Japan-Chile tax treaty enters into force

A tax treaty between Japan and Chile signed January 21, 2016, has entered into force, the Japanese government has announced,

The convention entered into force December 28, 2016, and will have effect in Japan with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after January 1, 2017; and with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after January 1, 2017.

In Chile the treaty will have effect with respect to taxes on income obtained and amounts paid, credited to an account, put at the disposal or accounted as an expense, on or after January 1, 2017.

The provisions concerning the exchange of information have effect from December 28, 2016, without regard to the date on which the taxes are withheld at source or the taxable year to which the matter relates.

The treaty is the first tax treaty between the nations. It lowers withholding tax on dividends, interest, and royalties; contains arbitration provisions; and includes antiabuse provisions.


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