Chile and Switzerland sign agreement to prevent double taxation

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SANTIAGO. -  The Chilean minister of Finance, María Olivia Recart and vice minister of Switzerland, Michawl Ambuhl, signed an agreement this morning between Chile and Switzerland to prevent double taxation on income and investments for citizens of both countries.  The Swiss ambassador to Chile, Andrés Regli, and the head of the Internal Tax Service, Richard Escobar, also participated in the ceremony.

The agreement brings an end to a long negotiation process aimed at fusing tax criteria for people who exchange goods, offer services or invest in the other country in order to prevent instances of double taxation in these situations.

The pact, which will become valid once both countries are notified that the required internal procedures have been fulfilled, calls for a 5% tax reduction on royalties paid abroad that correspond to the use or right to use industrial, commercial or scientific equipment and establishes a 10% reduction on all other cases.