The governments of Argentina and Chile announced this Monday (17.10.2016) the entry into force of an agreement to eliminate the double taxation y prevent tax evasion. The agreement will come into effect on January 1, 2017, after obtaining ratification from the congresses of both countries, announced the Chilean Minister of Finance, Rodrigo Valdés, and his Argentine counterpart for Finance and Treasury, Alfonso Prat-Gay.
"We are announcing the entry into force of the double taxation and information exchange treaty, which will make the taxation process more efficient and effective. integration of our companies and tax records"Prat-Gay said. The agreement seeks to eliminate international double taxation to which taxpayers who carry out transnational activities are subject, reducing fiscal barriers to the flow of capital and services.
Chilean Finance Minister Rodrigo Valdés, for his part, said that the agreement will give stability y certainty to taxpayers regarding their total tax burden and the interpretation and application of the legislation that affects them. "If someone does business on the other side, they will be able to deduct the taxes they pay on one side from those they pay at home, and that is very important to make Argentine investments in Chile more profitable and vice versa. This agreement has OECD standards“,” Valdes said.
More bilateral plans
The agreement, which was signed on May 15, 2015 in Santiago and applies to residents of one or both countries, seeks boosting services exports and facilitate the technology transferIt also establishes mechanisms for Preventing tax evasion and avoidance through cooperation between the tax administrations of both countries and proceed to the exchange of information between them.
On the other hand, several ministers from both countries participated in the presentation of the project to design and build the Agua Negra tunnel (separate note), a 13,9-kilometer-long corridor that will link the Chilean region of Coquimbo with the Argentine province of San Juan. The project involves the construction of two parallel tunnels that will cross the Andes mountain range and will cost around 1.400 billion dollars, which will be financed by the Inter-American Development Bank (IDB).
Source: Telam, Efe
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
