagraph iii), the term “lending or finance business” includes 

the business of issuing letters of credit or providing guarantees, or providing 

charge and credit card services; 

iv) an enterprise that sold machinery or equipment, where the interest is paid 

in connection with the sale on credit of such machinery or equipment; or 

v) any other enterprise, provided that in the three taxable years preceding 

the taxable year in which the interest is paid, the enterprise derives more than 50 

percent of its liabilities from the issuance of bonds in the financial markets or from 

taking deposits at interest, and more than 50 percent of the assets of the enterprise 

consist of debt-claims against persons that do not have with the resident a 

relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9 

(Associated Enterprises); 

b) 10 percent in all other cases. 

3. For a period of five years from the date on which the provisions of paragraph 2 take 

effect, the rate of 15 percent shall apply in place of the rate provided in subparagraph b) of 

paragraph 2. 

4. Notwithstanding subparagraph a) of paragraph 2, interest referred to in that subparagraph 

may be taxed in the State in which it arises at a rate not exceeding 10 percent of the gross 

amount of the interest if the interest is paid as part of an arrangement involving back-to-back 

loans or other arrangement that is economically equivalent and intended to have a similar effect 

to back-to-back loans. 

5. The term "interest" as used in this Article means income from debt-claims of every 

kind, whether or not secured by mortgage, and, in particular, income from government 

securities and income from bonds or debentures, including premiums attaching to such 

securities, bonds or debentures, and all other income that is subjected to the same taxation 

treatment as income from money lent by the taxation law of the Contracting State in which the 

income arises. Income from debt-claims that carry a right to participate in the debtor's profits 

shall be regarded as interest under this Article if the contract by its character clearly evidences a 

loan at interest. Income dealt with in Article 10 (Dividends) shall not be regarded as interest for 

the purposes of this Convention. 

6. The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the 

interest, being a resident of a Contracting State, carries on business in the other Contracting 

State, in which the interest arises, through a permanent establishment situated therein, or 

performs in that other State independent personal services from a fixed base situated therein, 

and the interest is attributable to such permanent establishment or fixed base. In such case the 

provisions of Article 7 (Business Profits) or Article 14 (Independent Personal Services), as the 

case may be, shall apply. 

7. Interest shall be deemed to arise in a Contracting State when the payer is a resident of 

that State. Where, however, the person paying the interest, whether he is a resident of a 

Contracting State or not, has in a Contracting State a permanent establishment or a fixed base 

in connection with which the indebtedness on which the interest is paid was incurred, and such 

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interest is borne by such permanent establishment or fixed base, then such interest shall be 

deemed to arise in the State in which the permanent establishment or fixed base is situated. 

8. Where, by reason of a special relationship between the payer and the beneficial owner 

or between both of them and some other person, the amount of the interest for whatever reason 

exceeds the amount that would have been agreed upon by the payer and the beneficial owner in 

the absence of such relationship, the provisions of this Article shall apply only to the 

last-mentioned amount. In such case the excess part of the payments shall remain taxable 

according to the laws of each Contracting State, due regard being had to the other provisions of 

this Convention. 

9. a) Interest paid by a resident of a Contracting State and that is determined with 

reference to receipts, sales, income, profits or other cash flow of the debtor or a related person, 

to any change in the value of any property of the debtor or a related person or to any dividend, 

partnership distribution or similar payment made by the debtor to a related person, may also be 

taxed in the Contracting State in which it arises, and according to the laws of that State, but if 

the beneficial owner is a resident of the other Contracting State, the gross amount of the interest 

may be taxed at a rate not exceeding the rate prescribed in subparagraph b) of paragraph 2 of 

Article 10 (Dividends); and 

b) Notwithstanding the provisions of paragraph 2 of this Article, a Contracting 

State may tax, in accordance with its domestic law, interest paid with respect to the ownership 

interests in a vehicle used for the securitization of real estate mortgages or other assets, to the 

extent that the amount of interest paid exceeds the return on comparable debt instruments as 

specified by the domestic law of that State. 

10. The excess, if any, of the amount of interest allocable to the profits of a company 

resident in a Contracting State that are: 

a) attributable to a permanent establishment in the other Contracting State 

(including gains under paragraph 3 of Article 13 (Capital Gains); or 

b) subject to tax in the other Contracting State under Article 6 (Income from Real 

Property) or paragraph 1 of Article 13 (Capital Gains), 

over the interest paid by that permanent establishment, or in the case of profits subject to tax 

under Article 6 or paragraph 1 of Article 13, over the interest paid by that trade or business in 

that State shall be deemed to arise in that State and be beneficially owned by a resident of the 

first-mentioned State. The tax imposed under this Article on such interest shall not exceed the 

applicable rates provided in paragraph 2. 

Article 12 

ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting 

State may be taxed in that other State. 

2. However, such royalties may also be taxed in the Contracting State in which they arise 

and according to the laws of that State, but if the beneficial owner of the royalties is a resident 

of the other Contracting State, the tax so charged shall not exceed: 

a) 2 percent of the gross amount of the royalties described in subparagraph a) of 

paragraph 3; 

b) 10 percent of the gross amount of the royalties described in subparagraph b) of 

paragraph 3. 

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3. The term "royalties" as used in this Article means: 

a) payments of any kind received as a consideration for the use of, or the right to 

use, industrial, commercial or scientific equipment, but not including ships, aircraft or 

containers as dealt with in Article 8 (International Transport); and 

b) payments of any kind received as a consideration for the use of, or the right to 

use, any copyright of literary, artistic, scientific or other work (including computer 

software, cinematographic films, audio or video tapes or disks, and other means of 

image or sound reproduction), any patent, trademark, design or model, plan, secret 

formula or process, or other like intangible property, or for information concerning 

industrial, commercial, or scientific experience. The term “royalties” also includes gain 

derived from the alienation of any property described in this subparagraph, provided 

that such gain is contingent on the productivity, use, or disposition of the property.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the 

royalties, being a resident of a Contracting State, carries on business in the other Contracting 

State in which the royalties arise through a permanent establishment situated therein, or 

performs in that other State independent personal services from a fixed base situated therein, 

and the royalties are attributable to such permanent establishment or fixed base. In such case 

the provisions of Article 7 (Business Profits) or Article 14 (Independent Personal Services), as 

the case may be, shall apply.

5. For purposes of this Article: 

a) Royalties shall be treated as arising in a Contracting State when the payer is a 

resident of that State. Where, however, the person paying the royalties, whether he is a 

resident of a Contracting States or not, has in a Contracting State a permanent 

establishment or a fixed base in connection with which the liability to pay the royalties 

was incurred, and such royalties are borne by such permanent establishment or fixed 

base, then such royalties shall be deemed to arise in the State in which the permanent 

establishment or fixed base is situated. 

b) Where subparagraph a) does not operate to treat royalties as arising in a 

Contracting State, and the royalties are for the use of, or the right to use, in a 

Contracting State any property or right described in paragraph 3, then such royalties 

shall be deemed to arise in that State and not in the State of which the payer is resident. 

6. Where, by reason of a special relationship between the payer and the beneficial owner 

or between both of them and some other person, the amount of the royalties, having regard to 

the use, right, or information for which they are paid, exceeds the amount which would have 

been agreed upon by the payer and the beneficial owner in the absence of such relationship, the 

provisions of this Article shall apply only to the last-mentioned amount. In such case the 

excess part of the payments shall remain taxable according to the laws of each Contracting 

State, due regard being had to the other provisions of the Convention. 

Article 13 

CAPITAL GAINS

1. Gains derived by a resident of a Contracting State that are attributable to the alienation 

of real property (immovable property) situated in the other Contracting State may be taxed in 

that other State. 

2. For purposes of this Article, the term "real property (immovable property) situated in 

the other Contracting State" includes: 

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a) real property (immovable property) referred to in Article 6 (Income from Real 

Property (Immovable Property)); 

b) in the United States, a United States real property interest, as defined in section 

897 of the U.S. Internal Revenue Code and the regulations thereunder, as they may be 

amended from time to time without changing the general principles thereof; and 

c) in the case of Chile, any equivalent interest in real property (immovable 

property) situated in Chile, including shares or other rights deriving more than 50 per 

cent of their value directly or indirectly from real property (immovable property) 

situated in Chile. 

3. Gains from the alienation of personal property (movable property) that are attributable 

to a permanent establishment that an enterprise of a Contracting State has in the other 

Contracting State, or that are attributable to a fixed base that is available to a resident of a 

Contracting State in the other Contracting State for the purpose of performing independent 

personal services, and gains from the alienation of such a permanent establishment (alone or 

with the whole enterprise) or of such a fixed base, may be taxed in that other State. 

4. Gains from the alienation of ships, aircraft, or containers operated or used in 

international traffic or from personal property (movable property) pertaining to the operation or 

use of such ships, aircraft, or containers shall be taxable only in the Contracting State of which 

the alienator is a resident. 

5. Gains derived by a resident of a Contracting State from the alienation of shares or other 

rights or interests representing the capital of a company that is a resident of the other 

Contracting State may be taxed in that other State but the tax so charged shall not exceed 16 

percent of the amount of the gain. 

6. Notwithstanding the provisions of paragraph 5, 

a) gains derived by a pension fund that is a resident of a Contracting State from the 

alienation of shares or other rights representing the capital of a company that is a resident of 

the other Contracting State shall be taxable only in the first-mentioned State;

b) gains derived by a mutual fund or other institutional investor that is a resident of 

a Contracting State from the alienation of shares of a company that is a resident of the 

other Contracting State and whose shares are substantially and regularly traded on a 

recognized stock exchange located in that other Contracting State shall be taxable only 

in the first-mentioned State, provided that the alienation occurred on a recognized stock 

exchange located in that other Contracting State; and 

c) gains derived by a resident of a Contracting State from the alienation of shares of 

a company that is a resident of the other Contracting State and whose shares are 

substantially and regularly traded on a recognized stock exchange located in that other 

Contracting State shall be taxable only in the first-mentioned State if the shares were 

sold: 

i) on a recognized stock exchange in that other Contracting State; or 

ii) in a public offer for the acquisition of shares regulated by law; 

 provided that such shares were previously acquired either: 

A) on a recognized stock exchange in that other Contracting State; 

B) in a public offer for the acquisition of shares regulated by law; 

13 
C) in a placement of first issue shares by that company at the time of the 

constitution of that company or of an increase in the capital of that 

company; or 

D) in an exchange of bonds convertible into shares. 

7. Notwithstanding the provisions of paragraph 5, 

a) gains derived by a resident of a Contracting State if the recipient of the gain at any 

time during the 12-month period preceding such alienation owned shares, directly or 

indirectly, consisting of more than 50 percent of the capital of a company that is a 

resident of the other Contracting State; and 

b) gains derived by a resident of a Contracting State from the alienation of other rights 

not being debt claims representing the capital of a company that is a resident of the 

other Contracting State if the recipient of the gain at any time during the 12-month 

period preceding such alienation owned other such rights, directly or indirectly, 

consisting of 20 percent or more of the capital of that company; 

 may be taxed in that other State. 

8. Gains from the alienation of any property other than property referred to in paragraphs 1 

through 7 shall be taxable only in the Contracting State of which the alienator is a resident.

9. Where an individual who, upon ceasing to be a resident of one of the Contracting States, 

is treated under the taxation law of that State as having alienated any property for its fair 

market value and is taxed in that State by reason thereof, the individual may elect to be treated 

for purposes of taxation in the other Contracting State as if the individual had, immediately 

before ceasing to be a resident of the first-mentioned State, alienated and reacquired such 

property for an amount equal to its fair market value at such time. However, the individual 

may not make the election in respect of property situated in that other Contracting State. 

Article 14 

INDEPENDENT PERSONAL SERVICES 

1. Income derived by a resident of a Contracting State in respect of professional services 

or other activities of an independent character shall be taxable only in that State, except in the 

following circumstances, when such income may also be taxed in the other Contracting State: 

a) if that resident of a Contracting State has a fixed base regularly available to him 

in the other Contracting State for the purpose of performing his activities, in that case, 

only so much of the income as is attributable to that fixed base that is derived in respect 

of services performed in any state other than the first-mentioned Contracting State may 

be taxed in that other Contracting State; or 

b) if that resident of a Contracting State is present in the other Contracting State for 

a period or periods equaling or exceeding in the aggregate 183 days in any twelve 

month period commencing or ending in the taxable year concerned; in that case only so 

much of the income as is derived from his activities performed in that other State may 

be taxed in that other State. 

2. For purposes of paragraph 1, the income that is taxable in the other Contracting State 

shall be determined under the principles of paragraph 3 of Article 7 (Business Profits), 

provided that related administrative requirements have been satisfied. 

14 
3. The term "professional services" includes especially independent scientific, literary, 

artistic, educational or teaching activities as well as the independent activities of physicians, 

lawyers, engineers, architects, dentists and accountants.

Article 15 

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16 (Directors' Fees), 18 (Pensions, Social Security, 

Alimony and Child Support) and 19 (Government Service), salaries, wages, and other 

remuneration derived by a resident of a Contracting State in respect of an employment shall be 

taxable only in that State unless the employment is exercised in the other Contracting State. If 

the employment is so exercised, such remuneration as is derived therefrom may be taxed in that 

other State. 

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a 

Contracting State in respect of an employment exercised in the other Contracting State shall be 

taxable only in the first-mentioned State if: 

a) the recipient is present in the other State for a period or periods not exceeding in 

the aggregate 183 days in any twelve month period commencing or ending in the 

taxable year concerned; 

b) the remuneration is paid by, or on behalf of, a person who is an employer who is 

not a resident of the other State; and 

c) the remuneration is not borne by a permanent establishment or a fixed base 

which the person who is the employer has in the other State. 

3. Notwithstanding the preceding provisions of this Article, remuneration described in 

paragraph 1 that is derived by a resident of a Contracting State in respect of an employment as 

a member of the regular complement of a ship or aircraft operated in international traffic shall 

be taxable only in that State. 

Article 16 

DIRECTORS' FEES

1. Directors’ fees and other similar payments derived by a resident of a Contracting State 

in his capacity as a member of the board of directors or an equivalent body of a company that is 

a resident of the other Contracting State may be taxed in the State where such fees or payments 

arise. 

2. Directors’ fees and other similar payments shall be deemed to arise in the Contracting 

State in which the company is resident except to the extent that such fees or payments are paid 

in respect of attendance at meetings held in the other Contracting State. 

Article 17 

ARTISTES AND SPORTSMEN 

1. Income derived by a resident of a Contracting State as an entertainer, such as a theater, 

motion picture, radio, or television artiste, or a musician, or as a sportsman, from his personal 

activities as such exercised in the other Contracting State, which income would be exempt from 

tax in that other Contracting State under the provisions of Articles 14 (Independent Personal 

15 
Services) and 15 (Dependent Personal Services), may be taxed in that other State, except where 

the amount of the gross receipts derived by such entertainer or sportsman, including expenses 

reimbursed to him or borne on his behalf, from such activities does not exceed five thousand 

United States dollars ($5,000) or its equivalent in Chilean pesos for the taxable year concerned. 

2. Where income in respect of activities exercised by an entertainer or a sportsman in his 

capacity as such accrues not to the entertainer or sportsman himself but to another person, that 

income, notwithstanding the provisions of Articles 7 (Business Profits) and 14 (Independent 

Personal Services), may be taxed in the Contracting State in which the activities of the 

entertainer or sportsman are exercised, unless that other person or the entertainer or sportsman 

establishes that neither the entertainer or sportsman nor persons related thereto participate 

directly or indirectly in the receipts or profits of that other person in any manner, including the 

receipt of deferred remuneration, bonuses, fees, dividends, partnership distributions, or other 

distributions. 

Article 18 

PENSIONS, SOCIAL SECURITY, ALIMONY AND CHILD SUPPORT 

1. a) Pension payments and other similar remuneration derived from sources within a 

Contracting State beneficially owned by a resident of the other Contracting State may be 

taxed by both Contracting States. Any tax so charged by the first-mentioned State may 

not exceed 15 percent of the gross amount of such pension payment or other similar 

remuneration. 

 b) If, however, the payment is from a plan established in a Contracting State that is 

exempt from income taxation in that State and operated to provide pension or retirement 

benefits, the amount of any such payment that would be excluded from taxable income 

in that State if the recipient were a resident thereof shall be exempt from taxation in the 

other State. 

2. Notwithstanding the provisions of paragraph 1: 

a) any pension paid from the public funds of a Contracting State or a political 

subdivision or a local authority thereof to an individual in respect of services rendered 

to that State or subdivision or authority in the discharge of functions of a governmental 

nature other than a payment to which paragraph 3 of this Article applies shall, subject to 

the provisions of subparagraph b), be taxable only in that State; 

b) such pension, however, shall be taxable only in the other Contracting State if the 

individual is a resident of, and a national of, that State. 

3. Notwithstanding the provisions of paragraphs 1 and 2, payments made under provisions 

of the social security or similar legislation of a Contracting State to a resident of the other 

Contracting State or to a citizen of the United States shall be taxable only in the first-mentioned 

State. Payments made under provisions of the social security or similar legislation of a 

Contracting State include payments made pursuant to a pension plan or fund created under the 

social security system of that Contracting State. 

4. Where a resident of a Contracting State is a beneficiary of a plan established in the other 

Contracting State that is generally exempt from income taxation in that other State and operated 

to provide pension or retirement benefits, income earned but not distributed by the plan shall be 

taxable in either State only at such time as and, subject to paragraph 1, to the extent that a 

payment or other similar remuneration is made from the plan (and not transferred to another 

pension fund in that other State). 

16 
5. Contributions in respect of services rendered paid by, or on behalf of, an individual who 

is a resident of a Contracting State or who is temporarily present in that State to a pension plan or 

fund that is generally exempt from income taxation in the other Contracting State and operated 

primarily to provide pension or retirement benefits in that other State (whether or not sponsored 

by an employer) shall, during a period not exceeding in the aggregate 60 months, be treated in the 

same way for tax purposes in the first-mentioned State as a contribution paid to a pension plan 

that is generally exempt from income taxation in the first-mentioned State and operated 

primarily to provide pension or retirement benefits in that first-mentioned State, if: 

a) such individual was contributing on a regular basis to the pension plan (or to 

another similar pension plan for which the first-mentioned pension plan was substituted) 

for a period ending immediately before that individual became a resident of or is 

temporarily present in the first-mentioned State; and 

b) the competent authority of the first-mentioned State agrees or has agreed that the 

pension plan generally corresponds to a pension plan recognized for tax purposes by that 

State. 

The relief available under this paragraph shall not exceed the relief that would be allowed by 

the first-mentioned State to residents of that State for contributions to, or benefits accrued 

under, a pension plan established in that State. 

6. Periodic payments made pursuant to a written separation agreement or a decree of 

divorce, separate maintenance or compulsory support, including payments for the support of a 

child, paid by a resident of a Contracting State to a resident of the other Contracting State, shall 

be exempt from tax in both Contracting States, except that, if the payer is entitled to relief from 

tax for such payments in the first-mentioned State, such payments shall be taxable only in the 

other State. 

Article 19 

GOVERNMENT SERVICE 

1. a) Salaries, wages and other remuneration, other than a pension, paid by a Contracting 

State or a political subdivision or a local authority thereof to an individual in respect of services 

rendered to that State or subdivision or authority in the discharge of functions of a governmental 

nature shall be taxable only in that State. 

b) Such remuneration, however, shall be taxable only in the other Contracting State 

if the services are rendered in that State and the individual is a resident of that State 

who: 

i) is a national of that State; or 

ii) did not become a resident of that State solely for the purpose of rendering 

the services. 

2. The provisions of Articles 15 (Dependent Personal Services), 16 (Directors’ Fees) and 17 

(Artistes and Sportsmen) shall apply to salaries, wages and other remuneration in respect of 

services rendered in connection with a business carried on by a Contracting State or a political 

subdivision or a local authority thereof.

17 
Article 20 

STUDENTS AND TRAINEES 

 Payments received by a student, apprentice, or business trainee who is, or was 

immediately before visiting a Contracting State, a resident of the other Contracting State, and 

who is present in the first-mentioned State for the purpose of his full-time education at a 

recognized educational institution, such as a university, college or school, or for his full-time 

training, receives for the purposes of his maintenance, education or training shall not be taxed 

in that State, provided that such payments arise from, or are remitted from, sources outside that 

State. The exemption from tax provided by this paragraph shall apply to an apprentice or 

business trainee only for a period of time not exceeding two years from the date the apprentice 

or business trainee first arrives in the first-mentioned Contracting State for the purpose of 

training. 

Article 21 

OTHER INCOME 

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in 

the foregoing Articles of this Convention shall be taxable only in that State. 

2. The provisions of paragraph 1 shall not apply to income, other than income from 

immovable property as defined in paragraph 2 of Article 6 (Income from Real Property 

(Immovable Property)), if the recipient of such income, being a resident of a Contracting State, 

carries on business in the other Contracting State through a permanent establishment situated 

therein, or performs in that other State independent personal services from a fixed base situated 

therein, and the right or property in respect of which the income is paid is effectively connected 

with such permanent establishment or fixed base. In such case the provisions of Article 7 

(Business Profits) or Article 14 (Independent Personal Services), as the case may be, shall apply.

3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of resident of a 

Contracting State not dealt with in the foregoing Articles of this Convention and arising in the 

other Contracting State may also be taxed in that other State.

IV. TAXATION OF CAPITAL 

Article 22 

CAPITAL

1. Capital represented by real property (immovable property) referred to in Article 6 

(Income from Real Property (Immovable Property)), owned by a resident of a Contracting State 

and situated in the other Contracting State, may be taxed in that other State. 

2. Capital represented by personal property (movable property) forming part of the 

business property of a permanent establishment which an enterprise of a Contracting State has 

in the other Contracting State, or by personal property (movable property) pertaining to a fixed 

base available to a resident of a Contracting State in the other Contracting State for the purpose 

of performing independent personal services, may be taxed in that other State. 

3. Capital represented by ships, aircraft, and containers owned by a resident of a 

Contracting State and operated in international traffic, and by personal property (movable 

property) pertaining to the operation of such ships, aircraft, and containers shall be taxable only 

in that State.

18 
4. All other elements of capital of a resident of a Contracting State shall be taxable only in 

that State. 

V. METHODS FOR ELIMINATION OF DOUBLE TAXATION 

Article 23

RELIEF FROM DOUBLE TAXATION

1. In accordance with the provisions and subject to the limitations of the law of the United 

States (as it may be amended from time to time without changing the general principle hereof), 

the United States shall allow to a resident or citizen of the United States as a credit against the 

United States tax on income applicable to residents and citizens: 

a) the income tax paid or accrued to Chile by or on behalf of such citizen or 

resident; and 

b) in the case of a United States company owning at least 10 percent of the voting 

stock of a company that is a resident of Chile and from which the United States 

company receives dividends, the income tax paid or accrued to Chile by or on behalf of 

the payer with respect to the profits out of which the dividends are paid. 

For the purposes of this paragraph, the taxes referred to in subparagraph b) of paragraph 3 and 

paragraph 4 of Article 2 (Taxes Covered), excluding taxes on capital, shall be considered 

income taxes.

2. In Chile, double taxation shall, in accordance with the provisions and subject to the 

limitations of the law of Chile (as it may be amended from time to time without changing the 

general principle hereof), be eliminated as follows: 

Where a resident of Chile derives income which, in accordance with the provisions of this 

Convention, may be taxed in the United States, Chile shall allow as a credit against the Chilean 

income tax of that person the United States tax paid under United States law and in accordance 

with the Convention, in respect of that income or any other income from sources outside Chile. 

This paragraph shall apply to all income referred to in the Convention. 

3. Where a United States citizen is a resident of Chile: 

a) with respect to items of income that under the provisions of this Convention are 

exempt from United States tax or that are subject to a reduced rate of United States tax 

when derived by a resident of Chile who is not a United States citizen, Chile shall allow 

as a credit against Chilean tax, only the tax paid, if any, that the United States may 

impose under the provisions of this Convention, other than taxes that may be imposed 

solely by reason of citizenship under the saving clause of paragraph 4 of the Protocol; 

b) for purposes of computing United States tax on those items of income referred to 

in subparagraph a), the United States shall allow as a credit against United States tax the 

income tax paid to Chile after the credit referred to in subparagraph a); the credit so 

allowed shall not reduce the portion of the United States tax that is creditable against 

the Chilean tax in accordance with subparagraph a); and 

c) for the exclusive purpose of relieving double taxation in the United States under 

subparagraph b), items of income referred to in subparagraph a) shall be deemed to 

arise in Chile to the extent necessary to avoid double taxation of such income under 

subparagraph b). 

19 
4. Where in accordance with any provision of the Convention income derived or capital 

owned by a resident of a Contracting State is exempt from tax in that State, such State may 

nevertheless, in calculating the amount of tax on the remaining income or capital of such person, 

take into account the exempted income or capital. 

5. For the purposes of allowing relief from double taxation pursuant to this Article, an item 

of gross income, as determined under the laws of a Contracting State, derived by a resident of 

that State that under this Convention may be taxed in the other Contracting State (other than 

solely by reason of paragraph 4 of the Protocol), shall be deemed to be income from sources in 

that other State. 

VI. SPECIAL PROVISIONS 

Article 24 

LIMITATION ON BENEFITS 

1. Except as otherwise provided in this Article, a resident of a Contracting State shall not 

be entitled to the benefits of this Convention otherwise accorded to residents of a Contracting 

State unless such resident is a “qualified person” as defined in paragraph 2. 

2. A resident of a Contracting State shall be a qualified person for a taxable year if the 

resident is: 

a) an individual; 

b) that State, or any political subdivision or local authority thereof or any agency or 

instrumentality of such State; 

c) a company, if 

i) the principal class of its shares (and any disproportionate class of shares) 

is regularly traded on one or more recognized stock exchanges, and either: 

A) its principal class of shares is primarily traded on one or more 

recognized stock exchanges located in the Contracting State of which the 

company is resident; or 

B) the company’s primary place of management and control is in the 

Contracting State of which it is a resident; or 

ii) at least 50 percent of the aggregate vote and value of the shares (and at 

least 50 percent of any disproportionate class of shares) in the company is owned 

directly or indirectly by five or fewer companies entitled to benefits under clause i) 

of this subparagraph, provided that, in the case of indirect ownership, each 

intermediate owner is a resident of either Contracting State; 

d) a person that functions as a headquarters company for a multinational corporate 

group. For purposes of this paragraph, a person shall be considered a headquarters 

company if: 

i) it provides in its state of residence a substantial portion of the overall 

supervision and administration of a group of companies (which may be part of a 

larger group of companies), which may include, but cannot be principally, group 

financing; 

ii) the group of companies consists of corporations resident in, and engaged 

in an active business in at least five countries, and the business activities carried on 

20 
in each of the five countries generate at least 10 percent of the gross income of the 

group; 

iii) the business activities carried on in any one country other than the 

Contracting State of residence of the headquarters company generate less than 50 

percent of the gross income of the group; 

iv) no more than 25 percent of its gross income is derived from the other 

Contracting State; 

v) it has, and exercises, independent discretionary authority to carry out the 

functions referred to in clause i) of this subparagraph; 

vi) it is subject to the same income taxation rules in its country of residence 

as persons described in paragraph 3; and 

vii) the income derived in the other Contracting State either is derived in 

connection with, or is incidental to, the active business referred to in clause ii) of 

this subparagraph. 

 

If the gross income requirements for being considered a headquarters company described in 

clauses ii), iii), or iv) of this subparagraph are not fulfilled, they will be deemed to be fulfilled 

if the required ratios are met when averaging the gross income of the preceding four years; 

 

e) an entity organized under the laws of a Contracting State and established and 

maintained in that State exclusively for a religious, charitable, educational, scientific, or 

other similar purpose, even if the entity is generally exempt from tax in that State; 

f) a pension fund, provided that, in the case of a person described in subclause A) 

of clause ii) of subparagraph j) of paragraph 1 of Article 3 (General Definitions), more 

than 50 percent of the person’s beneficiaries, members or participants are individuals 

resident in either Contracting State; 

g) a person other than an individual, if: 

i) on at least half the days of the taxable year, persons who are residents of 

that Contracting State and that are entitled to the benefits of this Convention under 

subparagraph a), subparagraph b), clause i) of subparagraph c), or subparagraph e) 

or f) of this paragraph own, directly or indirectly, shares or other beneficial 

interests representing at least 50 percent of the aggregate voting power and value 

(and at least 50 percent of any disproportionate class of shares) of the person, 

provided that, in the case of indirect ownership, each intermediate owner is a 

resident of that Contracting State, and 

ii) less than 50 percent of the person's gross income for the taxable year, as 

determined in the person’s State of residence, is paid or accrued, directly or 

indirectly, to persons who are not residents of either Contracting State entitled to 

the benefits of this Convention under subparagraph a), subparagraph b), clause i) 

of subparagraph c), or subparagraph e) or f) of this paragraph in the form of 

payments that are deductible for purposes of the taxes covered by this Convention 

in the person’s State of residence (but not including arm’s length payments in the 

ordinary course of business for services or tangible property). 

3. a) A resident of a Contracting State will be entitled to the benefits of this Convention with respect to an item of income derived from the other State if the resident is engaged in 

the active conduct of a trade or business in the first-mentioned State (other than the business of 

making or managing investments for the resident’s own account, unless these activities are 

banking, insurance or securities activities carried on by a bank, insurance company or 

21 
registered securities dealer), and the income derived from the other Contracting State is derived 

in connection with, or is incidental to, that trade or business. 

b) If a resident of a Contracting State derives an item of income from a trade or 

business activity conducted by that resident in the other Contracting State, or derives an item of 

income arising in the other Contracting State from a related person, the conditions described in 

subparagraph a) shall be considered to be satisfied with respect to such item only if the trade or 

business activity carried on by the resident in the first-mentioned Contracting State is 

substantial in relation to the trade or business activity carried on by the resident or such person 

in the other Contracting State. Whether a trade or business activity is substantial for the 

purposes of this paragraph will be determined based on all the facts and circumstances. 

c) For purposes of applying this paragraph, activities conducted by persons 

connected to a person shall be deemed to be conducted by such person. A person shall be 

connected to another if one possesses at least 50 percent of the beneficial interest in the other 

(or, in the case of a company, at least 50 percent of the aggregate vote and value of the 

company’s shares or of the beneficial equity interest in the company) or another person 

possesses at least 50 percent of the beneficial interest (or, in the case of a company, at least 50 

percent of the aggregate vote and value of the company’s shares or of the beneficial equity 

interest in the company) in each person. In any case, a person shall be considered to be 

connected to another if, based on all the relevant facts and circumstances, one has control of the 

other or both are under the control of the same person or persons. 

4. If a resident of a Contracting State is neither a qualified person pursuant to the 

provisions of paragraph 2 nor entitled to benefits with respect to an item of income under 

paragraph 3 of this Article the competent authority of the other Contracting State may, 

nevertheless, grant the benefits of this Convention, or benefits with respect to a specific item of 

income, if it determines that the establishment, acquisition or maintenance of such person and 

the conduct of its operations did not have as one of its principal purposes the obtaining of 

benefits under this Convention. 

5. Notwithstanding the preceding provisions of this Article, where an enterprise of a 

Contracting State derives income from the other Contracting State, and that income is 

attributable to a permanent establishment which that enterprise has in a third jurisdiction, the 

tax benefits that would otherwise apply under the other provisions of the Convention will not 

apply to that income if the combined tax that is actually paid with respect to such income in the 

first-mentioned Contracting State and in the third jurisdiction is less than 60 percent of the tax 

that would have been payable in the first-mentioned State if the income were earned in that 

Contracting State by the enterprise and were not attributable to the permanent establishment in 

the third jurisdiction. Any dividends, interest or royalties to which the provisions of this 

paragraph apply shall be subject to tax in the other Contracting State at a rate that shall not 

exceed 15 percent of the gross amount thereof. Any other income to which the provisions of 

this paragraph apply shall be subject to tax under the provisions of the domestic law of the 

other Contracting State, notwithstanding any other provision of the Convention. The 

provisions of this paragraph shall not apply if: 

a) in the case of royalties, the royalties are received as compensation for the use of, 

or the right to use, intangible property produced or developed by the permanent 

establishment; or 

b) in the case of any other income, the income derived from the other Contracting 

State is derived in connection with, or is incidental to, the active conduct of a trade or 

business carried on by the permanent establishment in the third jurisdiction (other than 

the business of making, managing or simply holding investments for the enterprise’s 

own account, unless these activities are banking or securities activities carried on by a 

bank or registered securities dealer). 

6. For purposes of this Convention: 

22 
a) the term "recognized stock exchange" means: 

i) the NASDAQ System owned by the National Association of Securities 

Dealers, Inc. and any stock exchange registered with the U.S. Securities and 

Exchange Commission as a national securities exchange under the U.S. Securities 

Exchange Act of 1934; 

ii) the “Bolsa de Comercio”, “Bolsa Electrónica de Chile” and “Bolsa de 

Corredores”, and any stock exchange recognized by the “Superintendencia de 

Valores y Seguros” according to Law No. 18.045 (Ley de Mercado de Valores), 

and 

iii) any other stock exchanges agreed upon by the competent authorities of 

the Contracting States; 

b) the term “principal class of shares” means the ordinary or common shares of the 

company, provided that such class of shares represents the majority of the voting power 

and value of the company. If no single class of ordinary or common shares represents 

the majority of the aggregate voting power and value of the company, the “principal 

class of shares” are those classes that in the aggregate represent a majority of the 

aggregate voting power and value of the company; 

c) the term "disproportionate class of shares" means any class of shares of a 

company resident in one of the Contracting States that entitles the shareholder to 

disproportionately higher participation, through dividends, redemption payments or 

otherwise, in the earnings generated in the other State by particular assets or activities 

of the company; and 

d) a company's "primary place of management and control" will be in the 

Contracting State of which it is a resident only if executive officers and senior 

management employees exercise day-to-day responsibility for more of the strategic, 

financial and operational policy decision making for the company (including its direct 

and indirect subsidiaries) in that State than in any other state and the staff of such 

persons conduct more of the day-to-day activities necessary for preparing and making 

those decisions in that State than in any other state.

Article 25 

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to 

any taxation or any requirement connected therewith that is other or more burdensome than the 

taxation and connected requirements to which nationals of that other State in the same 

circumstances are or may be subjected. However, a citizen or national of a Contracting State 

who is not a resident of that Contracting State and a citizen or national of the other Contracting 

State who is not a resident of the first-mentioned State are not in the same circumstances with 

respect to the tax of that first-mentioned State. This paragraph shall, notwithstanding the 

provision of Article 1 (General Scope), apply to persons who are not residents of one or both of 

the Contracting States.

2. The taxation on a permanent establishment that an enterprise of a Contracting State has 

in the other Contracting State shall not be less favorably levied in that other State than the 

taxation levied on enterprises of that other State carrying on the same activities. This provision 

shall not be construed as obliging a Contracting State to grant to residents of the other 

Contracting State any personal allowances, reliefs, and reductions for taxation purposes on 

account of civil status or family responsibilities that it grants to its own residents.

23 
3. Except where the provisions of paragraph 1 of Article 9 (Associated Enterprises), 

paragraph 8 of Article 11 (Interest), or paragraph 6 of Article 12 (Royalties) apply, interest, 

royalties, and other disbursements paid by a resident of a Contracting State to a resident of the 

other Contracting State shall, for the purpose of determining the taxable profits of the firstmentioned resident, be deductible under the same conditions as if they had been paid to a 

resident of the first-mentioned State. Similarly, any debts of a resident of a Contracting State to 

a resident of the other Contracting State shall, for the purpose of determining the taxable capital 

of the first-mentioned resident, be deductible under the same conditions as if they had been 

contracted to a resident of the first-mentioned State.

4. Companies that are residents of a Contracting State the capital of which is wholly or 

partly owned or controlled, directly or indirectly, by one or more residents of the other 

Contracting State, shall not be subjected in the first-mentioned State to any taxation that is 

more burdensome than the taxation to which other similar companies of the first-mentioned 

State are or may be subjected.

5. Nothing in this Article shall be construed as preventing either Contracting State from 

imposing a tax as described either in paragraph 7 of Article 10 (Dividends) or paragraph 10 of 

Article 11 (Interest). 

6. The provisions of this Article shall, notwithstanding the provisions of Article 2 (Taxes 

Covered), apply to taxes of every kind and description imposed by a Contracting State or a 

political subdivision or local authority thereof, except that in the case of taxes not covered by 

this Convention, the provisions of this Article shall not apply to any taxation laws of a 

Contracting State that are in force on the date of signature of this Convention. 

Article 26 

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the Contracting States result 

or will result for him in taxation not in accordance with the provisions of this Convention, he 

may, irrespective of the remedies provided by the domestic law of those States, present its case 

to the competent authority of the Contracting State of which he is a resident or, if his case comes 

under paragraph 1 of Article 25 (Non-Discrimination), to that of the Contracting State of which 

he is a national. The case must be presented within 3 years from the first notification of the 

action resulting in taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavor, if the objection appears to it to be justified and 

if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement

with the competent authority of the other Contracting State, with a view to the avoidance of 

taxation which is not in accordance with the Convention. Any agreement reached shall be 

implemented notwithstanding any time limits or other procedural limitations in the domestic 

law of the Contracting States.

3. The competent authorities of the Contracting States shall endeavor to resolve by mutual 

agreement any difficulties or doubts arising as to the interpretation or application of the 

Convention. 

4. The competent authorities of the Contracting States may communicate with each other 

directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. 

24 
Article 27 

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as 

is foreseeably relevant for carrying out the provisions of this Convention or of the domestic 

laws of the Contracting States concerning taxes of every kind imposed by a Contracting State 

insofar as the taxation thereunder is not contrary to the Convention, including information 

relating to the assessment or collection of, the enforcement or prosecution in respect of, or the 

determination of appeals in relation to, the taxes covered by the Convention. The exchange of 

information is not restricted by Article 1 (General Scope) or Article 2 (Taxes Covered). 

2. Any information received by a Contracting State shall be treated as secret in the same 

manner as information obtained under the domestic laws of that State and shall be disclosed 

only to persons or authorities (including courts and administrative bodies) involved in the 

assessment, collection, or administration of, the enforcement or prosecution in respect of, or the 

determination of appeals in relation to, the taxes covered by the Convention or the oversight of 

the above. Such persons or authorities shall use the information only for such purposes. They 

may disclose the information in public court proceedings or in judicial decisions. 

3. In no case shall the provisions of the preceding paragraphs be construed so as to impose 

on a Contracting State the obligation: 

a) to carry out administrative measures at variance with the laws and administrative 

practice of that or of the other Contracting State; 

b) to supply information that is not obtainable under the laws or in the normal 

course of the administration of that or of the other Contracting State; 

c) to supply information that would disclose any trade, business, industrial, 

commercial, or professional secret or trade process, or information the disclosure of 

which would be contrary to public policy (ordre public). 

4. If information is requested by a Contracting State in accordance with this Article, the 

other Contracting State shall use its information gathering measures to obtain the requested 

information, even though that other State may not need such information for its own tax 

purposes. The obligation contained in the preceding sentence is subject to the limitations of 

paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to 

decline to supply information solely because it has no domestic interest in such information. 

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting 

State to decline to supply information solely because the information is held by a bank, other 

financial institution, nominee or person acting in an agency or a fiduciary capacity or because it 

relates to ownership interests in a person. 

6. If specifically requested by the competent authority of a Contracting State, the 

competent authority of the other Contracting State shall provide information under this Article 

in the form requested, such as depositions of witnesses and authenticated copies of unedited 

original documents (including books, papers, statements, records, accounts, and writings), to 

the same extent such information can be obtained in the form requested under the laws and 

administrative practices of that other State with respect to its own taxes. 

7. The competent authorities of the Contracting States shall consult with each other for the 

purpose of cooperating and advising in respect of any action to be taken in implementing this 

Article. 

25 
Article 28 

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

 Nothing in this Convention shall affect the fiscal privileges of members of diplomatic 

missions or consular posts under the general rules of international law or under the provisions 

of special agreements. 

VII. FINAL PROVISIONS 

Article 29 

ENTRY INTO FORCE

1. The Convention shall be subject to ratification in accordance with the applicable 

procedures in the United States and Chile. The Contracting States shall notify each other in 

writing, through diplomatic channels, when their respective applicable procedures have been 

satisfied. 

2. The Convention shall enter into force on the date of the later of the notifications referred 

to in paragraph 1. The provisions of this Convention shall have effect: 

a) in respect of taxes withheld at source, for amounts paid or credited on or after 

the first day of the second month following the date on which the Convention enters 

into force; 

b) in respect of other taxes, for taxable periods beginning on or after January 1 of 

the calendar year immediately following the date on which the Convention enters into 

force; and 

3. Notwithstanding paragraph 2, the provisions of Article 27 (Exchange of Information) 

shall have effect from the date of entry into force of this Convention, without regard to the 

taxable period to which the matter relates. 

Article 30

TERMINATION

1. This Convention shall remain in force until terminated by a Contracting State. Either 

Contracting State may terminate the Convention by giving to the other Contracting State a 

notice of termination in writing through diplomatic channels on or before the thirtieth day of June 

in any calendar year beginning after the year in which the Convention enters into force. 

2. In the event of such termination, the provisions of this Convention shall cease to have 

effect: 

a) in respect of taxes withheld at source, for amounts paid or credited on or after 

January 1 of the calendar year immediately following the date on which the notice 

described in paragraph 1 is given; and 

b) in respect of other taxes, for taxable periods beginning on or after January 1 of the 

calendar year immediately following the date on which the notice is given; and 

c) with respect to provisions not covered in subparagraph a) or b), on January 1 of 

the calendar year immediately following the date on which the notice is given. 

26 
 IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their 

respective Governments, have signed this Convention. 

 DONE at Washington in duplicate, in the English and Spanish languages, both texts 

being equally authentic, this fourth day of February, 2010. 

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA THE REPUBLIC OF CHILE 

27 
PROTOCOL TO THE CONVENTION BETWEEN 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND 

THE GOVERNMENT OF THE REPUBLIC OF CHILE 

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF 

FISCAL EVASION 

WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL 

 On signing the Convention between the Government of the United States of America 

and the Government of the Republic of Chile for the Avoidance of Double Taxation and the 

Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (the 

“Convention”), the two Governments have agreed to the following provisions. 

1. With reference to Article 1 (General Scope)

An item of income, profit or gain derived through an entity that is fiscally transparent under the 

laws of either Contracting State shall be considered to be derived by a resident of a Contracting 

State to the extent that the item is treated for purposes of the taxation law of such Contracting 

State as the income, profit or gain of a resident. 

2. With reference to Article 1 (General Scope)

The Convention shall not restrict in any manner any exclusion, exemption, deduction, credit or 

other allowance or benefit now or hereafter accorded: 

a) by the laws of either Contracting State; or 

b) by any other agreement to which the Contracting States are parties. 

3. With reference to Article 1 (General Scope)

Notwithstanding the provisions of subparagraph b) of paragraph 2 of this Protocol: 

a) for purposes of paragraph 3 of Article XXII (Consultation) of the General 

Agreement on Trade in Services, the Contracting States agree that any question arising 

as to the interpretation or application of this Convention and, in particular, whether a 

taxation measure is within the scope of this Convention, shall be determined exclusively 

in accordance with the provisions of Article 26 (Mutual Agreement Procedure) of this 

Convention; and 

b) the provisions of Article XVII of the General Agreement on Trade in Services 

shall not apply to a taxation measure unless the competent authorities agree that the 

measure is not within the scope of Article 25 (Non-discrimination) of this Convention. 

For the purposes of this paragraph, a "measure" is a law, regulation, rule, procedure, decision, 

administrative action, or any similar provision or action. 

4. With reference to Article 1 (General Scope)

Notwithstanding any provision of the Convention, a Contracting State may tax its residents (as 

determined under Article 4 (Residence)), and by reason of citizenship may tax its citizens, as if 

the Convention had not come into effect.

 

For this purpose, the term “citizen” shall include a former citizen or long-term resident, but 

only for a period of 10 years following the loss of such status. 

The provisions of this paragraph shall not affect: 

28 
a) the benefits conferred by a Contracting State under paragraph 2 of Article 9 

(Associated Enterprises), paragraphs 1 b) 3, 4, and 6 of Article 18 (Pensions, Social 

Security, Alimony and Child Support), and Articles 23 (Relief From Double Taxation), 

25 (Non-Discrimination), and 26 (Mutual Agreement Procedure); and 

b) the benefits conferred by a Contracting State under paragraphs 2 and 5 of Article 

18 (Pensions and Social Security), Articles 19 (Government Service), 20 (Students and 

Trainees), and 28 (Members of Diplomatic Missions and Consular Posts), upon 

individuals who are neither citizens of, nor have been admitted for permanent residence 

in, that State. 

5. With reference to paragraph 2 of Article 3 (General Definitions)

As regards the application of the Convention at any time by a Contracting State, the competent 

authorities may agree, pursuant to the provisions of Article 26 (Mutual Agreement Procedure), 

on an interpretation and arrive at a common meaning of a term not defined in the Convention. 

Any interpretation so agreed to shall be used with respect to the application of such term. 

6. With reference to paragraph 1 of Article 4 (Residence)

The term "resident of a Contracting State" includes: 

a) an organization that is established and maintained in that State exclusively for a 

religious, charitable, educational, scientific, or other similar purpose; and 

b) a pension fund established in that State, 

notwithstanding that all or part of its income or gains may be exempt from tax under the 

domestic law of that State. 

7. With reference to paragraph 1 of Article 4 (Residence)

Chile shall treat a United States citizen or an alien lawfully admitted for permanent residence (a 

"green card" holder) as a resident of the United States only if such individual has a substantial 

presence, permanent home, or habitual abode in the United States and if that individual is not a 

resident of a State other than Chile for the purposes of a double taxation convention between 

that State and Chile. 

8. With reference to Article 5 (Permanent Establishment)

A person will come within the scope of paragraph 6 only if that person is independent of the 

enterprise both legally and economically, and acts in the ordinary course of that person’s 

business when acting on behalf of the enterprise. 

9. With reference to paragraph 5 of Article 6 (Income from Real Property (Immovable 

Property))

A resident of a Contracting State who is liable to tax in the other Contracting State on income 

from real property situated in the other Contracting State who is not otherwise allowed to 

compute the tax on such income on a net basis shall be allowed to elect for any taxable year to 

compute the tax on such income on a net basis as if such income were business profits 

attributable to a permanent establishment in such other State. Any such election shall be 

binding for the taxable year of the election and all subsequent taxable years unless the 

competent authority of the Contracting State in which the property is situated agrees to 

terminate the election. 

29 
10. With reference to paragraph 2 of Article 7 (Business Profits)

Business profits to be attributed to the permanent establishment shall only include the profits 

derived from the assets or activities of the permanent establishment. 

11. With reference to Article 8 (International Transport)

An inland transport within either Contracting State shall be treated as the operation of ships or 

aircraft in international traffic if undertaken as part of a transport that includes transport by 

ships or aircraft in international traffic. 

12. With reference to Article 10 (Dividends)

a) In the case of Chile, because of its integrated, two-level income tax on business profits 

(First Category Tax and Additional Tax), the provisions of paragraphs 2, 3, 7, and 8 of Article 

10 (Dividends) shall not limit the application of the Additional Tax provided that under the 

domestic law of Chile the First Category Tax is fully creditable in computing the amount of 

Additional Tax to be paid. 

b) Notwithstanding subparagraph a): 

 i) if at any time under the domestic law of Chile the First Category Tax ceases to 

be fully creditable in computing the amount of Additional Tax to be paid, subparagraph a) shall 

not apply and the amount of Additional Tax imposed by Chile shall be limited by the 

provisions of paragraphs 2, 3, 7, and 8 of Article 10; and

 ii) if the rate of Additional Tax imposed under the domestic law of Chile exceeds 

35 percent, the provisions of Article 10 shall apply with respect to both the United States and 

Chile, but the tax charged under subparagraphs a) and b) of paragraph 2 of Article 10 shall not 

exceed 15 percent of the gross amount of dividends paid by a resident of a Contracting State 

and beneficially owned by a resident of the other Contracting State. The Contracting States 

also shall consult to reassess the balance of benefits of this Convention with a view to 

concluding a protocol to incorporate terms limiting the right of the source country to tax 

dividends under Article 10. 

13. With reference to Article 10 (Dividends) 

The provisions of Article 10 shall not apply in the case of distributions or dividends paid by an 

enterprise when the investment is subject to a foreign investment contract under the Foreign 

Investment Statute (DL 600), as it may be amended from time to time without changing the 

general principles thereof. 

14. With reference to paragraph 2 of Article 10 (Dividends) 

Subparagraph a) of paragraph 2 of Article 10 shall not apply in the case of dividends paid by a 

Regulated Investment Company (RIC) or a Real Estate Investment Trust (REIT). In the case of 

dividends paid by a RIC, subparagraph b) of paragraph 2 shall apply. In the case of dividends 

paid by a REIT, subparagraph b) of paragraph 2 shall only apply if: 

a) the beneficial owner of the dividends is an individual holding an interest of not 

more than 10 percent of the REIT; or 

b) the dividends are paid with respect to a class of stock that is publicly traded and 

the beneficial owner of the dividends is a person holding an interest of not more than 5 

percent of any class of the REIT’s stock; or 

c) the beneficial owner of the dividends is a person holding an interest of not more 

than 10 percent of the REIT and the REIT is diversified. 

30 
For purposes of this paragraph, a REIT shall be “diversified” if the value of no single interest in 

real property exceeds 10 percent of its total interests in real property. For the purposes of this 

rule, foreclosure property shall not be considered an interest in real property. Where a REIT 

holds an interest in a partnership, it shall be treated as owning directly a proportion of the 

partnership’s interests in real property corresponding to its interest in the partnership. 

15. With reference to Paragraph 3 of Article 12 (Royalties)

In order to establish if payments as consideration for computer software should be classified as 

royalty payments under Article 12, paragraphs of the Commentary to Article 12 of the OECD 

Model Tax Convention on Income and on Capital of 2008 addressing specifically computer 

software (paragraphs 12 to 14.4 and paragraphs 17 to 17.4) shall apply. 

16. With reference to Article 13 (Capital Gains)

The rate of Additional Tax imposed by Chile under the provisions of paragraph 7 of Article 13 

shall not exceed 35 percent. In addition, if under the domestic law of Chile the First Category 

Tax exceeds 30 percent, paragraphs 5 and 7 of Article 13 shall not apply. 

17. With reference to Article 13 (Capital Gains)

For purposes of subparagraph b) of paragraph 6 of Article 13, the terms “mutual fund” and 

“institutional investor” shall not include an investor of a Contracting State which directly or 

indirectly owns 10 percent or more of the shares or other rights representing the capital or of 

the profits in a company of the other Contracting State. 

18. With reference to paragraph 3 of Article 18 (Pensions, Social Security, Alimony and 

Child Support)

In the case of Chile, the social security system referred to in paragraph 3 of Article 18 is any 

pension scheme or fund administered by the Instituto de Prevision Social (formerly Instituto de 

Normalización Previsional) and the social security system created by Decree Law 3500 (DL 

3500). In the case of the United States, the phrase "similar legislation" is intended to refer to 

tier 1 Railroad Retirement benefits. 

19. With reference to paragraph 5 of Article 18 (Pensions, Social Security, Alimony and 

Child Support)

For purposes of paragraph 5 of Article 18, pension plans in each Contracting State that 

generally correspond to pension plans that are recognized for tax purposes by the other 

Contracting State shall include the following and any identical or substantially similar plan that 

is established pursuant to legislation introduced after the date of signature of the Protocol: 

a) In the case of Chile, any pension scheme or fund administered by the Instituto de 

Prevision Social (formerly Instituto de Normalización Previsional) and the social 

security system created by Decree Law 3500 (DL 3500); and 

b) In the case of the United States, qualified plans under section 401(a) of the 

Internal Revenue Code (including section 401(k) arrangements), individual retirement 

plans (including individual retirement plans that are part of a simplified employee 

pension plan that satisfies section 408(k), individual retirement accounts, and section 

408(p) simple retirement accounts), section 403(a) qualified annuity plans, section 

403(b) plans, section 457(g) trusts providing benefits under section 457(b) plans, and 

the Thrift Savings Fund (section 7701(j)). 

31 
32 

20. With reference to Article 27 (Exchange of Information)

Notwithstanding paragraph 3 of Article 29 (Entry Into Force), information covered by 

paragraph 5 of Article 27, to the extent that such information is covered by Article 1 of DFL 

No. 707 and Article 154 of DFL No. 3 of Chile, shall be available with respect to bank 

information corresponding to taxable periods or events commencing as of January 1, 2010 and 

thereafter. Other bank information like signature cards and other account opening documents 

may be exchanged without regard to the time they were created.

21. General Provision

With respect to pooled investment accounts or funds (as for instance the existing Foreign 

Capital Investment Fund, Law No. 18.657, as it may be amended from time to time without 

changing the general principles thereof) that are subject to a remittance tax and are required to 

be administered by a resident of Chile, the provisions of this Convention shall not be 

interpreted to restrict imposition by Chile of the tax on remittances (currently at 10 percent) 

from such accounts or funds in respect of the investment in assets situated in Chile. 

22. General Provision

The Contracting States shall consult regarding the terms, operation and application of the 

Convention to ensure that it continues to serve the purposes of avoiding double taxation and 

preventing fiscal evasion and shall, where they consider it appropriate, conclude protocols to 

amend the Convention. Either Contracting State may at any time request that consultations be 

conducted in an expeditious manner on matters relating to the terms, operation and application 

of the Convention which it considers require urgent resolution. The Contracting States shall in 

any event consult to assess the terms, operation and application of the Convention within five 

years of the date of entry-into-force of the Convention. If Chile concludes an income tax treaty 

with another state that imposes a limit on rates of withholding on payments of interest and 

royalties lower than the limits imposed under paragraph 2 of Article 11 (Interest) and paragraph 

2 of Article 12 (Royalties) or that contains terms that further limit the right of the source 

country to tax capital gains under Article 13 (Capital Gains), the Contracting States shall, at the 

request of the United States, consult to reassess the balance of benefits of this Convention with 

a view to concluding a protocol to incorporate such lower rates or limiting terms into this 

Convention. 

This Protocol shall enter into force on the date of entry into force of the Convention and shall 

form an integral part of the Convention. 

 

 IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their 

respective Governments, have signed this Protocol. 

 DONE at Washington in duplicate, in the English and Spanish languages, both texts 

being equally authentic, this fourth day of February, 2010. 

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA THE REPUBLIC OF CHILE