Chile and the Netherlands sign double taxation agreement
The Agreement is the newest addition to Chile's extensive network of tax agreements in force with 33 countries. Its objective is to promote greater economic cooperation between Chile and the Netherlands by eliminating tax barriers and promoting investment between the two countries through measures aimed at avoiding international double taxation. This Agreement is in addition to those recently signed with India and the United Arab Emirates.
Treasury Minister Ignacio Briones and the Ambassador of the Netherlands to Chile, H.E. Harman C. Idema, signed a new agreement on Monday to eliminate double taxation and to prevent tax evasion and avoidance between the two countries.
The Agreement is the newest addition to Chile's extensive network of tax agreements in force with 33 countries. Its objective is to promote greater economic cooperation between Chile and the Netherlands by eliminating tax barriers and promoting investment between the two countries through measures aimed at avoiding international double taxation. This Agreement is in addition to those recently signed with India and the United Arab Emirates.
Minister Briones emphasized that "this is an important step towards boosting cooperation between Chile and the Netherlands, not only by further developing our tax relationship but also by paving the way to promote investments between both countries.”
The Agreement will increase direct investment from the Netherlands to Chile, increase the export of services and facilitate technological transfer. It will also promote the exchange of tax information and reinforce the integrity of the Chilean tax system, by providing a better legal framework through which the tax authorities in both countries can prevent international tax evasion and resolve disputes in tax matters.
Currently, the Netherlands ranks as Chile’s 4th most important trading partner in terms of foreign direct investment. At the end of 2019, the Netherlands’ investment in Chile totaled US$20.5 billion, representing 7.5% of total foreign investment.
Chile's investment in the Netherlands totaled US$1.8 billion at the end of 2019 and represented 1.33% of total Chilean investment abroad. This investment is mainly focused on the industrial sector.
Also participating in the signing ceremony, that took place virtually and in person, were the Netherlands’ State Secretary for Finance - Tax Affairs and Tax Administration, H.E. Dr. Hans Vijlbrief, the Director of Chile’s Internal Revenue Service (Servicio de Impuestos Internos, SII), Fernando Barraza, the Head of Tax Policy at the Treasury Ministry, Manuel Alcalde, and the technical teams that led the negotiations between the two countries.