Key Benefits:
MOTION FOR RESOLUTION No. 24 /X
Bearing in mind that this Convention will fundamentally allow to avoid the duo
taxation of the different categories of income earned by residents in
any of the Contracting States;
Considering that this Convention establishes rules that delimit the competence
of each State to tax the income, particularly the derivatives of goods
real estate, corporate activities, dividends, interest, royalties, income from the
dependent work and pensions;
Given that its duration will contribute to the creation of a more fiscal framework
stable and transparent for investors of both states and in that measure influence
in a positive way the development of capital flows;
Thus:
Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the
Assembly of the Republic the following motion for a resolution:
To approve the Convention between the Portuguese Republic and the Republic of Chile to Prevent the
Double Taxation and Preventing Tax Evasion in Tax Matters on the
Income, signed in Santiago, to July 7, 2005, the text of which in the versions
authenticated in the Portuguese, Spanish and English languages, it publishes in attachment.
Seen and approved in Council of Ministers of August 12, 2005.
The Prime Minister
The Minister of the Presidency
The Minister of Parliamentary Affairs
CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF THE
CHILE TO AVOID DOUBLE TAXATION AND PREVENT EVASION
TAX ON INCOME TAX
The Portuguese Republic and the Republic of Chile, wishing to conclude a Convention
to avoid double taxation and to prevent tax evasion in tax on the
income, agreed in the following provisions:
CHAPTER I
SCOPE OF THE CONVENTION
Article 1º
PEOPLE TARGETED
This Convention applies to the resident persons of one or both of the
Contracting States.
Article 2º
TAX VISED
1. This Convention applies to taxes on income required by
each of the Contracting States, their political or administrative subdivisions and their
local authorities, whatever the system used for their collection.
2. Are considered income taxes all tax incidents on
the total income or on elements of income, included the taxes on the
gains derived from the disposal of the securities or real estate, the taxes on the
overall amount of salaries or salaries paid by the companies, as well as the
taxes on the most-valuable ones.
3. The current taxes to which this Convention applies are, inter alia:
a) In Portugal:
(i) The Income Tax on Singular Persons (IRS);
(ii) The Income Tax of Collective Persons (IRC); and
(iii) To Derrama;
(hereinafter referred to by the designation of "Portuguese tax"); and
b) In Chile, the taxes required under the Tax Act on the
Yield, "Ley on Impuesto a la Renta" (hereinafter referred to by
designation of "Chilean tax").
4. The Convention shall also be applicable to taxes of an identical nature or
substantially similar that come into force later than the date of the signing of the
Convention and to come to add to the current or to replace them. The authorities
competent of the Contracting States shall communicate one to the other the modifications
significant introduced in the respective tax legislations.
CHAPTER II
DEFINITIONS
Article 3º
GENERAL DEFINITIONS
1. For the purposes of this Convention, unless the context requires interpretation
different:
a) the term "Portugal" means the territory of the Portuguese Republic located in the
European continent and the archipelagos of the Azores and Madeira, including the
respective territorial sea and the inland waters and well so the sea bed, the
subsoil and any other areas where the Portuguese Republic exercises
superb rights or jurisdiction, in accordance with the right
international and the laws of the Portuguese Republic;
b) the term "Chile" means the territory of the Republic of Chile, including the
respective territorial sea and the inland waters and well so the sea bed, the
subsoil and any other areas where the Republic of Chile exercises rights
superyans or jurisdiction, in accordance with international law and
laws of the Republic of Chile;
c) the expressions "a Contracting State" and "the other Contracting State"
mean Portugal or Chile, as a result of the context;
d) the term "person" comprises a natural person, a society and
any other grouping of persons;
e) the term "society" means any legal person or any
entity that is treated as a legal person for tax purposes;
f) the expressions "company of a Contracting State" and " company of the other
State Contractor " means, respectively, an explored company
by a resident of a Contracting State and a company operated by
a resident of the other Contracting State;
g) the expression "international traffic" means any transport by ship
or aircraft operated by a company of a Contracting State,
except if the said transport is carried out only between places located
in the other Contracting State;
h) the expression "competent authority" means:
(i) in Portugal, the Minister of Finance, the Director-General of Taxes
or its authorized representatives; and
(ii) in Chile, the Minister of Finance or his authorised representative;
i) the term "national" means:
(i) any natural person who has the nationality of a State
Contractor;
(ii) any legal person or association constituted of harmony with
the legislation in force in a Contracting State.
2. With regard to the application of the Convention at a given point in time by a State
Contractor, any expression therein not defined should have, unless the context
require different interpretation, the meaning assigned to it at that time by the
legislation of that State that regulates the taxes to which the Convention applies,
prevailing the interpretation resulting from tax legislation on what it decorates from another
legislation of this State.
Article 4º
RESIDENT
1. For the purposes of this Convention, the expression " resident of a State
Contractor " means any person who, by virtue of the legislation of that State, is
there subject to tax due to your domicile, your residence, the place of direction, place
of constitution or any other criterion of a similar nature, and shall also apply to
that State and to its political or administrative subdivisions or local authorities.
However, this expression does not include any person who is subject to tax in that
State only relative to the income of sources located in that state.
2. When, by virtue of the provisions of paragraph 1, a natural person is a resident of
both the Contracting States, the situation shall be resolved as follows:
a) will be considered resident only of the State in which it has a dwelling
permanent at your disposal. If you have a permanent dwelling to your
provision in both states, will be considered resident only of the
State with which they are narrower their personal relationships and
economic (centre of vital interests);
b) if the state in which it has the centre of vital interests cannot be
determined or if it does not have permanent housing at its disposal in
none of the States, shall be considered resident only of the State in which
remain customarily;
c) if it remains customary in both states or if it does not remain
usually in none of them, will be considered resident only of the
State of which it is national;
d) if it is national of both States or is not national of any of them,
the competent authorities of the Contracting States shall solve the case of
common agreement.
3. When, by virtue of the provisions of paragraph 1, a person, who is not a person
singular, be resident of both the Contracting States, the competent authorities
of the Contracting States shall seek to resolve the matter of common accord, having in
consideration of the site of the respective effective direction, of the main office or head office, of the
constitution or any other relevant factors. In the absence of such an agreement, the person
in cause shall not be able to benefit from the provisions of this Convention, ressaving
that this person may apply for the benefits provided for under Articles 23º (No.
discrimination) and 24º (Friendly Procedure).
Article 5º
STABLE ESTABLISHMENT
1. For the purposes of this Convention, the expression "stable establishment"
means a fixed installation through which the company exercises all or part of its
activity.
2. The expression "stable establishment" comprises, inter alia:
a) a place of direction;
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 connessed with the prospection or exploitation of natural resources.
3. The expression "stable establishment" comprises also:
a) a construction site or a construction or installation project,
as well as related supervisory activities, but only if your
duration exceeds 6 months;
b) the provision of services, including consultancy services, by a company,
through its employees or other personnel hired by the company
for the purpose, when such activities are carried out in the country during a
period or periods that sum up, in total, more than 183 days in any
period of 12 months.
For the purposes of calculating the deadlines set out in this paragraph, the activities carried out by
a company associated with another company, pursuant to the provisions of Article 9º
(Associated Companies) of this Convention, will be added to the period during the
what activities are carried out by the company, provided that the activities of the company
associated are identical or substantially similar.
4. Notwithstanding the previous provisions of this Article, the expression
"stable establishment" does not understand:
a) the facilities used solely to store, expose or deliver goods
or goods belonging to the company;
b) a deposit of goods or goods belonging to the company, maintained
solely to store them, expose or deliver;
c) a deposit of goods or goods belonging to the company, maintained
solely to be transformed by another company;
d) a fixed installation maintained solely to purchase goods or goods
or gather information for the company;
e) a fixed installation maintained solely to make advertising, provide
information or conduct scientific research for the company, as well as
any similar activity, provided that such activities are of character
preparative or auxiliary.
5. Notwithstanding the provisions of paragraphs 1 and 2, when a person-who is not a
independent agent, to which paragraph 7 applies to account of a company and
detain and habitually exercise in a Contracting State powers to conclude contracts
on behalf of the company, it is considered that this company possesses a stable establishment
in that State, in respect of any activities that such person shall exercise for
company, unless the activities of that person are limited to those referred to in paragraph 4, the
which, if exerted through a fixed installation, would not allow to consider such
fixed installation as a stable establishment in accordance with the provisions of that
number.
6. Notwithstanding the foregoing provisions of this Article, it shall be deemed to be
insurance company resident of a Contracting State, with the exception of reinsurance,
has a stable establishment in the other Contracting State whenever, by
intermediate to a representative who is not considered as independent agent in the
terms of paragraph 7, receive awards in the territory of that other State or hold risks situated
in that territory.
7. It does not consider that a company has a stable establishment in a State
Contractor for the simple fact of carrying out its business in that State through
of a broker, of a general commissioner or of any other independent agent,
provided that such persons act in the normal scope of their activity and that the conditions
accepted or imposed in their business or financial relations with such companies not
differ from those that would normally be established by independent agents.
8. The fact that a resident corporation of a Contracting State controls or is
controlled by a resident company of the other Contracting State Contracting or which exercises its
activity in that other state (whether it is through a stable establishment, or
other mode) is not, by itself, quite a lot to do from any of these societies
stable establishment of the other.
CHAPTER III
TAXATION OF INCOME
Article 6º
INCOME FROM REAL ESTATE
1. The income that a resident of a Contracting State auffers from goods
real estate (included the incomes of agricultural or forestry holdings) situated
in the other Contracting State may be taxed in that other State.
2. For the purposes of this Convention, the expression "real estate" shall have the
meaning that it is assigned by the right of the Contracting State in which such goods
are situated. The expression always comprises the accessories, the cattle and the
equipment of agricultural and forestry holdings, the rights to which the
provisions of private law relating to the ownership of immovable property, the usufruct of
real estate and the rights to variable or fixed retribution by the holding or by the
concession of the exploitation of mineral deposits, sources and other natural resources. The
ships and aircraft are not considered real estate.
3. The provisions of paragraph 1 shall apply to the income derived from direct use, of the
leasing or any other form of use of the real estate.
4. The provisions of paragraphs 1 and 3 shall also apply to income from those
real estate owned by a company and the income of the real estate used
for the exercise of independent occupations.
5. The above provisions also apply to the income of movable property
associated with immovable property and the provision of services intended for their maintenance or
health.
Article 7º
PROFITS OF COMPANIES
1. The profits of a company from a Contracting State can only be taxed
in that State, unless the company exercises its activity in the other State
Contractor by means of a stable establishment there. If the company exercises or
has exercised its activity in this way, its profits can be taxed on the other
State, but solely to the extent that they are attributable to such establishment
stable.
2. With the proviso of the provisions of paragraph 3, when a company of a Contracting State
engage in business in the other Contracting State by means of an establishment
stable therein, shall be charged, in each Contracting State, to that establishment
stable the profits this would get if it were a distinct and separate company that
to exercise the same activities or similar activities, under the same conditions or in
similar conditions, and treated with absolute independence with the company that it is
stable establishment and with any other person.
3. In determining the profit of a stable establishment it is permitted to deduct the
expenses that have been made to carry out the purposes pursued by that
stable establishment, including steering expenses and general expenses of
administration, carried out with the said end, or in the State in which that
stable establishment is situated want out of it.
4. If it is usual in a Contracting State to determine the profits attributable to a
stable establishment on the basis of a breakdown of the total profits of the company between the
its various parties, the provisions of paragraph 2 shall not prevent such Contracting State from
determine taxable profits in accordance with the usual allocation; the method of
apportionment adopted shall, however, lead to a result as with the
principles set out in this Article.
5. No profit shall be charged to a stable establishment by the fact of the simple
purchase of goods or goods, by that stable establishment, for the company.
6. For the purposes of the previous figures, the profits to be charged to the establishment
stable will be determined in each year, according to the same method, unless
there are valid and sufficient grounds to proceed differently.
7. When the profits understand elements of the income covered
separately by other Articles of this Convention, the respective provisions
will not be affected by those of this Article.
Article 8º
MARITIME AND AIR NAVIGATION
1. The profits of a company from a Contracting State from the holding
of ships or aircraft in international traffic can only be taxed in that state.
2. The provisions of paragraph 1 shall apply equally to profits from participation
in a pool , on an exploration in common or in an international operating body.
3. When companies from different countries have agreed to exercise a
air transport activity in the form of a consortium or similar association, the
provisions of paragraph 1 shall apply to the part of the profits of the consortium or the association
corresponding to the participation held in that consortium or in that association by a
resident society of a Contracting State.
Article 9º
ASSOCIATED COMPANIES
1. When
a) a company of a Contracting State participates, directly or indirectly,
in the direction, control or capital of a company of the other State
Contractor; or
b) the same persons participate, directly or indirectly, in the direction, in the
control or in the capital of a company of a Contracting State and of a
company of the other Contracting State,
and in both cases, the two companies, in their commercial or financial relations,
are connected by accepted or imposed conditions that differ from those that would be
established between independent companies, the profits that, if they did not exist these
conditions, would have been obtained by one of the companies, but they were not because of those
conditions, may be included in the profits of that company and, consequently,
taxed.
2. When a Contracting State includes in the profits of a company of that State-
and tribute in that compliance-the profits by which a company of the other State
Contractor was taxed in that other state, and the profits included in this way
constitute profits that would have been obtained by the company of the first State
mentioned, if the conditions agreed between the two companies had been the
conditions that would have been established between independent companies, that other
State, if it agrees that the adjustment made by the first mentioned State if
justifies both in terms of principle and in terms of the respective amount,
will make the appropriate adjustment of the amount of tax levied there on the profits
referred to. In the determination of this adjustment will be taken into account the other
provisions of this Convention and the competent authorities of States
Contractors consult each other, if necessary.
Article 10º
DIVIDENDS
1. The dividends paid by a resident corporation of a Contracting State to a
resident of the other Contracting State may be taxed in that other State.
2. These dividends may also be taxed in the Contracting State of which it is
resident the society that pays the dividends and in accordance with the legislation of that
State. However, if the beneficial owner of the dividends is a resident of the other
State Contracting, the tax thus established shall not be able to exceed:
a) 10% of the gross amount of dividends if the beneficial owner is a
society that detains, directly, at least 25% of the capital of the
society that pays the dividends; and
b) 15% of the gross amount of dividends, in the remaining cases.
The competent authorities of the Contracting States shall establish, by common accord,
the way to apply these limits.
This number does not affect the taxation of the society for the profits of which the dividends
are paid. In the case of Chile, this taxation includes the application of the additional tax.
3. The term "dividends", used in this Article, means the yields
arising from shares or other rights, with the exception of credits, which allow
participate in profits, as well as the income from other rights that are subject
to the same tax regime of the income of shares by the legislation of the State of which it is
resident the society that distributes them.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends,
resident of a Contracting State, engage in activity in the other Contracting State of
who is a resident of the society that pays the dividends, by means of an establishment
stable there situated, or exercise in that other state an independent profession, by means of
of a fixed installation there situated, and the participation for which the dividends
are paid are actually connected to such a stable establishment or to that
fixed installation. In such a case, the provisions of Article 7º (Profits of the
companies) or Article 14º (Independent Professions), as the case may be.
5. When a resident company of a Contracting State obtains profits or
income from the other Contracting State, that other State shall not be able to
demand no tax on dividends paid by the company, except to the extent
in which such dividends are paid to a resident of that other state or to the extent
where the participation in respect of which dividends are paid is actually
connected to a stable establishment or to a fixed installation located in that other
State, nor subject the undistributed profits of the society to a tax on the
undistributed profits, even if dividends paid or undistributed profits
consisted, in whole or in part, in profits or income from that other
State.
Article 11º
INTEREST
1. Interest accruing from a Contracting State and paid to one resident of the other
State Contracting may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State of
which originate and in accordance with the legislation of that State, but if the beneficial owner
of the interest for a resident of the other Contracting State, the tax so established
may not exceed:
a) 5% of the gross amount of interest arising from bonds or securities
regular and substantially traded in a securities market
recognized;
b) 10% of the gross amount of interest from:
(i) of loans granted by banks or insurance companies;
(ii) of the sale on credit, paid by the acquirer of machinery and of
equipment to an effective beneficiary who is the seller of the
machinery and equipment;
c) 15% of the gross interest amount, in the remaining cases.
The competent authorities of the Contracting States shall establish, by common accord,
the way to apply these limits.
3. The term "interest", used in this Article, means the income of credits
of any nature, with or without a mortgage guarantee, and the yields of the debt
public and other credit securities, as well as the income that is subject to the
same tax regime of loan yields under state law
of which they derive the yields. The expression "interest" does not understand income
covered by the provisions of Article 10º (Dividends).
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest,
resident of a Contracting State, engage in activity in the other Contracting State of
which originate the interest, by means of a stable establishment there, or exercise
in that other state an independent profession, by means of a fixed installation there
situated, and the credit for which interest is paid is actually
linked to that stable establishment or to that fixed installation. In that case, they are
applicable the provisions of Article 7º (Profits of companies) or Article 14º
(Independent Occupations), as the case may be.
5. Interest shall be deemed to arise from a Contracting State when the debtor
be a resident of that state. However, when the debtor of interest, whether or not
resident of a Contracting State, have in a Contracting State an establishment
stable or a fixed installation in relation to which there has been contracted the obligation
by which interest is paid and such a stable establishment or such fixed installation
support the payment of these interest, such interest is considered from the State
in which the stable establishment or the fixed installation are situated.
6. When, due to existing special relationships between the debtor and the beneficiary
effective or between both and any other person, the amount of interest exceeds, by
any reason, the amount that would be agreed between the debtor and the beneficial owner
in the absence of such relations, the provisions of this Article shall apply only to
this last amount. In such a case, the surplus portion may continue to be taxed from
agreement with the legislation of each Contracting State, taking into account the other
provisions of this Convention.
Article 12º
ROYALTIES
1. The royalties coming from a Contracting State and paid to a resident of the
another Contracting State may be taxed in that other State.
2. However, these royalties can also be taxed in the State
The contractor to which they originate and in accordance with the legislation of that State, but if the
beneficial owner of the royalties is resident of the other Contracting State, the tax
so established will not be able to exceed:
a) 5% of the gross amount of the royalties relating to the use or the granting of the
use of any industrial, commercial or scientific equipment;
b) 10% of the gross amount of the royalties , in the remaining cases.
The competent authorities of the Contracting States shall establish, by common accord,
the way to apply these limits.
3. The term "royalties", used in this Article, means the retributions of
any nature received for remuneration for the use or the granting of the use
of an author's right on a literary, artistic or scientific piece of work, including the
cinematographic films, as well as films, recordings or any other means of
image or sound reproduction, of a patent, of a manufacturing mark or of
trade, a drawing or a model, a plan, a formula or a
secret process or other intangible goods, as well as by use or by the granting
of the use of an industrial, commercial or scientific equipment, or by information
relating to an experience gained in the industrial, commercial or scientific sector.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties ,
resident of a Contracting State, engage in activity in the other Contracting State of
which originate the royalties , by means of a stable establishment located there, or exercise
in that other state an independent profession, by means of a fixed installation there
situated, and the right or well relatively to which the royalties are paid are
actually connected to that stable establishment or to that fixed installation. In this
case, the provisions of Article 7º (Profits of companies) or Article 14º are applicable
(Independent Occupations), as the case may be.
5. The royalties consider themselves coming from a Contracting State when the
debtor be a resident of that state. However, when the debtor of the royalties , be
or non-resident of a Contracting State, have in a Contracting State a
stable establishment or a fixed installation in relation to which there has been
contraption the obligation by which the royalties are paid, and such a stable establishment or
this fixed installation supports the payment of these royalties , such royalties are
considered from the State in which the establishment is stable or the installation
fixed are situated.
6. When, due to existing special relationships between the debtor and the beneficiary
effective or between both and any other person, the amount of royalties , having in
account for the use, the right or the information by which they are paid, exceeds the amount that
would be agreed between the debtor and the beneficial owner, in the absence of such relationships, the
provisions of this Article shall apply only to the latter amount. In this
case, the surplus part may continue to be taxed in accordance with the legislation of
each Contracting State, taking into account the other provisions of this Convention.
Article 13º
MAIS-VALIAS
1. The gains that a resident of a Contracting State auffers from the disposal of goods
real estate situated in the other Contracting State may be taxed in that other
State.
2. The gains from the disposal of the securities that are part of the
active establishment of a stable establishment that a company of a Contracting State has
in the other Contracting State or of transferable securities to a fixed installation of which
a resident of a Contracting State possesses in the other Contracting State for the
exercise of an independent profession, including the gains from the divestance
of this stable establishment (isolated or with the company's ensemble) or that
fixed installation, can be taxed in that other state.
3. The gains from the disposal of ships or aircraft used in traffic
international, or of securities allocated to the operation of such vessels or aircraft,
may only be taxed in the Contracting State that the alienant is resident.
4. The gains that a resident of a Contracting State obtains from the divestance of
shares or other representative rights of the capital of a resident company of the
another Contracting State, may be taxed in the other Contracting State, provided that
a) the gains are from the disposal of shares whose value is resulting,
directly or indirectly, in more than 50%, of situated real estate
in that other Contracting State; or
b) the alienant has held, at any time during the period of twelve
months preceding the divestance, directly or indirectly, shares or other
rights that represent 20% or more of the capital of that society.
Any other gains obtained by a resident of a Contracting State by the
divestory of shares or other rights representative of the capital of a society
resident of the other Contracting State may also be taxed in that other State
Contractor, but the tax thus established will not be able to exceed 16% of the amount of the
gain.
Notwithstanding any other provision of this number, the gains obtained by a fund
of pensions resident of a Contracting State, and arising from the disposal of shares
or of other rights representative of the capital of a resident society of the other
State Contractor can only be taxed in the first Contracting State
mentioned.
5. The gains from the disposal of any other goods other than the
mentioned in the preceding paragraphs can only be taxed in the Contracting State of
that the alienant is a resident.
Article 14º
INDEPENDENT OCCUPATIONS
1. The income earned by a natural person who is a resident of a State
Contractor for the exercise of a liberal profession or other activities of a character
independent can only be taxed in that state, however, those yields
may also be taxed in the other Contracting State:
a) if that person customarily dispossesses in the other Contracting State of
a fixed installation for the exercise of its activities; in this case, only
may be taxed in the other Contracting State on the part of the income which
is attributable to that fixed installation; or
b) if that person remains in the other Contracting State for a period
or periods that exceed, in total, 183 days, in any period of twelve
months with start or term in the tax year concerned; in this case, it can only be
taxed in the other State the share of income earned from the activities
exerted in that other state.
2. The expression "liberal professions" covers, in particular, activities
independent of scientific, literary, artistic, educational or pedagogical character, well
as the independent activities of doctors, lawyers, engineers, architects,
dentists and accountants.
Article 15º
DEPENDENT PROFESSIONS
1. With proviso of the provisions of Articles 16º (percentages of members of
advice), 18º (Pensions) and 19º (Public Remunerations), wages, salaries and
other remunerations obtained from a job by a resident of a State
Contractors can only be taxed in that state, unless employment is
exercised in the other Contracting State. If the employment is exercised there, the remunerations
correspondents can be taxed in that other state.
2. Notwithstanding the provisions of paragraph 1, the remuneration obtained by a resident of a
State Contracting Officer of a job exercised in the other Contracting State may only be
taxed in the first mentioned state if:
a) the beneficiary remains in the other State for a period or periods
that do not exceed, in total, 183 days in any period of twelve months
with start or term in the tax year concerned; and
b) the remunerations are paid by an employer or in the name of
an employer who is not a resident of the other State; and
c) the remuneration shall not be borne by a stable establishment or
by a fixed installation that the employer has in the other State.
3. Notwithstanding the previous provisions of this Article, the remuneration of
a job exercised on board a ship or an aircraft used in traffic
international by a company of a Contracting State may be taxed in that
State.
Article 16º
PERCENTAGES OF MEMBERS OF COUNCILS
The percentages, passwords of presence and other similar remunerations obtained by
a resident of a Contracting State in the capacity of a member of the board of
administration, supervisory board, or other similar body of a society
resident of the other Contracting State may be taxed in that other State.
Article 17º
ARTISTS AND SPORTSMEN
1. Notwithstanding the provisions of Articles 14º (Independent Professions) and 15º
(Dependent occupations), the income earned by a resident of a State
Contractor in the quality of professional of spectacles, such as theatre artist,
cinema, radio or television, or musician, as well as of sportsman, coming from its
personal activities exerted, in that capacity, in the other Contracting State, may be
taxed in that other state.
2. Notwithstanding the provisions of Articles 7º (Professions of the Companies), 14º (Professions
independent) and 15º (Dependent Professions), the income from the activity carried out
personally by the professionals of spectators or sportsmen, in that capacity,
assigned to one other person, may be taxed in the Contracting State in which they are
exerted such activities of the professionals of spectators or of sportsmen.
Article 18º
PENSIONS
1. Pensions arising from a Contracting State and paid to a resident of the
another Contracting State may only be taxed in that other State.
2. Food pensions and other subsistence benefits paid to a resident
of a Contracting State may only be taxed in that State. However, pensions
of food and other subsistence benefits paid by a resident of a State
A contractor to a resident of the other Contracting State, can only be taxed at the
first mentioned State, in so far as the payer is not entitled to the
respective deduction.
Article 19º
PUBLIC REMUNERATION
1. (a) The wages, salaries and other remunerations, excluding pensions,
paid by a Contracting State or by a political subdivision or
administrative or local authority to a natural person, as a result
of services provided to that State or to that subdivision or autarky, only
can be taxed in that state.
b) wages, salaries and other remuneration can only, however, be
taxed in the other Contracting State if services are provided in that
State and if the natural person is a resident of that State:
(i) being its national; or
(ii) that it has not become its resident solely for the purpose of providing the
so-called services.
2. The provisions of Articles 15º (Dependent Professions), 16º (Percentages of
members of boards) and 17º (Artists and Desportists) applies to wages,
maturities and other remuneration, paid as a result of services provided in
connection to a commercial or industrial activity exercised by a State
Contractor or by a political or administrative subdivision or local municipality.
Article 20º
STUDENTS
The importances that a student, an apprentice or a trainee who is or has been,
immediately prior to their stay in a Contracting State, resident of the other
State Contracting and whose stay in the first mentioned State has as its sole
end your studies or your training, receive to cope with the expenses with your
subsistence, studies or training are not taxed in that state, provided that
provenham from sources situated outside that state.
Article 21º
OTHER INCOME
1. The elements of the income of a resident of a Contracting State, donde
want provenham, not covered by the previous Articles of this Convention only
can be taxed in that state.
2. The provisions of paragraph 1 shall not apply to income, which is not income of goods
real estate as they are defined in Article 6º (2) (Earnings of the goods
real estate), if the beneficiary of that income, resident of a Contracting State,
engage in activity in the other Contracting State by means of a stable establishment
in it situated or exercise in that other state an independent profession through a
fixed installation on it situated, being the right or the property, in relation to which the
income is paid, effectively connected to that stable establishment or installation
fixed. In this case, the provisions of Article 7º (Profits of companies) or of the
Article 14º (Independent Professions), as the case may be.
3. Notwithstanding the provisions of paragraphs 1 and 2, the elements of the yield of a
resident of a Contracting State, not covered by the previous Articles of the present
Convention and coming from the other Contracting State, may also be taxed
in that other state.
CHAPTER IV
ELIMINATION OF DOUBLE TAXATION
Article 22º
ELIMINATION OF DOUBLE TAXATION
1. In the case of Portugal, double taxation will be removed as follows:
a) When a resident of Portugal obtains income that, according to the
provisions of this Convention, can be taxed in Chile, Portugal
will deduct from the income tax of that resident an importance
equal to the tax paid in Chile (excluding, in the case of dividends, the
required tax in Chile regarding the profits that dividends are
paid). The importance deduced may not, however, exceed the fraction of the
income tax, calculated before the deduction, corresponding to the
income that can be taxed in Chile;
b) Where, in accordance with the provisions of this Convention, the income
obtained by a resident of Portugal are exempt from tax in this
State, Portugal may, notwithstanding, when calculating the tax quantitation
on the rest of the income of that resident, take into account the income
isento;
c) Notwithstanding the provisions of (a), when a resident corporation of
Portugal to receive dividends from a resident society of Chile, and which is
subject and not exempt from the corporate profits tax (Tax of
First Category) in Chile, Portugal will allow for deduction of dividends
included in the tax base of the society that receives them, provided that this
last society detains directly at least 25% of the capital of the
society that pays the dividends and that participation has been held from
uninterrupted form during the two preceding years, or since the date of the
constitution of the society that pays the dividends, if it has occurred
subsequently, but in this case solely if the participation is held
uninterruptedly during the same period of time.
2. Regarding Chile, double taxation will be eliminated as follows:
a) Residents in Chile who obtain income that, according to the
provisions of this Convention, have been subject to taxation in
Portugal, can impute tax paid this way in the Chilean tax
due to the same yield, with the proviso of the provisions
applicable from the legislation of Chile. The provisions of this paragraph shall apply to all
the income referred to in this Convention;
b) Where, in accordance with the provisions of this Convention, the income
obtained by a resident of Chile are exempt from tax in Chile, the
Chile may, notwithstanding, when calculating the quantitative of the tax on the rest
of the income of that resident, take into account the exempted income.
CHAPTER V
SPECIAL PROVISIONS
Article 23º
NON DISCRIMINATION
1. Nationwide nationals of a Contracting State shall not be subject in the other State
Contractor for no taxation or obligation with it related to different or more
gravy than those to which they are or may be subject to nationals of that other
State that they find themselves in the same circumstances, in particular with regard to the
residence. Notwithstanding the one set out in Article 1º (Targeted Persons), this provision
it will also apply to people who are not residents of one or both of the States
Contractors.
2. The taxation of a stable establishment that a company of a State
Contractor to have in the other Contracting State shall not be in that other State less
favorable than that of the companies in that other State who exercise the same
activities.
3. The provisions of this Article shall not be construable in the sense of obliging
a Contracting State to be granted to the residents of the other Contracting State the
personal deductions, rebates and reductions for tax purposes assigned as a function of the
marital status or family charges granted to its own residents.
4. Unless the provisions of paragraph 1 of Article 9º (associated Companies) are applicable, in the para.
6 of Article 11º (Juros) or in Article 12º (6) ( Royalties ), the interest, royalties and other
importances paid by a company from a Contracting State to one resident of the other
State Contracting will be deductible, for the purpose of the determination of taxable profit of
such a company, under the same conditions as if they were paid to a resident of the former
State mentioned.
5. The resident companies of a Contracting State whose capital, total or
partially, directly or indirectly, whether held or controlled by one or more
residents of the other Contracting State will not be subject, in the first State
mentioned, to no taxation or obligation with it related to it different or more
gravy than those to which they are or may be subject to similar companies
of that first mentioned state.
6. In the present Article, the term "taxation" means the taxes that are the subject of the
this Convention.
Article 24º
FRIENDLY PROCEDURE
1. When a person considers that the measures taken by a State
Contractor or by both the Contracting States conduct or be able to conduct, in
relation to you, to a taxation not in accordance with the provisions of this Convention,
be able to, regardless of the resources established by the national legislation of those
States, submit your case to the competent authority of the Contracting State of which it is
resident or, if your case is understood in paragraph 1 of Article 23º (No.
discrimination), to the competent authority of the Contracting State of which it is national. The
case should be submitted within three years from the date of the first
communication of the measure that gives cause to taxation not conforming to the provisions of the
Convention.
2. The competent authority, if the complaint appears to be founded and is not
in conditions of giving you a satisfactory solution, will strive to resolve the issue
through friendly agreement with the competent authority of the other Contracting State, the
end of avoidance of taxation not in accordance with the Convention.
3. The competent authorities of the Contracting States shall endeavour to resolve,
through friendly arrangement, the difficulties or the doubts to which it can give way to
interpretation or the application of the Convention.
4. Considering that the main purpose of the Convention is to avoid double taxation
international, the Contracting States agree that, in the case of the provisions of the
Convention to be used in such a way that they grant benefits not contemplated nor
intended, the competent authorities of the Contracting States should recommend,
under the friendly procedure, specific changes to be made to the Convention.
The Contracting States shall also agree that a recommendation in these terms shall be
appreciated and discussed expeditifully with a view to making the amendment of the Convention,
when necessary.
5. The competent authorities of the Contracting States shall be able to communicate
directly to each other in order to reach agreement in the terms indicated in the figures
previous.
Article 25º
EXCHANGE OF INFORMATION
1. The competent authorities of the Contracting States shall exchange among themselves the
information necessary to apply the provisions of this Convention or of the laws
internal of the Contracting States relating to taxes covered by the Convention, in the
measure in which the taxation provided in them is not contrary to the provisions of the present
Convention. The exchange of information is not restricted by the provisions of Article 1º
(Visged people). The information obtained by a Contracting State will be
deemed secret, in the same way as the information obtained on the basis of
internal legislation of that State, and can only be communicated to persons or authorities
(including courts and administrative authorities) in charge of liquidation or the
collection of the taxes required by that State, or of the declarative procedures or
executives relating to these taxes, or the decision of appeals regarding these
taxes. Such persons or authorities shall use the information thus obtained only
for the purposes referred to. Such information may be disclosed in the course of
public hearings of courts or in court decisions.
2. The provisions of paragraph 1 shall not in any case be construable in the sense of imposing
to a Contracting State the obligation to:
a) take administrative measures contrary to its legislation and practice
administrative or those of the other Contracting State;
b) provide information that cannot be obtained on the basis of your
legislation or in the context of its normal administrative practice or those of the
another Contracting State;
c) transmit revealing information of secrets or commercial processes,
industrial or professional, or information whose communication is contrary
to the public order.
3. If a Contracting State requests information in the terms of the provisions of the
this Article, the other Contracting State shall obtain the requested information from the
even if it would do so if it was in cause of its own taxation, even if that
another state not in need, at that time, of such information.
Article 26º
MEMBERS OF DIPLOMATIC MISSIONS AND
FROM CONSULAR POSTS
The provisions of this Convention shall not prejudice the tax privileges of which
benefit the members of diplomatic missions or consular posts by virtue of
general rules of international law or provisions of special agreements.
Article 27º
OTHER PROVISIONS
1. Regarding the funds or common investment accounts [ pooled investment
accounts or funds ] (as, for example, the Capital Investment Fund
Foreign, Law No. 18,657), subject to tax on remittances and whose administration
must compulsorily compete with a resident in Chile, the provisions of this Convention
will not be interpreted to restrict the imposition by Chile of the tax on
consignments made from those accounts or funds in connection with investments in
site assets in Chile.
2. For the purposes of paragraph 3 of Article XXII (Consultation) of the GATS-General Agreement on the
Trade in Services, the Contracting States agree that, notwithstanding the said
provision, any dispute arising as to the question of whether a particular
measure enrolled in the scope of this Convention, it may only be
submitted to the Council for Trade in Services, as provided for in the said number,
upon the consent of both the Contracting States. Any doubt as to the
interpretation of this provision shall be resolved in accordance with the provisions of paragraph 3 of the Article
24º (Friendly Procedure) or, in the absence of agreement under that procedure,
pursuant to any other procedure that comes to be agreed upon by both
Contracting States.
3. The provisions of this Convention shall not affect the application of the current
provisions of the Chilean legislation DL 600 (Status of Foreign Investment) in
vigour on the date of the signing of this Convention and with any changes which
come to be introduced later, as long as they do not change their general principle.
4. The contributions made in a given year, by services provided in that year and
paid by, or on account of, a natural person resident of a Contracting State or
which remains temporarily in that state, for a recognized pension fund
for tax purposes in the other Contracting State will be treated for tax purposes in the
first mentioned state, for a period that does not exceed in total 60 months, of the
same mode as the contributions paid to a recognized pension fund for
tax effects in that first mentioned state, if:
a) the person concerned has contributed regularly to the fund of
pensions for a period of time that has ended immediately
before that person becomes a resident of the first mentioned state or
from there to remain temporarily; and
b) the competent authority of the first mentioned State agrees that the
pension fund corresponds, generally, to a pension fund
recognized for tax purposes by that State.
For the purpose of this number, the expression "pension fund" comprises a fund of
pensions created under the social security scheme of a Contracting State.
5. The provisions of this Convention shall not affect taxation in Chile of a
resident of Portugal, regarding the profits attributable to a stable establishment
situated in Chile, in the case of the Tax of First Category or the Tax
Additional, but only if the First Category Tax is deductible in the calculation of the
Additional Tax.
CHAPTER VI
FINAL PROVISIONS
Article 28º
ENTRY INTO FORCE
1. The Contracting States shall notify each other in writing, by diplomatic means,
compliance with the formalities required by the respective legislation on entry
in force of this Convention. This Convention shall enter into force on the date of
last of the said notifications.
2. The provisions of this Convention shall be applicable:
a) In Portugal:
(i) as to the taxes due at the source whose operative fact arises in or
after January 1 of the calendar year immediately following that of the
entry into force of this Convention;
(ii) as to the remaining taxes, in respect of income
produced in any fiscal year with start on or after 1 of
January of the calendar year immediately following that of the entry into force of the
this Convention; and
b) In Chile:
on taxes on income earned and on the
amount of paid, credited to account, placed at the disposal or
accounted for as an expense, on or after January 1 of the year
civil immediately following that of the entry into force of the present
Convention.
Article 29º
COMPLAINT
1. This Convention shall remain in force for a period of time
undetermined, but any of the Contracting States may send to the other State
Contractor a notice of denunciation, in writing, by diplomatic way, on or before 30
of June of any calendar year after the expiration of a period of five years from the
date of its entry into force.
2. This Convention shall cease to apply:
a) In Portugal:
(i) as to the taxes due at the source whose operative fact arises in or
after January 1 of the calendar year immediately following the year
specified in the said notice of denunciation;
(ii) as to the remaining taxes, in respect of income
produced in the fiscal year with commencement on or after January 1 of the
calendar year immediately following the year specified in the said
notice of denunciation;
b) In Chile:
on taxes on income earned and on the
amount of paid, credited to account, placed at the disposal or
accounted for as an expense, on or after January 1 of the year
civil immediately following the year specified in the said notice of
denunciation.
IN TESTIMONY OF which the undersigned, duly authorized for the
effect, they have signed this Convention.
MADE IN SANTIAGO, at the seven days of the month of July two thousand and five, in
duplicated, in the Portuguese, Spanish and English languages, being all texts
equally valid. In the event of a divergence of interpretation of this Convention, the
english text will prevail.
BY THE PORTUGUESE REPUBLIC BY THE REPUBLIC OF CHILE
Secretary of State for Business
Foreigners and Cooperation
Minister of Finance
João Gomes Cravinho
Nicolás Eyzaguirre Guzmán
PROTOCOL TO THE CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND
REPUBLIC OF CHILE TO AVOID DOUBLE TAXATION AND PREVENT
A TAX EVASION IN INCOME TAX
At the time of the signing of the Convention between the Portuguese Republic and the Republic
of Chile to avoid double taxation and prevent tax evasion in respect of
income tax, the signatories agreed on the following provisions, which
are an integral part of the Convention.
1. Ad Article 2º (Taxes targeted)
If, after the date of the entry into force of the Convention, one of the Contracting States
to introduce a heritage tax under the respective domestic legislation, is
agreed that the Contracting States shall hold negotiations with a view to the celebration of
a Protocol to amend the Convention, in the sense of the extension of its scope of
mode to understand any tax on the heritage that is introduced. The
terms of the said Protocol should take into consideration the agreements between each of the
Contracting States and third States States relating to the elimination of double taxation
of the heritage.
2. Ad article 3 of Article 7º (Profits of companies)
It is understood that the provisions of Article 7º (3) (Profits of companies) shall only apply since
that the expenditure may be attributable to the stable establishment in compliance
with the provisions of the tax legislation of the Contracting State in which the establishment
stable is situated.
3. Ad Article 2 (Dividends) Article 10º (Dividends)
Regarding the application of the additional tax under the legislation of Chile, it is
agreed that:
(i) in the case that the first-rate tax is no more than fully
deductible in the calculation of the amount of the additional tax required; or
(ii) in the case of the rate of the additional tax applicable to the residents of Portugal,
as provided for in accordance with the provisions of Article 4º (Resident) of the
this Convention, exceeds 42%,
the Contracting States shall consult with a view to the amendment of the Convention in the
a sense of re-establishing the balance of the benefits provided for under the Convention.
4. Ad article 3 of Article 10º (Dividends)
It is understood that the expression "other rights" includes an agreement for participation in the
profits (association in participation).
5. Ad Paragraph 2 (b) of Article 11º (Interest)
It is agreed that, when Portugal applies a rate of 5% under Article 6º of the
Directive 2003 /49/CE of the Council of the EU, that lower rate will apply
automatically, with respect to Article 11º, paragraph 2 (b), in relation to interest
coming from Chile and whose beneficial owner is a resident of Portugal, and to the
interest coming from Portugal and whose beneficial owner is a resident of Chile, in the
same conditions as if the said lower rate had been specified in the
mentioned above.
The competent authority of Portugal shall inform, without delay, the competent authority
of Chile that the requirements for the application of this point have been brought together.
6. Ad Articles 10º (Dividends), 11º (Interest) and 12º (Royalties)
The provisions of Articles 10º (Dividends), 11º (Interest) and 12º ( Royalties ) will not be applicable
whether the main objective or one of the main objectives of any related person
with the creation or assignment of a right or a credit in respect of which they are paid
the dividends, the interest or the royalties is to benefit from the provisions of these Articles
upon the said creation or assignment.
7. Ad Article 13º (Mais-valias)
In the case of an alienant referred to in Article 13º (4) (b) (Mais-valias), which
held the shares or other rights divested for a period of more than twelve months
and whose usual business does not consist of the sale and purchase of shares, the tax levied
may not exceed 16% of the amount of the gain.
In any case, it is considered that the alienant does not carry out the usual activity of
sale and purchase of shares when the participation in the capital of the society is higher than
50%.
8. Ad Article 18º (Pensions)
It is understood that the term "pensions" includes the payments made for a plan to
pensions or a beneficiary in accordance with the standards of a plan
recognised for tax purposes as a pension plan by the Contracting State of
that the payments come from.
9. Ad Article 22º (Elimination of double taxation)
(i) It is agreed that the information set out in the Circular 17 forms of
2004, from Chile, and the "Certificate of Fiscal Residence" used by the
competent Portuguese authority, in force at the date of the signature of the present
Convention, are sufficient for the purposes of the implementation of the provisions of the
Convention.
(ii) Any rectification or amendment to the manner of application above agreed
will be resolved by mutual agreement between the competent authorities.
10. Ad Article 23º (Non-discrimination)
It is understood that the provisions of Article 23º (4) (Non-discrimination) should not be
interpreted to prevent the application by a Contracting State of the
provisions of the respective domestic legislation relating to the sub-capitalization, save in the
cases in which the associated companies demonstrate that, due to the characteristics
special needs of their activities or their specific economic circumstances, the
conditions established or imposed between these companies comply with the
principle of absolute independence (arm's length principle).
11. Ad article 2 of Article 24º (Friendly Procedure)
In the case of Portugal, any agreement reached will be applied independently of the
deadlines set out in their domestic law.
IN TESTIMONY OF WHICH the undersigned, duly authorized for the
effect, signed the present Protocol.
MADE IN SANTIAGO, at the seven days of the month of July two thousand and five, in
duplicated, in the Portuguese, Spanish and English languages, being all texts
equally valid. In the event of a divergence of interpretation of this Protocol, the
english text will prevail.
BY THE PORTUGUESE REPUBLIC BY THE REPUBLIC OF CHILE
Secretary of State for Business
Foreigners and Cooperation
Minister of Finance
João Gomes Cravinho
Nicolás Eyzaguirre Guzmán
CONVENIO BETWEEN LA REPUBLICA PORTUGUESE Y LA REPUBLICA DE
CHILE TO AVOID LA DOBLE IMPOSICION Y TO PREVENT LA
TAX EVASION EN RELACION AL IMPUESTO A LA RENTA
La Republic Portuguese y la Republic de Chile, wishing to conclude un Convenio for
avoid la doble imposición y to prevent la evasión fiscal en relación al impuesto a la
renta
Han agreed lo siguiente:
CAPITCHAPTER I
AMBITO DE APPLICACION DEL CONVENIO
Artículo 1
PERSONAS PURCHASED
This Convenio applies to las personas residents of uno that of both States
Contractors.
Artículo 2
IMPUTS PURCHASED
1. This Convenio applies to them impugties over la renta exigibles by each uno of
the Contracting States, cualquiera that sea el system de exacción.
2. If considered impugn about la renta los que gravan la totalidad de la renta o
cualquier part of la misma, includ los impubasts on las greancias derived from la
enajenación de bienes muebles the inmuebles, los impubasts about el import of sueldos o
salarios paid by las companies, así as los impukets about las plusvalías.
3. Los impukets actuales to them that applies this Convenio son, en particular:
a) en Portugal,
(i) El impuesto on la renta de las personas naturales ( " Tax
on the Throughput of Singular People-IRS " );
(ii) El impuesto over la renta de las societies ( " Tax on the
Income of Collective Persons-IRC) " ; y
(iii) La overtasa local del impuesto over la renta de las societies
("Derrama");
(en adelante named "Impuesto Portuguese"); y
b) en Chile, los impukets laid out en la " Ley about Impuesto a la
Renta "(en adelante named" Chilean Impuesto ").
4. El Convenio shall also apply to them impugned by idéntic naturalness o
sustancially analogous that if stablezcan con posterioridad a la closes de la firma del
mismo, y that se añadan to los actuales the les sustituyan. Las competent authorities of
los Contracting States to communicate with each other, las modiaciones sustanciales
that if hayan introduces en sus respective legislationsimpositive.
CAPITCHAPTER II
DEFINICIONES
Artículo 3
DEFINICIONES GENERALES
1. The los efectos of this Convenio, unless of su context if infiera una
interpretación different:
a) el terminus "Portugal" means el territorio de la Portuguese Republic
situated en el continent europeo, los archipiélagos de ble y de
Wood, and incluye su mar territorial y aguas interiors así as el fondo
marino, el subsuelo y cualquier otra area donde la republic Portuguese
ejerce derechos de superanía o jurisdicción de conformidad con el
derecho international y la legislación Portuguese.
b) el terminus "Chile" means la Republic of Chile and incluye su mar
territorial y aguas interiors así as el fondo marino, el subsuelo y
cualquier otra area donde la Republic de Chile ejerce derechos de
superanía the jurisdicción de conformidad con el derecho international y la
legislación chilena.
c) las expresiones "un Contracting State" y " el otro Contracting State Contracting
significan Chile y Portugal, según lo requiera el context;
d) el terminus "persona" comprende las personas naturales, las societies y
cualquier otra grouación de personas;
e) el terminus "sociedad" means cualquier persona legal the cualquier
entidad that considers itself to be legal persona to impositive efects;
f) las expresiones "company de un Contracting State" y " company del otro
State Contracting " signian, respectively, una company exploded
by un resident of un State Contracting y una una company blown up by
un resident del otro Contracting State;
g) la expresión "international trafficking" means all transport carried out
by un buque the aircraft blown up by una un State company
Contractor, unless cuing ese transport es carried out welly between
punts situated en el otro Contracting State;
h) la expresión "autoridad competent" means:
(i) en Portugal, el Minister de Hacienda, el Director General de
Impukets ( "Director-General of Taxes" ) the el representative
authorised of baskets; y
(ii) en Chile, el Minister de Hacienda o su authorised representative;
i) el terminus "national" means:
(i) cualquier persona natural that posea la nationalidad de un State
Contractor; the
(ii) cualquier legal persona the asociación constituted as a la
legislación vigente de un Contracting State.
2. For la applicación del Convenio by un Contracting State, en cualquier
moment, cualquier expresión in the definite en el mismo tendrá, unless of su
context if infiera una interpretación different, el meaning that, en ese moment, le
ascriya la legislación de ese State relative to los impukets that son object del
Convenio, prevalent el meaning ascribed by la legislación impositive about el
that resulted from otras ramas del Derecho de ese State.
Artículo 4
RESIDENT
1. los efectos de este Convenio, la expresión " resident of un State
Contractor " means all persona that, en virtud de la legislación de ese State, esté
subject to imposición en el mismo by razón de su domicilio, residencia, home of
dirección, place de constitución o cualquier otro criterio de naturaleza analogous and incluye
también al propio State y a cualquier subdivisión politics the administrative the autoridad
location. Sin embargo, this expresión no incluye a las personas that estén subjected to
imposición en ese State exclusively by la renta que obtengan of fuentes situated
en el cited State.
2. Cuando, en virtud de las disposiciones del párrafo 1, una persona natural sea
resident of both Contracting States, su situación se resolves de la siguiente
the manera:
a) dicha persona will be considered resident sobo del State donde tenga una
vivienda permanent to su disposición; si tuviera vivienda permanent a
su disposición en both states, if you will consider resident sobo del State
con el que mantenga relates personales y economic bad premieres
(centre of intereses vitales);
b) si no pudiera determinate el State en el que dicha persona tiene el
centre of sus intereses vitales, the si in the tuviera una vivienda permanent a
su disposición en ninguno de los states, will consider itself to be resident
del State donde viva habitually;
c) si viviera habitually en both states, the in the lo hiciera en ninguno de
ellos, will consider itself resident socio del State del que sea national;
d) si fuera national of both states, the in the lo fuera of ninguno de ellos, las
competent authorities of los Contracting States resolverán el caso
upon un procedurum of acuerdo mutuo.
3. Cuando en virtud de las disposiciones del párrafo 1 una persona, which in the sea
natural persona, sea resident of both Contracting States, las authorities
competent of los Contracting States deberán hacer lo posible by solving el case
upon acuerdo mutuo, teniendo en consideración la headquarters de dirección, la workshop
central the main, el place de constitución o cualquier otro pertinent factor. En
auses of ese acuerdo, dicha persona in the tendrá derecho the ninguno de los beneficios
contemplated by this Convenio, save en cuanto puede require los beneficios de los
Artícles 23 (No discriminación) y 24 (Proceedings of acuerdo mutuo).
Artículo 5
PERMANENT STABLECOIN
1. The efectus of this Convenio, la expresión "permanent stacecimiento" means
un place fijo de dealers by el cual una company performs all the part of su
actividad.
2. La expresión "permanent staishimiento" comprende, en special:
a) las sedes de dirección;
b) las branches;
c) las workshops;
d) las factories;
e) los talleres; y
f) las mines, los pozos of oil o de gas, las canteras o cualquier otro
place en relación a la exploración o explotación of naturales features.
3. La expresión "permanent stablemiento" también incluye:
a) una oeuvre o proyecto de construcción, instalación o montaje y las activities
of supervisión relating con ellos, pero cuando dicha obra work,
proyecto de construcción o actividad tenga una duración superior to six
months;
b) la prestación de servicios by the part of una company, includ los servicios
of consultans, by intermedio de empleados u otras personas naturales
ordered by la company for ese fin en el case that tales
activities prosigan en el country during un period the periods that en total
excedan of 183 días, within un period cualquiera of sweet months.
A los efectos del calculus de los limites temporales to which refide this paddle,
las activities carried out by una company asociada a otra company en el meaning del
artículo 9 (Asociated Companies) of this Convenios, erán aggregates al period during
el cual son carried out las activities by la company de la que es asociada, si las
activities of both companies son idénical the sustancially similar.
4. In spite lo dispuesto previously en this artículo, one considers that la
expresión "permanent stablecoin" in the incluye:
a) la utilización de instalaciones con el sole fin de almacenar, exponer o
deliver biennials the mercancías belonging to la company;
b) el mantenimiento de un deposit of bienes the mercancías pertaining to
la company con el sole fin de almacenarlas, exponerlas o entregarlas;
c) el mantenimiento de un deposit of bienes the mercancías pertaining to
la company con el sole fin de que sean transformed by otra company;
d) el mantenimiento de un place fijo de negotios con el sole fin de
buy bienes the mercancías, o de recoger información, for la company;
e) el mantenimiento de un place fijo de negotios con el sole fin de hacer
publicidad, suministrar información o carry out scientific investigations
for la company y cualquier otra actividad similar, cuando esas
activities tengan un character preparatorio the ancillary.
5. In spite lo dispuesto en los párrafos 1 y 2, cuando una persona, distinct from un
independiente agent al que le sea applicable el párrafo 7, actue per cuenta de una company
y ostente y ejerza habitually en un State Contracting powers that la faculten to
conclude contracts by cuenta de la company, if you will consider that esa company tiene un
permanent stacecimiento en ese State respect of cualquiera of las activities which
dicha persona realice for la company, unless las activities of esa persona se
limiten to las mentioned en el párrafo 4 y which, from being carried out by medio de un place
trade fijo, dicho place fijo de dealers in the fuere considered as un
permanent stacimiento de acuerdo con las disposiciones de ese párrafo.
6. In spite of the previous disposals of this article, one considers that una
company aseguradora resident of un Contracting State tiene, save by lo which respects the
los reaseguros, un stablecimiento permanent en el otro State Contracting si recauda
masterpieces en el territorio de este otro State o si asegura riesgos situated en él by medio de
un distinguished representative of un independiente al who applies el párrafo 7.
7. No one considers that una company tiene un stabilimiento permanent en un
State Contracting by el mere hecho de que realice sus activities en ese State by
medio de un corridor, un comisionist general o cualquier otro agent independiente,
siempre that dichas personas actuen inside del marco ordinario de su actividad, y que en
sus relates commerciales the financieras con dichas companies in the if pacten the impongan
condiciones acepted the impurities that sean distinct from las generally agreed by
independient agents.
8. El hecho de que una sociedad resident of un State Contracting control the sea
controlled by una sociedad resident del otro Contracting State, what realice
activities entrepreneurship en ese otro State (ya sea by medio de un stabilecimiento
permanent that of otra manera), in the convierte by sí solo the cualquiera of these societies en
permanent stablecoin de la otra.
CAPITCHAPTER III
IMPOSICION DE LAS RENTAS
Artículo 6
RENTS OF BIENES INMUEBLES
1. Las rents that un resident of un State Contracting obtenge of biennials
inmuebles (includ las rents of agricultural exploits o forestales) situated en el
otro State Contracting pueden someterse to imposición en ese otro State.
2. To los efectos de este Convenio, la expresión "bienes inmuebles" tendrá el
meaning that le attribuya el derecho del State Contracting en that los bienes estén
situated. Dicha expresión incluye en whole case los bienes accesorios to los bienes
inmuebles, el ganado y el equipo used en explotaciones agricultural y forestales, los
derechos to los que sean applicables las disposiciones de derecho general relative to los
bienes root, el enjoy bienes inmuebles y el derecho a percibir paid variables o
fijos by la explotación o la concesión de la explotación de yacimientos minerales,
y fuentes y otros resources naturales. Los bouques y aircraft in the se consider bienes
inmuebles.
3. Las disposiciones del párrafo 1 son applicables a las rents derived from la
utilización direly, el arrendamiento o aparcería, así as cualquier otra form of
explotación de los bienes inmuebles.
4. Las disposiciones de los párrafos 1 y 3 if applied equally to las rents
derivates of los bienes inmuebles de una company y de los bienes inmuebles used
for la prestación de servicios personales independients.
5. Previous disposables también son applicables to las rents from
bienes muebles related con bienes inmuebles y de la prestación de servicios for
la mantención o explotación de bienes inmuebles.
Artículo 7
GRANARIES EMPRESARIALES
1. Los beneficiation of una company of un State Contracting Solely pueden
someterse to imposición en ese state, a in the being that la company realice su actividad en el
otro Contracting State by medio de un stabilecimiento permanent situated en él. Si la
company realizes the ha realized su actividad de dicha manera, los beneficios de la
company pueden someterse a imposición en el otro State, pero sobo en la measure en
that puedan ascribe to the permanent stablecoin.
2. Suject a lo foreseen en el párrafo 3, cuando una company de un State
Contractor realice su actividad en el otro Contracting State by medio de un
permanent stainless situated en él, en each Contracting State ascribe to
dicho stafimiento los beneficios that este hubiera was able to be una company
distinctive y separate that realizes las mismas the similar activities, en las mismas o
similar condiciones y treatse con total independencia con la company de la que es
permanent stainless y con all las demás personas.
3. To la determinación de los beneficios del stabilecimiento permanent se
will allow la deducción de los spend en that if haya incurs to la realización de los
fines del stabilecimiento permanent, purchased los expenditure de dirección y generales
de administración for los mismos fines, both si se efectuan en el State en que se
encubetween el stabilecimiento permanent as en otra part.
4. Mientras sea usual en un Contracting State to determine los beneficiation
imputables a un stabilecimiento permanent over la base de un repair of los
benefits totales de la company between sus various parts, lo laid down en el párrafo 2
in the impedance that ese Contracting State determines from this manera los beneficios
imponibles; sin embargo, el method of repairing adopted habrá of being such that el
result obtended sea as per the los principios contended en this artículo.
5. No one ascribe ningún beneficiio to un permanent stablemiento per el mero
hecho that este buy bienes the mercancías for la company.
6. The efectus of the preceding los párrafos, los beneficios imputables al stacimiento
permanent if calcularán each año by el mismo method, to in the being that existing motifs
valid y enough to proceed from otra shape.
7. Cuating los beneficiendan rents regulated separately en otros
artícles of this Convenio, las disposiciones of aquéllos in the quedarán affected by las
of this article.
Artículo 8
TRANSPORTATION MARITIMO Y AEREO
1. Los beneficiation of una company of un State Contracting proceeding of la
explotación de buques the aircraft en trafficking international socio pueden someterse a
imposición en ese State.
2. Las disposiciones del párrafo 1 son también applicables to los beneficios
proceteeth de la participación en un "pool" , en una una company mixta o en una agencia de
explotación international.
3. Siempre that societies of distinguished countries acuerden explode un negocio de
air transport jointly, en la forma de un consorcio o de una forma de
asociación similar, la disposiciones del párrafo 1 if applying to aquella part of los
beneficios del consorcio o asociación que corresponds a la participación en ese
consortius o asociación de una sociedad who are resident of un Contracting State.
Artículo 9
ASOCIATED COMPANIES
1. Cuating
a) una company de un Contracting State participates directly the indirectly
en la dirección, el control o el capital de una company del otro State
Contractor, the
b) unites mixed personas directly the indirectly en la dirección,
el control o el capital de una company de un State Contracting y de una
company del otro Contracting State,
y en uno y otro case las of the companies estén, en sus relate commerciales the funerals,
joined by condiciones aceped the impugent that difieran de las that serían agreed upon
by independient companies, las rents that habrían was obtenuated by una de las
companies from in the existing dichas condiciones, y that of hecho in the if han realized the cause
de las mismas, podrán incluirse en la renta de esa company y sometained to imposición en
consecutive.
2. Cuando un Contracting State incluya en la renta de una company of ese State,
y someta, en consecuencia, a imposición, la renta about la cual una company del otro
State Contracting ha been sometised to imposición en ese otro State, y la renta así
included es renta que habría was held by la company del State mentioned en
primer place si las condiciones convent among las of the hubieran companies were las that
if hubiesen convenes among independient companies, ese otro state, si is de
Acuerdo that el adjustment carried out by el State mentioned en primer place is justified
both en sí mismo and con respecto al monto, practicing el adjustment corresponente de la
cuantía del impuesto that ha percioed over esa renta. To determine dicho adjust if
tendrán en cuenta las demás disposiciones of this Convenio y las authorities
competent from the Contracting States if consultarán en necesario.
Artículo 10
DIVIDENDS
1. Los dividends paid by una sociedad resident of un Contracting State a
un resident del otro State Contracting pueden someterse a imposición en ese otro
State.
2. Dichos dividends pueden también someterse a imposición en el State
Contractor en que resida la sociedad that pays los dividends y según la legislación de
this state. Sin embargo, si el beneficiario effective de los dividends es un resident
del otro Contracting State, el impuesto así demanded in the rotten exceed del:
a) 10 per ciento del import gross de los dividends si el beneficiario
effective es una sociedad that posee directly al minus el 25 per
ciento del capital de la sociedad that pays them dividends; y
b) 15 per ciento del import gross de los dividends en all los demás
cases.
Las competent authorities of los Contracting States Contracting estaecerán de mutuo
Acuerdo la forma de applicación de these restrictiones.
This párrafo in the affects la imposición de la sociedad respect de los beneficios
Con job to them that will pay them dividends. En el case of Chile, this imposición
incluye la applicación del Impuesto Additional.
3. El terminus "dividends" en el sense of this article means las rentas de las
o actues u otros derechos, except for credit, which permitan to participate en los
benefits, así as las rents of otros derechos subjecta al mismo régimen tributario
that las rentas de las actues by la legislación del banco del que la sociedad that hace
la distribución sea resident.
4. Las disposiciones de los párrafos 1 y 2 in the son applicables si el beneficiario
effective de los dividends, resident of un Contracting State, carries out en el otro State
Contractor, del que resident la sociedad that pays them dividends, una actividad
business to través de un stabilecimiento permanent situated allí, the provides en ese otro
State unos servicios personales independients by medio de una base fija situated allí,
y la participación that genera los dividends is effectively linked to dicho
permanent stablecoin the fija base. En such case, son applicables las disposiciones del
artículo 7 (Beneficios empresariales) o del artículo 14 (Servicios personales
independients), según proceed.
5. Cuando una sociedad resident of un Contracting State obtenga benefits the
rentas proceeded del otro Contracting State, ese otro State in the podra demand ningún
impugent on los dividends paid by la sociedad, save en la measure en que esos
dividends if pay a un resident of ese otro State o la participación who genera los
dividends is effectively linked to un permanent stablecoimiento o the una base
fija situated en ese otro State, ni someter los beneficios in the distribuidos de la sociedad
un impuesto about los mismos, aunts them dividends paid o los beneficios in the
distributes consistan, total the partially, en beneficiates the rents proceeded of ese
otro State.
Artículo 11
INTERESES
1. Los intereses proceeded from un State Contracting y paid to un resident del
otro State Contracting pueden someterse to imposición en ese otro State.
2. Sin embargo, interese dichos pueden también someterse a imposición en el
State Contracting del que procedan y según la legislación de ese State, pero si el
beneficial owner es resident del otro Contracting State, el impuesto así required in the
rotten exceed del:
a) 5 per ciento del import gross de los intereses derived from bonos o
values that son regular y sustantly transados en una scholarship from
reconocal values;
b) 10 per ciento del import gross de los intereses derived from:
(i) préstamos otored by banks y compañías de insurance;
(ii) la venta the credit of machineries y equipo, paid by el
buyer al beneficiario herd which es el seller of dicha
machinery y equipo.
c) 15 per ciento del import gross de los intereses en all los demás cases.
Las competent authorities of los Contracting States Contracting estaecerán de mutuo
Acuerdo la forma de applicación de these restrictiones.
3. El terminus "intereses", en el sense of this article means las rents of
credits of cualquier naturaleza, con o sin guaranteed mortgage, y en particular, las
rents of public values y las rentas de bonos o " debentures ", así as cualquiera
otra renta que la legislación del State from donde procedan los intereses asimile to las
rents of las cantities given en préstamo. El terminus "intereses" in the incluye las rentas
purchased en el artículo 10 (Dividends).
4. Las disposiciones de los párrafos 1 y 2 in the son applicables si el beneficiario
effective de los intereses, resident of un Contracting State, carries out en el otro State
Contractor, del que proceden los intereses, una actividad entreprenedia by medio de un
permanent stainless permanent situated allí, the provides unos servicios personales
independients by medio de una base fija situated allí, y el credit that genera los
intereses is effectively linked to the permanent dichotomy of the fija base.
En such case, son applicables las disposiciones del artículo 7 (Beneficios empresariales) o
del artículo 14 (Servicios personales independientes), según proceed.
5. Los intereses if considered proceeded by un Contracting State cuing el
deudor sea resident of ese State. Sin embargo, cuing el deudor de los intereses, sea
o in the resident del State Contracting, tenga en un Contracting State un
permanent stablecoimiento the una base fija en relación con el cual se haya contracted la
deuda per la that if pagan los intereses, y éstos se soportan by el stabilecimiento
permanent the la base fija, interese dichos se consider proceteeth del State
Contractor donde estén situated el stacecimiento permanent the la base fija.
6. Cuando en razón de las relates existing speciales among el deudor y el
beneficial beneficiario, the de las that uno y otro mantengan con terceros, el import from los
interese exceed, by cualquier motive, el import that hubieran convent el deudor y
ei acreedor en ausencia de tales relate, las disposiciones of this article in se
Applicarán evil that the latter matters. En such case, la cuantía en exceso podra
someterse the imposición de acuerdo con la legislación of each Contracting State,
teniendo en cuenta las demás disposiciones of this Convenio.
Artículo 12
REGALIAS
1. Las regalia proceeded from un State Contracting y paid to un resident del
otro State Contracting pueden someterse to imposición en ese otro State.
2. Sin embargo, these regalias pueden también someterse a imposición en el State
Contractor del que procedan y de acuerdo con la legislación de este State, pero si el
beneficial owner es resident del otro Contracting State, el impuesto así required in the
puede exceed del:
a) 5 per ciento del import gross de las regalas by el uso the derecho al uso
of equipos industriales, commerciales the scientific;
b) 10 per ciento del import gross de las regalías en all los demás cases.
Las competent authorities of los Contracting States Contracting estaecerán de mutuo
Acuerdo la forma de applicación de these restrictiones.
3. El terminus "regalas" empleated en this artículo means las cantities of
cualquier clase paid by el uso, the el derecho al usage, from author derechos on works
literaria, artistic the scientific, includ las film film the film,
cintas y otros medios de reproducción de imagen y el sonido, las patents, marks,
diseños the models, plans, formulas the secret procedurum u otra propiedad
intangible, o by el uso the derecho al uso, de equipos industriales, commerciales o
scientific, o by informaciones relating to experiencias industriales, commerciales o
scientific.
4. Las disposiciones de los párrafos 1 y 2 in the son applicables si el beneficiario
effective de las regalas, resident of un Contracting State, carries out en el State
Contractor del que proceden las regalas una actividad entrepreneem by medio de un
permanent stainless permanent situated allí, provides you with independient personales
by medio de una base fija situated allí, y el bien o el derecho by el que se pagan las
regalyls is effectively linked to permanent dicho permanent the fija base.
En such case son applicables las disposiciones del artículo 7 (Beneficios empresariales) o
del artículo 14 (Servicios personales independientes), según proceed.
5. Las regalas if considered proceeded by un Contracting State cuing el
deudor es un resident of ese State. Sin embargo, cuando quien pays las regalas, sea
o in the resident of un Contracting State, tenga en uno de los Contracting States un
permanent stablecoimiento the una base fija en relación con el cual se haya contracted la
Obligación de pago de las regalías y dicho stacesimiento permanent the fija base
soporte la cargo de las mismas, las regalías se consider proceteeth del State
donde esté situated el stabilecimiento permanent the la base fija.
6. Cuando en razón de las relates existing speciales among el deudor y el
beneficial beneficiario, the de las that uno y otro mantengan con terceros, el import de las
regalyas, habida cuenta del uso, derecho o información by los que se pagan, exceed del
that habrían convent el deudor y el beneficiario herd en ausencia de tales
relates, las disposiciones of this article in the se applicarán bad that to the latter
import. En such a case, la cuantía en exceso podra someterse the imposición de acuerdo con
la legislación of each Contracting State, teniendo en cuenta las demás disposiciones
of this Convenio.
Artículo 13
CAPITAL GREELDERS
1. Las greancias that un resident of un Contracting State obtenge de la
enajenación de bienes inmuebles situated en el otro State Contracting pueden
someterse the imposición en this last state.
2. Las greancias derived from la enajenación de bienes muebles that formen part
del active de un stabilecimiento permanent that una company de un Contracting State Contracting
tenga en el otro Contracting State, the one of bienes muebles that belong to una base fija
that un resident of un Contracting State tenga en el otro Contracting State for la
prestación de servicios personales independients, bought las greancias
derivates de la enajenación de este permanent stacimiento (sodium the joint con el
de la company de la que que forme part) o of this base fija, pueden someterse a imposición
en ese otro State.
3. Las greancias derived from la enajenación de buques the exploded aircraft en
international trafficking, that of bienes muebles affections a la explotación de dichos bouques o
aircraft, loeden pueden someterse a imposición en el Contracting State donde resida el
enajener.
4. Las greancias that un resident of un Contracting State obtenge by la
enajenación de actues u otros derechos representational del capital de una sociedad
resident del otro Contracting State, pueden someterse a imposición en ese otro State
Contractor si:
a) las ganancias de capital provienen en bad de un 50 per ciento de su
value, directly the indirectly, of bienes inmuebles situated en ese otro
State Contracting, the
b) el enajenante ha posehyde, en cualquier moment inside del period de
sweet months precedent a la enajenación, directly the indirectly,
o actues u otros derechos consistent en un 20 for cient the bad del
capital of esa sociedad.
Cualquier otra ganancia obtended by un resident of un Contracting State by
la enajenación de actues u otros derechos representational del capital de una
sociedad resident en el otro State Contracting también pueden someterse a
imposición en ese otro Contracting State, pero el impuesto así demanded in the podra
exceed del 16 per ciento del monto de la ganancia.
In the Notwithstanding cualquier otra disposición de este párrafo, las greancias obtenished
by un fondo de pensiones who are resident of un Contracting State
coming from la enajenación de actues u otros derechos representational del
capital of una sociedad that es resident del otro Contracting State, sodium pueden
someterse the imposición en el Contracting State Contracting mentioned en primer place.
5. Las greancias derived from la enajenación de cualquier otro bien distinct from los
mentioned en los párrafos precedes sobo pueden someterse a imposición en el
State Contracting en that resida el enajenante.
Artículo 14
SERVICIOS PERSONALES INDEPENDIENTS
1. Las rents that una persona natural resident of un Contracting State Contracting obtenga
by la prestación de servicios profesionales u otras activities of independiente character
atlo pueden someterse a imposición en this Contracting State. Sin embargo, ese
rentas pueden también be sometised to imposición en el otro Contracting State:
a) cueing dicha persona tenga en el otro Contracting State una base fija de
la that avails regularly for el desempeño de sus activities; en
such a case, suns puede someterse a imposición en this otro State la parte
of las rents that sean ascribbles the dicha base fija; the
b) cueing dicha persona permanezca en el otro Contracting State by un
periode the periodos that en total suman the excedan 183 días, inside un
periodo cualquiera of sweet months that comience finish during el año
taxtario considered; en such case, sodium pueden someterse a imposición
en this otro State la part de la renta obtenida de las Activities
disempeñadas by él en this otro State.
2. La expresión "servicios profesionales" buy especially las activities
independients of scientific character, literario, artistic, educational the pedagogical, así
how to las independient activities of doctors, abogs, ingenieros, architects,
odontogues, y counters.
Artículo 15
SERVICIOS PERSONALES DEPENDIENTS
1. Sin perjuicio de lo dispuesto en los artícles 16 (Directors ' Participations),
18 (Pensiones) y 19 (Public works), los sueldos, salarios y otras remuneraciones
obtended by un resident of un Contracting State by razón de un empleo sobo
pueden someterse a imposición en ese state, a in the being that el empleo se realice en el
otro Contracting State. Si el empleo takes place of esa form, las remuneraciones
derivates del mismo pueden someterse a imposición en otro State.
2. In spite las disposiciones del párrafo 1, las remuneraciones obtenened by un
resident of un State Contracting en razón de un empleo held en el otro State
Contractor if gravarán exclusively en el primer State si:
a) el perceptor remains en el otro State during un period the periods
cuya duración no exceed en set of 183 días en cualquier period of
sweet months that comience finish en el el año tributario considered, y
b) las remuneraciones se pagan by, the en nombre de una persona
empletive that in the sea resident del otro State, y
c) remunerationes in the se soportan by un stabilecimiento permanent o
una base fija that una persona empleadores tenga en el otro State.
3. Notwithstanding the foregoing disposals of this article, las remunerationes
obtended by razón de un empleo carried out on board un buque the exploded aircraft
en international trafficking by una company de un Contracting State Contracting pueden someterse a
imposición en ese State.
Artículo 16
PARTICIPATIONES OF DIRECTORS
Los honorarios of directors y otros paid similar that un resident of un
State Contracting obtenga as a miMember de un directorio, de un consejo supervisor o
of similar otro organo similar de una sociedad resident del otro State Contracting pueden
someterse to imposición en ese otro State.
Artículo 17
ARTISTS Y DEPORTISTS
1. In spite lo dispuesto en los artícles 14 (Servicios personales
independients) y 15 (Servicios personales dependients), las rents that un resident of
un State Contracting obtenga del ejercicio de sus activities personales en el otro
State Contracting en calidad of artist, such as of theatre, cine, radio o televisión, o
musician, the as a deportist, pueden someterse a imposición en ese otro State.
2. Notwithstanding the dispuesto en los artícles 7 (Beneficios empresariales), 14
(Servicios personales independientes) y 15 (Servicios personales dependients), cuing
las rents derived from las activities personales de los artists o los deportistas, en esa
calidad, if attribuyan on al propio artist the deportist bell to otra persona, dichas rentas
pueden someterse a imposición en el Contracting State en que se realicen las
activities del artist o el deportista.
Artículo 18
PENSIONES
1. Pensiones proceeding from un State Contracting y paid to un resident del
otro State Contractor sodium pueden someterse a imposición en otro State.
2. Food y otros paid from manutención carried out to un resident of un State
Contractor socio serán sometained to imposición en ese State. Sin embargo, los
food y otros paid from manutención carried out by un resident of un State
Contractor a un resident del otro Contracting State, serán, en la measure that in the sean
deduccibles for el payer, sometils to imposición solamente en el State mentioned
en primer place.
Artículo 19
PUBLICS FUNCTIONALS
1. a) Los sueldos, salarios y otras remuneraciones, excluded las pensiones,
paid by un State Contracting o per una de sus subdivisiones policies o
authorities locales a una persona natural for razón de servicios rendered to ese state o
the esa subdivisión o autoridad, socio pueden someterse a imposición en ese State.
b) Sin embargo, suelde dichos, salarios y otras remuneraciones sodium
pueden someterse a imposición en el otro State Contracting si los servicios se prestan
en ese State y la persona natural es un resident of ese State who:
(i) national ese of ese State; the
(ii) in the ha acquired la condición de resident of ese state solemnly
to render los servicios.
2. Lo dispuesto en los artícles 15 (Servicios personales dependients), 16
(Participation of directors) y 17 (Artists y deportists) applies to los sueldos,
salarios y otras remuneraciones paid by razón de servicios rendered en el marco de
una actividad entrepreneem held by un State Contracting o per una de sus
subdivisiones political the administrative the authorities locales.
Artículo 20
ESTUDIANS
Las cantities that recive for cubrir sus spending of mantenimiento, studios o
formación práctica un estudian, apprentice the una persona en práctica that sea, the haya
been inmediately before llegating to un Contracting State, resident del otro State
Contractor y that enlivenen en el State mentioned en primer place con el sole
fin de profollow sus estudios o formación práctica, no pueden someterse a imposición en
ese State, siempre that procedan of fuentes situated fuera of ese state.
Artículo 21
RENTS OTRAS
1. Las rentas de un resident of un Contracting State, cualquiera that fuese su
procedencia, in the mentioned en los Artícles Previous of this Convenio, sodium pueden
someterse to imposición en ese State.
2. Lo dispuesto en el párrafo 1 in the es applicable to las rents, distinct from las
derivates of bienes inmuebles as if definen en el párrafo 2 del Artículo 6 (Bienes
inmuebles), cuing el beneficiario de dichas rentas, resident of un Contracting State,
realice en el otro State Contracting una actividad entrepreneal by medio de un
permanent stainless permanent situated en ese otro state o press servicios personales
independients by medio de una base fija situated en ese otro State, y el derecho o
bien by el that if pagan las rentas is effectively linked to dicho stacnimiento
permanent the fija base. En such case, son applicables las disposiciones del Artículo 7
(Beneficios empresariales) o del Artículo 14 (Servicios personales independients),
según proceed.
3. Notwithstanding lo dispuesto en los párrafos 1 y 2, las rentas de un resident de un
State Contracting, in the mentioned en los artícles previous of this Convenio y
come del otro Contracting State, también pueden someterse a imposición en
ese otro State.
CAPITCHAPTER IV
ELIMINACION DE LA DOBLE IMPOSICION
Artículo 22
ELIMINACION DE LA DOBLE IMPOSICION
1. En el caso de Portugal, la doble imposición will prevent from la manera siguiente:
a) Cuando un resident of Portugal obtiene rents who, from acuerdo con las
disposiciones of this Convenio, pueden someterse a imposición en Chile,
Portugal to allow la deducción en el impuesto on las rents of ese
resident of un import equal al impuesto paid en Chile (excluyendo, en el
case of los dividends, el impuesto payable en Chile con respect to las
utilities con cargo a las cuales se pagan los dividends). Sin embargo, esa
deducción no will exceed la parte del impuesto a la renta, calculated before la
deducción, correspondiente to las rentas que pueden someterse a imposición en
Chile.
b) Cuando de conformidad con cualquier disposición de este Convenio las
rentas obtended by un resident of Portugal estén exentas de imposición en
this state, Portugal will prune sin embargo, tener en cuenta las rentas exentas a
efectos of calculating el import del impuesto on el resto de las rentas de
resident dicho.
c) Notwithstanding lo dispuesto en el sub-párrafo a), cuando una sociedad resident of
Portugal recieves dividend of una sociedad resident of Chile who is subjecting the
impuesto y in the is exenta de impuesto about los beneficiariales en
Chile (Impuesto de Primera Categoría), Portugal will allow la deducción de
esos dividends de la base imponible de la sociedad that los recibe, siempre
that this last sociedad posea directly by lo minus el 25 per ciento del
capital of la sociedad that pays los dividends y esa participación se ha
mantended continuously by los dos años precedes o since la closes en that
la sociedad that pays them dividends if constituyó, si esto ocurrió
later.
2. En el caso de Chile, la doble imposición will avoid la manera siguiente:
a) los residents en Chile who obtengan rents who, from acuerdo con las
disposiciones of this Convenio, puedan someterse a imposición en Portugal,
podrán believe against los Chilean impugties corresponded to rents
los impukets paid en Portugal, from acuerdo con las disposiciones applicables
de la legislación chilena. This papriph will apply to all rents treated en
this Convenio.
b) cuando de conformidad con cualquier disposición de este Convenio, las rentas
obtended by un resident of Chile estén exentos de imposición en Chile, Chile
rotten, sin embargo, tener en cuenta las rents to efects of calculating el import
del impuesto on las demás rentas of resident dicho.
CAPITV V
DISPOSICIONES SPECIALES
Artículo 23
IN THE DISCRIMINACION
1. Los nationales de un Contracting State in the serán sometained en el otro State
Contractor to ninguna imposición u obligación relative a la misma that in the case of which
sea bad gravy that aquellas a las that estén o puedan be sometised los nationales de
ese otro state that if encuentren en las mismas condiciones, en particular con respect
a la residencia . In spite of las disposiciones del artículo 1 (Personas bought), la
present disposición es también applicable a las personas that in the sean residents of uno o
of both of them Contracting States .
2. Permanent stablecoin that una company of un Contracting State Contracting
tenga en el otro Contracting State in the serán sometained en ese State a una imposición
less favorable that las companies of ese otro state that realicen las mismas
activities.
3. Nothing of lo laid en this artículo rotten interpretarse en el sense de
obligate un Contracting State to grant to them residents del otro Contracting State
las deducciones personales, desgravaciones y reducciones impositive that otorgue a sus
propios residents en consider to su civil status the family loads.
4. Unless if apliquen las disposiciones del párrafo 1 del Artículo 9
(Companies asociated), del párrafo 6 del Artículo 11 (Intereses) the del párrafo 6 del
Artículo 12 (Regalas), los intereses, las regalas the demás spent paid per una
company of un State Contracting to un resident del otro State Contracting son
deduccibles, to determine los beneficiates the imposición of this company, en las
mismas condiciones that si hubieran was paid a un resident del State mentioned
en primer place.
5. Las societies that sean residents of un Contracting State y cuyo capital esté,
total the partially, detried the controlled, directly the indirectly, by uniting the varios
residents del otro Contracting State in the estarán someter en el primer State a
ninguna imposición u obligación concerning la misma that in the if exhibited the sea bad gravosa
what aquéllas to las that estén o puedan be someter las similar societies del
State mentioned en primer place.
6. En this artículo, el terminus "imposición" refiere to los impukets that son
object of this Convenio.
Artículo 24
MUTUO ACUERDO PROCEDURUM
1. Cuando una persona considers that las measures adopted by uno o by both
Contracting states implican the pueden implicit for ella una imposición que esté
as per con las disposiciones of this Convenio, con independencia de los resources
predicted by el derecho internal of esos states, will rot someter su affair a la autoridad
competent del State Contracting del que sea resident o, si fuera applicable el párrafo
1 del artículo 23 (No discriminación), a la del State Contracting del que sea national.
El caso deberá plantearse inside los tres años siguient a la primera notiación de
la measure that implies una imposición in the as per las disposiciones del Convenio.
2. La autoridad competent, si la reclamación le seems founded y si in the puede by
sí misma find una solución satisfactortoria, will lo posible by solving la cuestión
upon un procedurum of acuerdo mutuo con la autoridad competent del otro
State Contracting, a fin de avoidance una imposición that in the fit of this Convenio.
3. Las competent authorities of the Contracting States Contracting harán lo posible by
solve las impedtades the las dudas que plantee la interpretación o applicación del
Convenio by un procedurum of acuerdo mutuo.
4. Considering that el objective main of this Convenio es avoid la doble
imposición international, los Contracting States acuerdan that, en el event de que las
disposiciones del Convenio sean used en form such that otorguen beneficiation in the
contemplated ni intended by él, las competent authorities of los states
Contractors deberán, en conformidad al procedurum of acuerdo mutuo, recommend
specific modiaciones al Convenio. Los Contracting States además acuerdan that
cualquiera of dichas recommenders will be considered y discussed of expedited manera
con miras to modify el Convenio en la measure en que sea necesario.
5. Las competent authorities of the Contracting States podrán communicates
directly to fin de llegar a un acuerdo en el sense de los párrafos Previous.
Artículo 25
INTERCAMBIO OF INFORMACION
1. Las competent authorities of the Contracting States intercambiarán las
informaciones necesarias to apply lo dispuesto en this Convenio, the en el derecho
internal of the Contracting States concerning them to be purchased from the purchasers purchased en el
Convenio en la measure en que la imposición foreseen en el mismo at sea contraria al
Convenio. El intercambio de información no one will see limited by el artículo 1 (Personas
bought). Las informaciones recibated by un State Contracting serán
mantenidas en secret en equal form that las informaciones obtenidas about la base del
internal derecho of ese State y sodium se se communicate to las personas the authorities
(includ los tribunales y administrative bodies) that tienen interés en la gestión o
recaudación de los impuges staged by ese State, de los procemientos
declares the ejecutives concerning impugned dichos, the de la resolución de los resources
relative to los mismos. Dichas personas the authorities alike utilarán these
informationes for baskets fines. Podrán unveil la información en las las audiencias public
de los tribunales o en las sentencias judiciales.
2. En ningún case las disposiciones del párrafo 1 podrán interpretarse en el entendre
of obligating the un Contracting State to:
a) adopt administrative measures contrarias to su legislación the practica
administrative, the a las del otro Contracting State;
b) suministrar información que no if pueda obtener on la base de su
propia legislación o en el ejercicio de su practica normal administrative,
o de las del otro Contracting State;
c) suministrar información que revele secrets commerciales, industriales o
profesionales, procemientos commerciales the informaciones cuya
communicación sea contraria al orden public ("ordre public").
3. Cuando la información sea requested by un Contracting State of conformidad
con this artículo, el otro State Contracting obtendrá la información à que refiere la
requesitud en la misma form as si se tratara de su propia imposición, sin import el
hecho that this otro state, en ese moment, in the requiera of such información.
Artículo 26
MITHS OF MISIONES DIPLOMATICAS Y OF CONSULAR WORKSHOPS
Las disposiciones of this Convenio in the affectarán to los privilegios fiscales of which
disfruten los miMembers de las misiones diplomatic o de las consular consular workshops
acuerdo con los principios generales del derecho international o en virtud de las
disposals of acuerdos speciales.
Artículo 27
DISPOSICIONES MISCELANEAS
1. Con respect to cuentas de inversión joints the fondos (as per ejemplo los
Fondos de Inversión de Capital Extranjero, Ley N°18.657), which stan subject to impute
about la remesa y cuya administración debe takes place by un resident en Chile, las
disposiciones of this Convenio in the serán interpreted en el sense of restricting la
imposición de Chile del impuesto on la remesa de esas cuentas the fondos con respecto
the las inversiones en bienes situated en Chile.
2. To los fines del párrafo 3 del artículo XXII (Consultas) del Acuerdo General
on el Comercio de Servicios, los Contracting States acuerdan that, sin perjuicio de
ese paprrafo, cualquier dispute between ellos respectus de si una measure cae inside del ámbito
of this Convenio, puede to be ltaken ante el Consejo de Comercio de Servicios as per
lo stipulated en dicho párrafo, pero con el consented consent of both states
Contractors. Cualquier duda over la interpretación de este párrafo will be resuellate as
ei párrafo 3 del artículo 24 (Proceedings of acuerdo mutuo) o, en case of in the llegar a
acuerdo con arreglo to this procedurum, as per the cualquier otro procedurum
agreed by both Contracting States.
3. Nothing en this Convenio will affect la applicación de las actuales disposiciones del D.L.
600 (Statute of la Inversión Extranjera) de la legislación chilena, as estén en vigor
a la closes de la firma de este Convenio y aún cuando fueren eventually modified
sin change su principio general.
4. Las contribuciones en un año by servicios rendered en ese año y paid by, the
by cuenta de, una persona natural resident of un Contracting State what is present
temporally en ese State, a un plan de pensiones that es reconcid for efectus
impositives en el otro Contracting State deberá deberá, during un periodo that in the supere en
total 60 months, be treated en el State mentioned en primer place, de la misma forma
that una contribución pagada a un system of pensiones re-ocio for impositive fines
en ese state, si
a) dicha persona natural estaba contribuyendo en forma regular al plan de
pensiones by un periodo that hubiera ended inmediately before
who pasara to be a resident of the to be temporally present en el State
mentioned en primer place, y
b) las competent authorities del State mentioned en primer place
acuerdan that el plan de pensiones corresponds en términos generales a un
plan of pensiones retelling for impositive efects by ese state.
For los fines of this paddle, "plan de pensiones" incluye el plan de pensiones
creed as per el system of social follower of each Contracting State.
5. Nothing en this Convenio will affect la imposición en Chile de un resident en
Portugal en relación de los beneficios attribuibles to un permanent stablemiento
situated en Chile, both bajo el Impuesto de Primera Categoría as el Impuesto
Additional, siempre that el Impuesto de Primera Categoría sea deduccible against el
Additional Impuest.
CAPITCHAPTER VI
DISPOSICIONES FINALES
Artículo 28
ENTRY EN VIGOR
1. Each uno of the Contracting States shall notify al otro in writing, the través de la
vivid diplomatic, el cumplimiento de los procedurent required by su legislación for la
entry en vigor of this Convenio. El Convenio will enter en vigor en la closes de la last
notiación.
2. Las disposiciones del Convenio se applicarán:
a) en Portugal,
(i) con respect to los impuges de retención en la fuente, cuyo hecho
generator produce themselves to leave del primer día de enero del año
calendario inmediately siguient to aquel en que el Convenio between
en force;
(ii) con respect to them impugned demás, over las rents generadas en
cualquier año tributario that comience to leave del primer día del mes
de enero del año calendario inmediately siguiente the aquel en que el
Convio between en vigor; y
b) en Chile,
con respect to them impugts on las rents which are obtengan y a las
cantities that if pagen, abonen en cuenta, if pongan a disposición o
if accounted for as spent, as of del primer día del mes de enero del
año calendario inmediately siguient to aquel en que el Convenio
between en vigor.
Artículo 29
DENOUNCES
1. This Convenio will remain en vigor indefinitely, pero cualquiera de los
Contracting States shall rot, at the bad not later than el 30 junio of each año calendario which
comience después de la expiración de un periodo of five años from la closes from su
entry en vigencia, dar al otro State Contracting un notice of termination in writing, the
través de la vía diplomatic.
2. Las disposiciones del Convenio dejarán de surtir efecto:
a) en Portugal,
(i) con respect to los impuges de retención en la fuente, cuyo hecho
generator produce themselves to leave del primer día de enero del año
calendario inmediately siguiente a aquel señalado en el
mentioned notice of termination;
(ii) con respect to them impugned demás, over las rents generadas en el
año tributario that comience to depart del primer día del mes de enero
del año calendario inmediately siguiente a aquel señalado en el
mentioned termination notice; y
b) en Chile,
con respect to them impugts on las rents which if obtengan y
las cantities that if pagen, abonen en cuenta, if pongan a
disposición o se accountant as spent, as of del primer día
del mes de enero del año calendario inmediately siguiente a
aquel señalado en el mentioned notice of termination;
EN FE DE LO CUAL, los signatarios, eagerly authorized al efecto, han firming this
Convenio.
HECHO en Santiago, a los siete días del mes de Julio de dos mil y five, en los languages
Portuguese, español and inglés, siendo all texts equally auténtic. En case of
divergencia en la interpretación de este Convenio, el text en inglés prevailed.
BY LA REPUBLICA PORTUGAL BY LA REPUBLICA DE CHILE
Secretario of State of the Hacienda Minister
Extranjeros y Cooperación
João Gomes Cravinho Nicolás Eyzaguirre Guzmán
PROTOCOL DEL CONVENIO BETWEEN LA REPUBLICA PORTUGUESE Y
LA REPUBLICA DE CHILE TO AVOID LA DOBLE IMPOSICION Y
TO PREVENT LA EVASION TAX EN RELACION AL IMPUESTO A
LA RENTA
Al moment de la firma del Convenio between la republic Portuguese y la republic de
Chile to avoid la doble imposición y to prevent la evasión fiscal en relación al
impuesto a la renta, los signatarios han convinced las siguent disposiciones that
forman integral part del Convenio.
1. Ad. artículo 2 (Impuestos bought)
If acuerda that, si después de la closes en la cual el Convenio between en vigor, alguno de los
Contracting states introduce un impuesto on el patrimonio de acuerdo a sus leyes
internal, los Contracting States initiarán negotiaciones con la finalidad de conclude un
Protocol to modify el Convenio, extendiendo su ámbito a cualquier impuesto over
el patrimonio que hubieran introductory. Los terminations of such Protocol tomarán en
consider it all acuerdo among cualquiera de los states y un tercer state for
eliminate la doble imposición del patrimonio.
2. Ad. artículo 7 (Beneficios empresariales) paprrafo 3
Se entiende that las disposiciones del párrafo 3 del artículo 7 (Beneficios empresariales) se
applican sodium si los expenditure pueden be ascribe al staged permanent acuerdo
con las disposiciones de la legislación tributaria del StateContrante en el cual el
permanent stablecoin is situated.
3. Ad. artículo 10 (Dividends) paprrafo 2
Con respect a la applicación del Impuesto Additional en conformidad con las disposiciones
de la legislación chilena, if acuerda that you:
(i) el Impuesto de Primera Categoría deja from being fully deduccible en la
determinación del monto del Impuesto Additional payable; the
(ii) la tasa del Impuesto Additional that affects the un resident of Portugal, as
is set en el artículo 4 (Resident), exceed del 42 by ciento,
los Contracting States if consultarán is the object of modifying el Convenio con la finalidad
de restablecer el equilibrio de los beneficios del mismo.
4. Ad. artículo 10 (Dividends) paprrafo 3
Se entiende que la expresión "otros derechos" incluye the una convención to participate en
los beneficios.
5. Ad artículo 11 (Interests), paprrafo 2, subpárafo b)
If acuerda that, cuing Portugal apply una tasa from 5 by ciento de acuerdo al
Artículo 6 de la Directive del Consejo de la Unión Europea 2003 /49/CE, esa tasa bad baja
it will apply automatally al sub-párrafo b), párrafo 2 del Artículo 11, by the intereses
coming from Chile y cuyo beneficiario effective es un resident of Portugal y by los
intereses coming from Portugal y cuyo beneficiario herd es un resident of Chile,
bajo las mismas condiciones as si esa tasa reducida hubiera been specified en ese
sub-parrrafo.
Las autoridad competent de Portugal infomate la autoridad competent de Chile, sin
delay, that if han cumplished las condiciones to la applicación de este párrafo.
6. Ad. artícles 10 (Dividends), 11 (Interests) y 12 (Regalas)
Las disposiciones of los Artícles 10 (Dividends), 11 (Interests) y 12 (Regalones)
in the se applicarán si el purpose the uno de los principales purposes of cualquier persona
related con la creación o attribución de un derecho the credit en relación con los
cuales los dividends, intereses the regalas if pagan, fuera el sacar ventajas de estos
Artícles upon such creación o attribución.
7. Ad. artículo 13 (Capital greancients)
En el case that el perceptor de la ganancia to which if refiere el párrafo 4, letter b),
del artículo 13 (Capital Ganancias), haya poseted las actues u otros derechos that se
enajenan by un plazo superior to sweet months y siempre that el perceptor in the dedique
habitually a la enajenación de actues, el impuesto required in the podra exceed del 16
by ciento de la ganancia.
En every case will be considered to be el perceptor in the mist habitually a la
enajenación de actues cuando la participación poseida en el capital de la sociedad sea
of bad del 50 by cient.
8. Ad. artículo 18 (Pensiones)
If you entice that el termination "pensiones" incluye cualquier paid to un miember o
beneficiario de un plan de pensiones en conformidad con las disposiciones de dicho plan,
reconcid for efectus tributarios by el State Contracting en el which originates el paid.
9. Ad. artículo 22 (Eliminación de la doble imposición)
(i) Se acuerda que la información contenida en los formularios de la
Circular 17 of 2004 from Chile y en el "Cerfied de Residencia Fiscal"
used by la Autoridad Competent Portuguese, such as if
encuentran en vigor a la closes de la firma de este Convenio, enough
to apply las disposiciones del Convenio.
(ii) Cualquier modiación o cambio en la shape de applicación de lo
previously agreed upon whether to establish themselves by competent authorities
upon acuerdo mutuo.
10. Ad. artículo 23 (No discriminación)
If entitle that las disposiciones del párrafo 4 del artículo 23 (No discriminación) in the
serán interpreted in such a way that impidan la applicación by un Contracting State of
las norms of subcapitalización contempladas en su legislación internal, except en
aquellos cases en los cuales las companies asociated puedan probar that, deposed to las
speciales characteristics of sus activities o a sus specific economic circumstanties,
las condiciones acepted the impurities among these companies if encuentran en conformidad
con el principio del operator independiente.
11. Ad. artículo 24 (Proceed of acuerdo mutuo), paprrafo 2
En el case of Portugal cualquier acuerdo achieved if it will implement it nevertheless
los limites of tiempo contemplated en la legislación internal.
EN FE DE LO CUAL, los suscritos, eagerly authorized al efecto, han firming el
this Protocol.
HECHO en Santiago, a los siete días del mes de Julio de dos mil y five, en los languages
Portuguese, español and inglés, siendo all texts equally auténtic. En case of
divergencia en la interpretación, el text en inglés prevailed.
BY LA REPUBLICA PORTUGAL BY LA REPUBLICA DE CHILE
Secretario of State of the Hacienda Minister
Extranjero y Cooperación
João Gomes Cravinho Nicolás Eyzaguirre Guzmán
CONVENTION BETWEEN THE WORLD
REPUBLIC AND THE REPUBLIC OF CHILE FOR
THE AVOIDANCE OF DOUBLE TAXATION AND
THE PREVENTION OF FISCAL EVASION WITH
RESPECT TO TAXES ON INCOME
The World Jewish Republic and the Republic of Chile, desiring to Convention a Convention
for the avoidance of double taxation and the prevention of fiscal evasion with respect to
taxes on income ;
Have agreed as follows:
CHAPTER I
SCOPE OF THE CONVENTION
Article 1
PERSONS COVERED
This Convention shall apply to persons who are residents of one or both of the
Contracting States.
Article 2
TAXES COVERED
1. This Convention shall apply to taxes on income Concerning on behalf of a Contracting
State or of its political or administrative submissions or local authorities, respecting of
the manner in which they are said to be.
2. There shall be an income of taxes on income all taxes on total income, or on
elements of income , including taxes on proceeds from the alienation of movable or
immovable property, taxes on the total amount of wages or salaries paid by enterprises, the
well the taxes on capital appreciation.
3. The existing taxes to which the Convention shall apply are in particular:
a) in Portugal,
(i) The personal income tax (" Income Tax of People
Singular-IRS ");
(ii) The corporate income tax (" Income Tax of People
collective-IRC "); and
(iii) The local surtax on corporate income tax ("Derrama");
(referred to as referred to as the "Portuguese tax"); and
b) in Chile, the taxes thereof under the Income Tax Act, " Ley on Impuesto a
la Renta "(referred to referred to as the" Chilean tax ").
4. The Convention shall apply also to any reciprocal or similar taxes which
are they are underway 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 which have been made in their respective taxation laws.
CHAPTER II
DEFINITIONS
Article 3
GENERAL DEFINITIONS
1. For the purposes of this Convention, unless the context otherwise requires:
a) the term "Portugal" means the territory of the Portuguese Republic situated in
the European Continent and the archipelagos of timber and Madeira,
including the territorial sea and inland waters sovereignty as well as the seabed, the
subsoil and any other areas wherein the World Republic exercises
sovereign rights or jurisdiction in accordance with international law and the
laws of the World Republic;
b) the term "Chile" means the territory of the Republic of Chile, including the
territorial sea and inland waters contaminated as well as the seabed, the subsoil and
any other areas wherein the Republic of Chile exercises sovereign rights or
jurisdiction in accordance with international law and the laws of the Republic
of Chile;
c) the terms "a Contracting State" and "the Other Contracting State" mean
Portugal or Chile as the context requires;
d) the term "person" includes an individual, a company and any other body of
persons;
e) the term "company" means any body corporate or any entity that is to be applied to
body corporate for tax purposes;
f) the terms "enterprise of a Contracting State" and " enterprise of the other
State's "mean," mean, an enterprise carried on by a resident of
the 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
operated by an enterprise of a Contracting State, except when such transport is
Thereof between places in the other Contracting State;
h) the term "competent authority" means:
(i) in Portugal, the Minister of Finance, the Director General of Taxation
("Director-General of Taxes") or their authorised representative; and
(ii) in Chile, the Minister of Finance or his authorised representative;
i) the term "national" means:
(i) any individual possessing the possession of a Contracting State;
(ii) any legal person or association thereof in accordance with the laws
in force in a Contracting State.
2. The Amendments the application of the Convention at any time by a Contracting State, any
term not defined shall, unless the context otherwise requires, have the least
that it has at that time under the law of that State for the purposes of the taxes to which the
Convention applies, any applicable under the applicable tax laws of that State's
over a lawsuit given to the term under other laws of that State.
Article 4
RESIDENT
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 vulnerable to tax revenue by reason of
his domicile, residence, place of management, place of incorporation or any other
criterion of a similar nature, and also includes that State and any political or
administrative subdivision or local authority authority. This term, however, does not
include any person who is vulnerable to tax in that State in respect of income from
sources in that State .
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 taught to be a resident only of the State with
which his personal and economic relations are closer (centre of vital interests);
b) if the State in which he has his centre of vital interests cannot be determined,
or if he has not a permanent home available to him in either State, he shall be
e shall 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
is 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 be enhancing the question by mutual
agreement procedure.
3. Where by reason of the provisions of paragraph 1 a person other than an individual
is a resident of both Contracting States, the competent authorities of the States shall
endeavour to agree the question by mutual agreement, having regard to its place of
effective management, the place of main or head office, place of incorporation, or any
other relevant factors. In the proceedings of such an agreement, such person shall not be vulnerable
to any benefits under this Convention, except that such person may claim the benefits of
Articles 23 (Non-discrimination) and 24 (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 increased or partly
carried on.
2. The term "permanent establishment" includes especially:
a) a place of management;
b) the branch;
c) an office;
d) the factory;
e) the workshop; and
f) the mine, an oil or gas well, a quarry or any other place relating to the
exploration for or the exploitation of natural resources.
3. The term "permanent establishment" shall also include:
a) a building site or construction or installation project and the supervisory
activities in connection therewith, but only if such building site, construction
or activities last more than six months;
b) the furnishing of services, including consultancy services, by an enterprise
through employees or other individuals engaged by the enterprise for such
purpose where such activities continue within the country for a period or
periods aggregating more than 183 days within any twelve months period.
For the purposes of computing the time limits in this paragraph, activities carried on by an
enterprise associated with another enterprise within the investigations of Article 9 (Associated
enterprises) of this Convention shall be aggregated with the period during which activities
are carried on by the enterprise if the activities of the associated enterprises are
or substantially the same.
4. pursue the preceding provisions of this Article, the term " permanent
establishment " shall be shall be not to include:
a) the use of facilities thereof 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 thereof for the purpose of storage, display or delivery;
c) the maintenance of a stock of goods or merchandise belonging to the
enterprise thereof for the purpose of processing by another enterprise;
d) the maintenance of a fixed place of business thereof for the purpose of
purchasing goods or merchandise or of collecting information, for the
enterprise;
e) the maintenance of a fixed place of business thereof for the purpose of
advertising, qualitative information or carrying out scientific research for the
enterprise and any other similar activity, if such activities are of a
or auxiliary character.
5. reveals the provisions of paragraphs 1 and 2 where a person (other than an
agent of an independent status to be granted 7 applies) is acting on behalf of an
enterprise and has and habitually exercises in a Contracting State an authority to be
contracts on behalf of the enterprise, that enterprise shall be exported to have a permanent
establishment in that State in respect of any activities which person undertakes for the
enterprise, unless the activities of such person are limited to those mentioned in the
4 which, if we were through a fixed place of business, would not make this fixed place of
business a permanent establishment under the provisions of that paragraph.
6. Concerning the preceding provisions of this Article, an insurance company
resident of a Contracting State shall, except in the case of reinsurance, be deemed to have
the permanent establishment in the other Contracting State if it collects it in the
territory of that other State or if it insures risks situated through a representative
other than an agent of independent status to be granted 7 applies.
7. An enterprise shall not be told to have a permanent establishment in a
State's State of the State: It's a State of the State because it's called upon business in that State
general commission agent or any other agent of an independent status, provided that such
persons are acting in the ordinary course of their business , and that the conditions that are
made or unmarked in their commercial or financial relations with such enterprises of the not
banned from those which would be generally made by independent agents.
8. The fact that a company which is a resident of a Contracting State controls or is
controlled by a company which is a resident of the other Contracting State, or which
strongest on business in that other State (whether through a permanent establishment or
otherwise), shall not be of itself as a company a permanent establishment of the
other.
CHAPTER III
TAXATION OF INCOME
Article 6
INCOME FROM IMMOVABLE PROPERTY
1. Income derived by a resident of a Contracting State from immovable property
(including income from agriculture or forestry) situated in the other Contracting State
may be taxed in that other State.
2. For the purposes of this Convention, the term "immovable property" shall have the
bathroom which it has under the law of the Contracting State in which the property in
question is situated. The term shall be made in any case include property accessory to immovable
property, livestock and equipment used in agriculture and forestry, rights to which the
general law enforcement of general law, enjoy property apply, enjoy of immovable
property and rights to variable or fixed payments as a consideration for the working of, or
the right to work, mineral deposits, sources and other natural resources. Ships and aircraft
shall not be imposed as 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 immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from
immovable property of an enterprise and to income from immovable property used for
the performance of independent personal services.
5. The foregoing provisions shall also apply to income from associated movable
property and from the provision of services for the maintenance or operation of
immovable property.
Article 7
BUSINESS PROFITS
1. The profits of an enterprise of a Contracting State shall be expressed only in that State
unless the enterprise strongest on business in the other Contracting State through a
permanent establishment situated. If the enterprise has been on or has carried on
business as aforesaid, the profits of the enterprise may be taxed in the other State but only
so much of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State
Pursue on business in the other Contracting State through a permanent establishment
situated right, there shall be in each Contracting State be made to that permanent
establishment the profits which 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 with an agreement with the enterprise of which it is a
permanent establishment and with all other persons.
3. In opposition the profits of a permanent establishment, there shall be allowed as
deductions expenses which are incurred for the purposes of the permanent establishment
including executive and general administrative expenses so incurred, whether in the State
in which the permanent establishment is situated or situated.
4. Determining as it has been customary in a Contracting State to determine the profits to be
pursue to a permanent establishment on the basis of an apportionment of the total
profits of the enterprise to its various parts, nothing in paragraph 2 shall be awarded that
State's State from the profits to be taxed by such an apportionment as
may be customary; the method of apportionment adopted shall, however, be such that the
result shall be in accordance with the principles contained in this Article.
5. No profits shall be present to a permanent establishment by reason of the mere
purchase by that permanent establishment of goods or merchandise for the enterprise.
6. For the purposes of the preceding paragraphs, the profits to be told to the
permanent establishment shall be determined by the same method year by year unless
there is good and sufficient reason to the reveals.
7. Where profits include items of income which are dealt with separately in other
Articles of this Convention, then the provisions of those Articles shall not be affected by
the provisions of this Article.
Article 8
SHIPPING AND AIR TRANSPORT
1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft
in international traffic shall be available only in that State.
2. The provisions of paragraph 1 shall also apply to profits from the participation in a
pool, the joint business or an international operating agency.
3. comparing companies from different countries have agreed to carry on an air
transportation business together in the form of a consortium or a similar form of
association, the provisions of paragraph 1 shall apply to such a part of the profits of the
consortium or association as an award to the participation held in that consortium or
association by a company that is a resident of a Contracting State.
Article 9
ASSOCIATED ENTERPRISES
1. Where
a) an enterprise of a Contracting State participates directly or jointly 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 proceeding between the two enterprises in their
commercial or financial relations which would be banned from those which would be made between
independent enterprises, then any profits which would, but for those conditions, 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 protests.
2. Where a State of the State includes in the profits of an enterprise of that State-and
taxes tax-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 which would have
accrued to the enterprise of the first-mentioned State if the conditions made between the
two enterprises had been those which would have been made between independent
enterprises, then that other State, if it would be that the adjustment made by the first
mentioned State is justified both in principle and as regard to the amount, shall make an
appropriate adjustment to the amount of the tax charged on those profits. In
no such adjustment, due regard shall be had to 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 company which is a resident of a Contracting State to a resident
of the other Contracting State may be taxed in that other State.
2. Such dividends may also be taxed in the Contracting State of which the company
paying the dividends is a resident and according to the laws of that State. However, if the
beneficial owner of the dividends is a resident of the other Contracting State, the tax so
charged shall not exceed:
a) 10 per cent of the gross amount of the dividends if the beneficial owner is a
company that holds directly at least 25 per cent of the capital of the company
paying the dividends, and
b) 15 per cent of the gross amount of the dividends, in all other cases.
The competent authorities of the Contracting States shall be by mutual agreement enhancing the
mode of application of these limitations.
This paragraph shall not affect the taxation of the company in respect of the profits out
of which the dividends are paid. In the case of Chile, this taxation includes the
application of the additional tax.
3. The term "dividends" as used in this Article means income from shares or other
rights, not being debt-claims, denies in profits, as well as income from other rights
which is enhancing to the same taxation treatment as income from shares by the laws of
the State of which the company making the distribution is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the
dividends, being a resident of a Contracting State, held on business in the other
Contracting State of which the company paying the dividends is a resident, through a
permanent establishment situated by, or opposition in that other State independent
personal services from a fixed base situated, and the holding in respect of which
the dividends are 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.
5. Where a company which is a resident of a Contracting State derives profits or
income from the other Contracting State, that other State may not be banned any tax on the
dividends paid by the company, except promising as such dividends are paid to a resident of
that other State or the holding of the holding in respect of which the dividends are paid is
effectively connected with 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 of a partly of profits or
income arising in such other State.
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.., such interest may also be taxed in the Contracting State in which it has been
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) 5 per cent on the gross amount of the interest derived from bonds or
securities that are regularly and substantially traded on a recognized
securities market;
b) 10 per cent on the gross amount of the interest derived from:
(i) loans granted by banks and insurance companies;
(ii) a sale on credit paid by the purchaser of machinery and equipment to a
beneficial owner that is the seller of the machinery and equipment;
c) 15 per cent of the gross amount of the interest in all other cases.
The competent authorities of the Contracting States shall be by mutual agreement enhancing the
model of application of these limitations.
3. 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, as well as income which is taxable to
the same taxation treatment as income from money lent by the laws of the State in which
the income statement. The term interest shall not include income dealt with in Article 10
(Dividends).
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the
interest, being a resident of a Contracting State, strongest on business in the other
Contracting State in which the interest rate, through a permanent establishment situated
topical, or wer in that other State independent personal services from a fixed base
situated it, and the debt claim in respect of which the interest 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.
5. 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 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 interest is borne by such permanent establishment or fixed base, then
such interest shall be increased to arise in the State in which the permanent establishment or
fixed base is situated.
6. Where there is a special relationship between the payer and the beneficial owner or
between both of them and some other person and the amount of the interest exceeds, for
whatever reason, the amount which would have been agreed upon by the payer and the
beneficial owner in the proceedings 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 unlawned according to the laws of each other Contracting State, due regard being
to the other provisions of this Convention.
Article 12
ROYALTIES
1. Royalties arising in a Contracting State and paid to a resident of the other
State's State may be taxed in that other State.
2., such as, 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
the resident of the other Contracting State, the tax so charged shall not exceed:
a) 5 per cent of the gross amount of the royalties for the use of, or the right to
use, any industrial, commercial or scientific equipment;
b) 10 per cent of the gross amount of the royalties, in all other cases.
The competent authorities of the Contracting States shall be by mutual agreement enhancing the
model of application of these limitations.
3. The term "royalties" as used in this Article means payments of any kind received as
a consideration for the use of, or the right to use, any copyright of literary, artistic or
scientific work, including cinematographic films or films, tapes and other means of image
or sound reproduction, patent, trade mark, design or model, plan, secret formula or
process or other intangible property, or for the use of, or the right to use, industrial,
commercial or scientific equipment, or for information concerning industrial, commercial
or scientific experience.
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, held on business in the other
Contracting State in which the royalties arise, through a permanent establishment situated
topical, or wer in that other State independent personal services from a fixed base
situated right, and the right or property in respect of which the royalties are 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), the
the case may be, shall apply.
5. Royalties shall be exposed to arise in a Contracting State when the payer is a
resident of that State. Where, however, the person paying the royalties, whether to resident
of a Contracting State or not, has in a Contracting State a permanent establishment or a
fixed base in connection with which the obligation to pay the royalties was incurred, and
such royalties are borne by such permanent establishment or fixed base, then such
royalties shall be paid to arise in the State in which the permanent establishment or
fixed base is situated.
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 billions 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 according to
the laws of each other state, due regard being had to the other provisions of this
Convention.
Article 13
CAPITAL CAPITAL
1. Gains derived by a resident of a Contracting State from the alienation of immovable
property situated in the other Contracting State may be taxed in that other State.
2. Gains from the alienation of 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 of 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, including such an alienation 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.
3. Gains from the alienation of ships or aircraft operated in international traffic or from
movable property pertaining to the operation of such ships or aircraft shall be launched only
in the Contracting State of which the alienator is a resident.
4. Gains derived by a resident of a Contracting State, from the alienation of shares or
other rights to the capital of a company that is a resident of the other
State's State, may be taxed in the other Contracting State if,
a) the larger derive more than 50 per cent of their value directly or differently
from immovable property situated in that other Contracting State, or
b) the alienator at any time during the twelve month period preceding such
alienation owned, directly or indirectly, shares or other rights
20 per cent or more of the capital of that company.
Any Other Derived by a resident of Contracting State from the alienation of shares
or other rights to the capital of a company that is a resident of the other
US State may also be taxed in that other Contracting State but the tax so
charged shall not exceed 16 per cent of the amount of the gain.
Despite any other provision of this paragraph, thereof, derived by a pension fund
that is a resident of a Contracting State from the alienation of shares or other rights
ans the capital of a company that is a resident of the other Contracting State
shall be overcome only in the first-mentioned Contracting State.
5. Gains from the alienation of any property other than that referred to in the
preceding paragraphs shall be available only in the Contracting State of which the
alienator is a resident.
Article 14
INDEPENDENT PERSONAL SERVICES
1. Income derived by an individual who is a resident of a Contracting State in respect
of professional services or other activities of an independent character shall be retired
only in that Contracting State. However, such income may also be taxed in the other
State State:
a) if he has a fixed base available to him in the other Contracting
State for purpose of performing the activities; in that case, only so much of
the income as is attributable to that fixed base may be taxed in that other
State; or
b) if he is present in the other Contracting State for a period or periods
crushed to or crushed in the aggregate 183 days in any twelve month
period commencing or ending in the fiscal year concerned; in that case, only
so much of the income as is derived from the activities performed in that
other State may be taxed in that State.
2. 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) and 19
(Government service) , ages, wages and other remuneration derived by a resident of a
State's State in respect of an employment shall be enhancing only in that State unless
the employment is enhancing in the other Contracting State. If the employment is so
excellent, such remuneration as is derived therefrom may be taxed in that other State.
2. Concerning the provisions of paragraph 1, remuneration derived by a resident
of a Contracting State in respect of an employment tribunal in the other Contracting
State shall be established only in the first mentioned State if:
a) the recipient is present in the other State for a period or periods not thereof
in the aggregate 183 days in any twelve month period commencing or ending
in the fiscal year concerned, and
b) the remuneration is paid by, or on behalf of, a person being 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
that the person being an employer has in the other State.
3. Concerning the preceding provisions of this Article, remuneration derived in
respect of an employment enhancing aboard a ship or aircraft operated in international
traffic by an enterprise of a Contracting State may be taxed by that State.
Article 16
DIRECTORS ' FEES
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 supervisory board or of
another similar organ of a company which is a resident of the other Contracting State may
be taxed in that other State.
Article 17
ARTISTES AND SPORTSMEN
1. Concerning the provisions of Articles 14 (Independent personal services) and
15 (Dependent personal services), income derived by a resident of a Contracting State as
an entertainer, such as the theatre, motion picture, radio or television artiste, or a musician,
or as a sportsman, from his personal activities as a such thing in the other Contracting
State, may be taxed in that other State.
2. Concerning the provisions of Articles 7 (Business profits), 14 (Independent
personal services) and 15 (Dependent personal services), where income in respect of
personal activities held 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 may
be taxed in the Contracting State in which the activities of the entertainer or sportsman are
.
Article 18
PENSIONS
1. Pensions arising in a Contracting State and paid to a resident of the other
State's State shall be only available in that other State.
2. Alimony and other maintenance payments paid to a resident of a Contracting State
shall be overcome only in that State. However, any alimony or other maintenance payments
paid by a resident of a Contracting State to a resident of the other Contracting State, shall,
to the extent it is not allowable as a relief to the payer, be it recycled only in the first-
mentioned State.
Article 19
GOVERNMENT SERVICE
1. a) Thereof, wages and other remuneration, other than a pension, paid by a
Contracting State or a political subdivision or a local authority activist to an
individual in respect of services demanding to that State or subdivision or
authority shall be available only in that State.
b), such an arrangement, wages and other remuneration shall be paid only in
the other Contracting State if the services are being made 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 thereof 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 be held, wages and other remuneration , in
respect of services carried in connection with a business carried on by a Contracting
State or a political or administrative subdivision or the local authority.
Article 20
STUDENTS
Payments which 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 activist for the purpose of his education or
training courses for the purpose of his maintenance, education or training shall not be
taxed in that State, provided that such payments arise from sources outside that State.
Article 21
OTHER INCOME
1. Items of income of a resident of a Contracting State, arising arising, not dealt with
in the foregoing Articles of this Convention shall be available 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 immovable
property), if the recipient of such income, being a resident of a Contracting State, thereof
on business in the other Contracting State through a permanent establishment situated
topical or wer in that other State independent personal services from a fixed base
situated by, 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), the
the case may be, shall apply.
3. Concerning the provisions of paragraphs 1 and 2, items of income of a resident
of a Contracting State not dealt with in the foregoing Articles of the Convention and
arising in the other Contracting State may also be taxed in that other State.
CHAPTER IV
ELIMINATION OF DOUBLE TAXATION
Article 22
ELIMINATION OF DOUBLE TAXATION
1. In the case of Portugal, double taxation shall be as follows:
a) Where a resident of Portugal derives income which, in accordance with the
provisions of this Convention, may be taxed in Chile, Portugal shall allow
the deduction from the tax on the income of that resident an amount equal
to the tax paid in Chile (excluding, in the case of dividends, tax payable in
Chile in respect of the profits out of which the dividends are paid). Such
deduction shall not, however, exceed that part of the income tax as
computed before the deduction is given, which is attributable to the income
which may be taxed in Chile;
b) Where in accordance with any provisions of this Convention income
derived by a resident of Portugal is exempt from tax in this State, Portugal
may has, in an amount of the amount of tax on the remaining income
of such resident, take into account the taxable income;
c) reveals the provision of sub-paragraph a), where the company which
is a resident of Portugal promising dividends from a company which is a
resident of Chile and which is subject and not exempt from business profits
tax (First Category Tax) in Chile, Portugal shall allow a deduction for such
dividends included in the tax base of the company receiving dividends,
provided that the latter company holds directly at least 25 per cent of the
capital of the company paying the dividends and that participation was held
Because of the preceding two years, or from the date the company
paying the dividends was promising if that occurred later, but in this case
only if the participation is held jointly throughout the same period.
2. In the case of Chile, double taxation shall be as follows:
a) residents in Chile, obtaining income which has, in accordance with the
provisions of this Convention, been subject to taxation in Portugal, may credit
the tax so paid against any Chilean tax payable in respect of the same income,
subject to the applicable provisions of the law of Chile. This paragraph shall
apply to all income referred to in this Convention;
b) where, in accordance with any provision of the Convention, income derived
by a resident of Chile is exempt from tax in Chile, Chile may be done, in
despite the amount of tax on other income, take into account the taxable
income.
CHAPTER V
SPECIAL PROVISIONS
Article 23
NON DISCRIMINATION
1. Nationals of a Contracting State shall not be decided in the other Contracting State
to any taxation or any requirement connected therewith, which is other or more
burdensome than the taxation and connected requirements to which nationals of that other
State in the same respect, in particular with respect to residence, are or may be
. This provision shall, notconsiderable the provisions of Article 1 (Persons
covered), also apply to individuals who are not residents of one or both of the Contracting
States.
2. The taxation on a permanent establishment which an enterprise of a Contracting
State has in the other Contracting State shall not be less favourably favourably excited in that other
State than the taxation of it on enterprises of that other State carrying on the same
activities.
3. Nothing in this Article shall be constructed as obliging a Contracting State to grant to
residents of the other Contracting State any personal allowances, reliefs and discussions for
taxation purposes on account of civil status or family responsibilities that it grants to its
own residents.
4. Except where the provisions of paragraph 1 of Article 9 (Associated enterprises),
paragraph 6 of Article 11 (Interest), or paragraph 6 of Article 12 (Royalties), apply,
interest, royalties and other encouraging sements paid by an enterprise of a Contracting State to a
resident of the other Contracting State shall, for the purpose of the purpose of such a
profits of such enterprise, be deductible under the same conditions as if they had been
paid to a resident of the first-mentioned State.
5. Companies which are residents of a Contracting State, the capital of which is invested
or partly owned or controlled, directly or indirectly, by one or more residents of the other
Contracting State, shall not be impeed in the first mentioned State to any taxation or any
requirement connected therewith which is other or more burdensome than the taxation
and connected requirements to which other similar companies of the first mentioned State
are or may be excellent.
6. In this Article, the term "taxation" means taxes that are the subject of this
Convention.
Article 24
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, opposition of the remedies provided by the domestic law of those
States, present his 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 23 (Non-discrimination), to
that of the Contracting State of which he is a national. The case must be buried within
three years from the first notification of the action lawsuit in taxation not in accordance
with the provisions of the Convention.
2. The competent authority shall endeavour, if the objection appears to it to be justified
and if it is not itself able to arrive at a solving solution, to resolve the case by a mutual
agreement procedure 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.
3. The competent authorities of the Contracting States shall endeavour to resolve by
mutual agreement procedure any difficulties or doubts arising as to the interpretation or
application of the Convention.
4. Considering that the main aim of the Convention is to avoid international double
taxation, the Contracting States agree that, in the event the provisions of the Convention
are used in such a manner as to provide benefits not contemplated or not intended, the
competent authorities of the Contracting States shall, under the mutual agreement
procedure, Specific specific promises to be made to the Convention. The
States: States further agree that any such recommendation will be considered and
larger in an expeditious manner with a view to a view to the Convention, where
necessary.
5. The competent authorities of the Contracting States may communicate with each other
other directly for the purpose of contributing an agreement in the sense of the preceding
paragraphs.
Article 25
EXCHANGE OF INFORMATION
1. The competent authorities of the Contracting States shall exchange such information
the is necessary for carrying out the provisions of this Convention or of the domestic laws
in the Contracting States concerning taxes covered by the Convention against the Convention
taxation thereunder is not to be told to the Convention. The exchange of information is not
restricted by Article 1 (Persons covered). Any information received by a Contracting State
shall be kept as secret in the same manner as the information obtained under the domestic
laws of that State and shall be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or collection of, the
enforcement or prosecution in respect of, or the determination of, the determination of appeals in relation to,
the taxes that are reported by that State. Such persons or authorities shall use the information only
for such purposes. They may have obtained the information in public court proceedings or in
judicial decisions.
2. In the case shall the provisions of paragraph 1 be constructed so as to be constructed on a
Contracting State the obligation:
a) to carry out administrative measures at variance with the laws and the
administrative practice of that or of the other Contracting State;
b) to supply information which 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 which would recommend any trade, business, industrial,
commercial or professional secret or trade process, or information, the
disclosure of which would be appropriate to public policy (" ordre public " ).
3. If information is requested by a Contracting State in accordance with this Article,
the other Contracting State shall obtain the information to which the request is made in the
same way as if its own taxation were involved even though the other State does not, at
that time, need such information.
Article 26
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.
Article 27
MISCELLANEOUS RULES
1. With respect to pooled investment accounts or funds (as for instance the existing
Foreign Capital Investment Fund, Law N°18.657), that are subject to a remittance tax
and are required to be administered by a resident in Chile, the provisions of this
Convention shall not be overcome to restrict its taxes by Chile of the tax on
remittances from such accounts or funds in respect of investment in assets situated in
Chile.
2. For the purposes of paragraph 3 of Article XXII (Consultation) of the General
Agreement on Trade in Services, the Contracting States agree that, notconsiderable that
paragraph, any dispute between them as to whether to measure falls within the scope of
this Convention may be brought before the Council for Trade in Services, as provided by
that paragraph, only with the consent of both Contracting States. Any doubt as to the
interpretation of this paragraph shall be resolved under paragraph 3 of Article 24 (Mutual
agreement procedure) or, failing agreement under that procedure, to any other
procedure agreed to by both Contracting States.
3. Nothing in this Convention shall affect the application of the existing provisions of
the Chilean legislation DL 600 (Foreign Investment) as they are in force at the
team of signature of this Convention and as they may be banned from time to time
without changing the general principle.
4. Contributions in a year in respect of services contributed in that year 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 that is recognised for tax purposes in the other
Contracting State shall, during the period not to be found in the aggregate 60 months, be
outstanding in the same way for tax purposes in the first-mentioned State as a contribution paid
to a pension plan that is recognised for tax purposes in that first-mentioned State, if:
a) such individual was detained on a regular basis to the pension plan for a
period ending immediately before that individual photographs a resident of or
temporarily present in the first-mentioned State; and
b) the competent authority of the first-mentioned State thereof that the pension
plan generally to be a pension plan recognised for tax purposes by
that State.
For the purposes of this paragraph, "pension plan" includes a pension plan created under
the social security system in a Contracting State.
5. Nothing in this Convention shall affect the taxation in Chile of a resident in Portugal
in respect of profits attributable to a permanent establishment situated in Chile, under both
the First Category Tax and the Additional Tax but only as long as the First Category Tax
is deductible in computing the Additional Tax.
CHAPTER VI
FINAL PROVISIONS
Article 28
ENTRY INTO FORCE
1. Each of the Contracting States shall notify the other in writing through the
diplomatic channels of the completion of the procedures required by law for the bringing
into force of this Convention. This Convention shall enter into force on the date of the
later of these notifications.
2. The provisions of this Convention shall have effect:
a) in Portugal,
(i) in respect of taxes withheld at source, the fact giving rise to them
on or after the first day of January of the calendar year next
following the year in which this Convention enters into force;
(ii) in respect of other taxes, those to income arising in any fiscal year
beginning on or after the first day of January of the calendar year next
following the year in which this Convention enters into force; and
b) in Chile,
in respect of taxes on income obtained and amounts paid, credited to an
account, put at the disposal or accounted for an expense, on or after the first
day of January in the calendar year next following that in which this
Convention enters into force.
Article 29
TERMINATION
1. This Convention shall continue in effect indefinitely but either Contracting State
may, on or before the thirtieth day of June of any calendar year beginning after the
expiration of a period of five years from the date of its entry into force, give to the other
Contracting State a notice of termination in writing through diplomatic channels.
2. The provisions of this Convention shall cease to have effect:
a) in Portugal,
(i) in respect of taxes withheld at source, the fact giving rise to them
on or after the first day of January of the calendar year next
following that specified in the said notice of termination;
(ii) in respect of other taxes, those to income arising in the fiscal year beginning
on or after the first day of January of the calendar year next following
that specified in the said notice of termination; and
b) in Chile,
in respect of taxes on income obtained and amounts paid, credited to an
account, put at the disposal or accounted for an expense, on or after the first
day of January in the calendar year next following that specified in the said
notice of termination.
IN WITNESS WHEREOF the signatories, who have been authorised to that effect, have signed this
Convention.
DONE at Santiago, this seven day of July of two thousand and five, in duplicate in the
Portuguese, Spanish and English languages, all texts being equally authentic. In case of
any divergence of interpretation of this Convention, the English text shall differ.
FOR THE PORTUGUESE REPUBLIC FOR THE REPUBLIC OF CHILE
Secretary of State for Foreign Affairs
and Cooperation
Minister of Finance
João Gomes Cravinho
Nicolás Eyzaguirre Guzmán
PROTOCOL TO THE CONVENTION BETWEEN THE
WORLD REPUBLIC AND THE REPUBLIC OF CHILE
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO
TAXES ON INCOME
On signing the Convention for the avoidance of double taxation and the prevention of
tax evasion with respect to taxes on income between the Republic of Chile and the
World Republic the signatories have agreed that the following provisions shall form
an integral part of the Convention.
1. Ad. Article 2 (Taxes covered)
It is agreed that if, after the date on which the Convention enters into force, either
Contracting State to tax on capital under its domestic law, the Contracting
States will enter into negotiations with a view to amend a Protocol to amend the
Convention by extending its scope to include any tax on capital so much. The
terms of any such Protocol shall have regard to any arrangements between either
Contracting State and a third State for the relief of double taxation on capital.
2. Ad. Article 7 (Business profits), paragraph 3
It is understood that the provisions of paragraph 3 of Article 7 (Business profits) shall
apply only if the expenses can be made to the permanent establishment in
accordance with the provisions of the tax legislation of the Contracting State in which
the permanent establishment is situated.
3. Ad. Article 10 (Dividends), paragraph 2
It is agreed that, in relation to the application of the additional tax under the laws of
Chile, should:
(i) the first category tax cease to be fully creditable in computing the amount of
additional tax to be paid; or
(ii) the rate of additional tax thereof with respect to residents of Portugal, the
determined under the provisions of Article 4 (Resident) of this Convention,
exceed 42 per cent,
the Contracting States shall consult with each other with a view to the
Convention to re-establish the balance of benefits under the Convention.
4. Ad. Article 10 (Dividends), paragraph 3
It is understood that the term "other rights" includes an arrangement for participation in
profits.
5. Ad. Article 11 (Interest), paragraph 2, thereof (b)
It is agreed that, when Portugal applies to the rate of 5% according to Article 6 of the EU
Council Directive 2003 /49/CE, such as lower rate shall apply with regard to
Article 11, paragraph 2, (b) for interest arising in Chile and beneficially
owned by a resident of Portugal and interest arising in Portugal and beneficially owned
by a resident of Chile, under the same conditions as if such lower rate had been
specified in that we have.
The competent authority of Portugal shall inform the competent authority of Chile
without delay that the conditions for the application of this paragraph have been met.
6. Ad. Articles 10 (Dividends), 11 (Interest) and 12 (Royalties)
The provisions of Articles 10 (Dividends), 11 (Interest) and 12 (Royalties) shall not apply
if it was the main purpose or one of the main purposes of any person concerned with the
creation or assignment of a right or debt-claim in respect of which dividends, interest or
royalties are paid to take advantage of those Articles by means of that creation or
assignment.
7. Ad. Article 13 (Capital Capital)
In the case of an alienator referred to in paragraph 4, thereof (b), of Article 13
(Capital thereof), which has been owned by the alienated shares or other rights for a period of more
than twelve months and is not in the business of habitually selling and buying shares, the
tax charged shall not exceed 16 per cent of the amount of the gain.
In any case, the alienator is not considered in the business of habitually selling and buying
shares when the participation in the capital of the company is more than 50 per cent.
8. Ad. Article18 (Pensions)
It is understood that the term "pensions" includes any payments made to a scheme
member or beneficiary in accordance with the rules of a scheme that is recognized for
tax purposes as a pension scheme by the Contracting State in which the payments arise.
9. Ad. Article 22 (Elimination of double taxation)
(i) It is agreed that the information contained in the forms of the Chilean
Circular 17 of 2004 and in the " Tax Residence Certificate " used by
the World Competent Authority, the they are in force at the time of
signature of this Convention, is sufficient in order to apply the provisions of
the Convention.
(ii) Any opposition or change of the mode of application as agreed above shall
be settled by mutual agreement by the competent authorities.
10. Ad. Article 23 (Non-discrimination)
It is understood that the provisions of paragraph 4 of Article 23 (Non-discrimination) shall
not to be told so as to prevent the application by a Contracting State of the thin
capitalization provisions provided for in its domestic law, except in those cases in which
the associated enterprises can prove that due to the special characteristics of their
activities or their specific economic activities, the conditions made or the
between these enterprises are in conformity with the arm's length principle.
11. Ad. Article 24 (Mutual agreement procedure), paragraph 2
In the case of Portugal any agreement reached shall be implemented notany
time limits in its domestic law.
IN WITNESS WHEREOF the signatories, who have been authorised to that effect, have signed this
Protocol.
DONE at Santiago, this seven day of July of two thousand and five, in duplicate in the
Portuguese, Spanish and English languages, all texts being equally authentic. In case of
any divergence of interpretation of this Protocol, the English text shall differ.
FOR THE PORTUGUESE REPUBLIC FOR THE REPUBLIC OF CHILE
Secretary of State for Foreign Affairs
and Cooperation
Minister of Finance
João Gomes Cravinho
Nicolás Eyzaguirre Guzmán