Approves The Convention Between The Portuguese Republic And The Republic Of Chile For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income

Original Language Title: Aprova a Convenção entre a República Portuguesa e a República do Chile para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277636a49304c5667755a47396a&fich=ppr24-X.doc&Inline=false

MOTION for a RESOLUTION paragraph 24/X given that this Convention will allow fundamentally avoid double taxation of different categories of income earned by residents in any of the Contracting States; Whereas the Convention establishes rules that circumscribe the jurisdiction of each State to tax income, in particular those derived from real estate, business activities, dividends, interest, royalties, income from employment and pensions; Given that its term will contribute to creating a more stable and transparent fiscal framework for investors of both States and to that extent influence positively the development of capital flows; So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following resolution: to approve the Convention between the Portuguese Republic and the Republic of Chile for the avoidance of double taxation and the prevention of Fiscal evasion with respect to taxes on income, signed at Santiago, July 7 2005 , whose text, authenticated versions in Portuguese, Spanish and English, if published in the annex.

Seen and approved by the Council of Ministers of 12 August 2005.

The Prime Minister, the Minister of Parliamentary Affairs Minister Presidency CONVENTION BETWEEN the Portuguese 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 Portuguese Republic and the Republic of Chile, desiring to conclude 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 imposed on behalf of each Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the system used for the collection.

2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

3. The existing taxes to which this Convention shall apply are in particular: a) In Portugal: (i) the personal income tax (IRS); (ii) the corporate income tax (IRC); and (iii) the Spill; (hereinafter referred to as «Portuguese tax»); and (b)) In Chile, the tax payable under the income tax Act, ' Ley on Impuesto a la Renta» (hereinafter referred to as «Chilean tax»).

4. The Convention shall apply also to any identical taxes or substantially similar coming into force after the date of signature of the Convention in addition to the current or to replace them. The competent authorities of the Contracting States shall notify each other of significant changes introduced in the respective tax 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 the Azores and Madeira, including its territorial sea and the internal waters and the seabed, the subsoil and any other areas where the Portuguese Republic exercises sovereign rights or jurisdiction in accordance with international law and the laws of the Republic of Portugal; (b)) the term «Chile» means the territory of the Republic of Chile, including its territorial sea and the internal waters and the seabed, the subsoil and any other areas where the Republic of Chile shall exercise 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 group of people; and) the term «company» means any body corporate or any entity which is treated as a body corporate for tax purposes; f) the terms «enterprise of a Contracting State» and «enterprise of the other Contracting State» mean respectively an enterprise carried on by a resident of a Contracting 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 carriage is carried out solely between places in the other Contracting State; h) the term "competent authority" means: (i) in Portugal, the Minister of finance, the Director-General of taxes or their 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 Contracting State; (ii) any legal person or association constituted in accordance with the legislation in force in a Contracting State.

2. As regards the application of the Convention, at any given moment, by a Contracting State, any term not defined therein shall have, unless the context otherwise requires, the meaning is assigned at that time under the law of that State governing the taxes to which the Convention applies, the resulting interpretation of fiscal legislation about the consequence of other legislation 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 liable to tax therein 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 its political or administrative subdivisions or local authorities. However, this term does not include any person who is subject to tax in that State in respect only of income sources located in that State.

2. where, by virtue of the provisions of paragraph 1, an individual is a resident of both Contracting States, the situation will be resolved as follows: a) 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 deemed to be a resident only of the State with which are narrower personal and economic relations (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 deemed to 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 deemed to be a resident only of the State of which he is a national; d) If is a national of both States or of neither of them, the national competent authorities of the Contracting States will resolve the case by mutual agreement.

3. When, in virtue of the provisions of paragraph 1, a person other than a natural person, resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to settle the question by mutual agreement, taking into account the location of their place of effective management of the head office or registered office of the Constitution or any other relevant factors. In the absence of such agreement, the person concerned cannot benefit from the provisions of this Convention, subject to which such person may apply for the benefits provided for in 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 installation through which the company carries out all or part of its activity.

2. the term «permanent establishment» includes, in particular: a) a place of management; 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 connected with the exploration or exploitation of natural resources.

3. the term «permanent establishment» includes: a) a building site or a construction project or installation, as well as related oversight activities, but only if its duration exceeds 6 months; (b)) the provision of services, including consultancy services, by an enterprise through employees or other personnel hired by the company for this purpose, when such activities are carried on in the country for a period or periods aggregating more than 183 days in any period of 12 months.


For the purpose of calculating the time limits provided for in this paragraph, activities carried on by an enterprise associated with another enterprise, in accordance with the provisions of article 9 (associated enterprises) of this Convention, shall be added to the period during which activities are carried on by the company, provided that the activities of the company are identical or substantially similar.

4. Notwithstanding the preceding provisions of this article, the term «permanent establishment» does not cover: a) the premises used solely for the purpose of storage, display or delivery goods or merchandise belonging to the enterprise; b) the maintenance of a stock of goods or merchandise belonging to the enterprise, solely for the purpose of storage, display or delivery; c) a stock of goods or merchandise belonging to the enterprise, solely for processing by another enterprise; d) a fixed installation maintained solely to purchase goods or goods or gather information for the company; and) a fixed installation maintained solely for advertising, provide information or conduct scientific research for the company, as well as any similar activity, provided such activities are of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person-other than an agent of an independent status, to whom paragraph 7 applies – acts on behalf of a company and stop and usually performs in a Contracting State powers to enter into contracts on behalf of the company, it is considered that this company has a permanent establishment in that State, in respect of any activities which that person performs for the company unless that person's activities are limited to those mentioned in paragraph 4 which, if exercised through a fixed installation, would not consider that fixed installation as a fixed establishment in accordance with the provisions of that paragraph.

6. Notwithstanding the preceding provisions of this article, an insurance company resident of a Contracting State, with the exception of reinsurance, have a permanent establishment in the other Contracting State where, through a representative who is not considered an independent agent in accordance with paragraph 7, receive prizes in the territory of that other State or hold risks situated in that territory.

7. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, General Commission 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 accepted or imposed commercial or financial relations with these companies do not differ from those which would normally be established by independent agents.

8. The fact that a company which is a resident of a Contracting State control or be controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise) is not, by itself, enough to make either of these societies 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 meaning is assigned by the law of the Contracting State in which such goods are located. The term shall accessories, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property law of immovable property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right of exploitation of the work, mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded as immovable property.

3. paragraph 1 shall apply to income derived from the direct use, letting or any other form of use of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to income from a real estate company and real estate income used for the exercise of independent professions.

5. The foregoing provisions shall also apply to income from movable property associated with real estate and the services are intended for the maintenance or operation.

Article 7 CORPORATE EARNINGS 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries or has carried on business in this way, their profits may be taxed in the other State, but only insofar as they are attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, shall be charged, in each Contracting State, to that permanent establishment the profits that this would get if it were a distinct and separate enterprise that they exercised the same activities or similar activities under the same conditions or in similar conditions, and treated with absolute independence with the company of which it is a permanent establishment and with any other person.

3. In determining the profits of a permanent establishment is allowed to deduct the expenses that have been made to achieve the purpose pursued by that permanent establishment, including the costs of management and administration, general expenses incurred with the order referred to, whether in the State in which the permanent establishment is situated outside him.

4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, the provisions of paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, lead to a result in accordance with the principles laid down in this Article.

5. No profits shall be attributed to a permanent establishment by the fact that the simple purchase of goods or merchandise, by that permanent establishment, to the company.

6. For the purposes of the preceding paragraphs, the profits to be charged to the permanent establishment shall be determined each year, according to the same method, unless there are valid and sufficient reasons to proceed differently.

7. When profits understand elements of income covered separately by other articles of this Convention, its provisions will not be affected by this article. Article 8 SHIPPING and air transport 1. The profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.

2. paragraph 1 shall apply equally to profits from the participation in a pool, on a holding in common or in an international operating agency.

3. When companies from different countries have agreed to carry out air transport activities in the form of a consortium or similar association, the provisions of paragraph 1 shall apply to the share of the profits of the Consortium or association that corresponds to the participation held in that consortium or association by a company which is a resident of a Contracting State.

Article 9 ASSOCIATED ENTERPRISES 1. When the) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b)) the same people 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 both cases, the two enterprises in their commercial or financial relations accepted or imposed conditions which differ from those which would be made between independent enterprises , the profits, if there were no such conditions, would have been obtained by one of the companies, but were not because of these conditions, can be included in the profits of that enterprise and taxed accordingly.

2. where a Contracting State includes in the profits of an enterprise of that State – and tribute accordingly – profits on which an enterprise of the other Contracting State has been taxed in that other State and the profits included thus constitute profits which would have been obtained by the company in the first mentioned State if the conditions agreed between the two companies had been the conditions that would have been made between independent enterprises , that other State, if you agree that the adjustment made by the first-mentioned State is justified both in principle and in terms of its amount, shall appropriate adjustment amount of tax charged therein on those profits. In determining this adjustment shall be taken into consideration other provisions of this Convention and the competent authorities of the Contracting States shall consult each other if necessary.

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 is a resident that pays dividends, 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% of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 25% of the share capital of the company paying the dividends; and b) 15% of the gross amount of the dividends, in all other cases.

The competent authorities of the Contracting States shall, by common accord, to implement these limits.

This paragraph shall not affect the taxation of company 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, participating in profits, as well as income from other rights which are subject to the same tax treatment of income from shares by the laws of the State of which he is 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, resident of a Contracting State, exercise activity in the other Contracting State of which the company is a resident that pays dividends, through a permanent establishment situated therein, or carry on in that other State independent profession, by means of a fixed installation located there , and in respect of which the dividends are paid is effectively connected with that permanent establishment or fixed base. In this case, the provisions of article 7 (business profits) or article 14 (independent professions), as the case may be.

5. where a company which is a resident of a Contracting State to obtain profits or income from the other Contracting State, that other State may not require any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the contribution 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 wholly or partly on profits or income of that 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. However, such interest 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 interest is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5% of the gross amount of the interest derived from obligations or regular titles and substantially traded on a recognized securities market; b) 10% of the gross amount of the interest arising from: (i) loans granted by banks or insurance companies; (ii) the sale on credit, paid by the purchaser of machinery and equipment to a beneficial owner that is the seller of machinery and equipment;

c) 15% of the gross amount of the interest, in all other cases.

The competent authorities of the Contracting States shall, by common accord, to implement these limits.

3. the term «interest» as used in this article means income from debt-claims of every kind, whether or not secured by mortgage, and income from government securities and other securities, as well as the earnings that are subject to the same tax treatment of income from loans according to the legislation of the State in which the income. The term «interest» comprises the income not covered by the provisions of article 10 (dividends).

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, resident of a Contracting State, exercise activity in the other Contracting State in which the interest, through a permanent establishment situated therein, or carry on in that other State independent profession, by means of a fixed installation located there, and the claim in respect of which the interest is paid is effectively connected with that permanent establishment or fixed base. In this case, the provisions of article 7 (business profits) or article 14 (independent professions), as the case may be.

5. interest shall be deemed to arise in a Contracting State when the borrower is a resident of that State. However, when the debtor interest, whether or not resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation has been contracted by which interest is paid and that permanent establishment or that fixed installation support the payment of interest, such interest shall be deemed to be from the State in which the permanent establishment or the fixed base are located.

6. When, because of the special relations that exist between the debtor and the beneficial owner or between both of them and any other person, the amount of the interest exceeds, for whatever reason, the amount which would have been agreed between the debtor and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In that case, the excess can continue to be taxed in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

Article 12 ROYALTIES 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, 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 resident of the other Contracting State, the tax so charged shall not exceed: a) 5% of the gross amount of the royalties relating to the use or the granting of the use of any industrial equipment , commercial or scientific; b) 10% of the gross amount of the royalties in all other cases. The competent authorities of the Contracting States shall, by common accord, to implement these limits.

3. The term «royalties» as used in this article means payments of any kind received by way of remuneration for the use of, or the right to use a copyright in a literary, artistic or scientific work including cinematograph films, as well as the films, recordings or any other means of image or sound reproduction, patent , of a trade mark, or, a drawing or a model, a plan, a secret formula or process or other intangible property, as well as by the use of, or the right to the use of an industrial, commercial or scientific equipment, or for information concerning an experience 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, exercise activity in the other Contracting State in which the royalties, through a permanent establishment situated therein, or carry on in that other State independent profession, by means of a fixed installation located there, and the right or property in respect of which the royalties are paid is effectively connected with that permanent establishment or fixed installation. In this case, the provisions of article 7 (business profits) or article 14 (independent professions), as the case may be.

5. royalties shall be deemed to arise in a Contracting State when the borrower is a resident of that State. However, when the debtor of royalties, whether or not resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation has been contracted for which royalties are payable, and that permanent establishment or that fixed installation support payment of these royalties, such royalties are considered from the State in which the permanent establishment or the fixed base are located.

6. When, because of the special relations that exist between the debtor and the beneficial owner or between both of them and any 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 between the debtor and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In that case, the excess can continue to be taxed in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

Article 13 capital gains 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 assets 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 of a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, including gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed installation , may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State of which the alienator is a resident.

4. Gains derived by a resident of a Contracting State to obtain the alienation of shares or other rights representing the capital of a company which is a resident of the other Contracting State, may be taxed in the other Contracting State, provided that the) gains from the alienation of shares whose value resulting, directly or indirectly, more than 50%, of immovable property situated in that other Contracting State; or (b)) the alienator has held, at any time during the period of 12 months preceding the transfer, directly or indirectly, shares or other rights representing 20% or more of the capital of that company.

Any other gains derived by a resident of a Contracting State by the alienation of shares or other rights representing the capital of a company which is a resident of the other Contracting State may also be taxed in that other Contracting State, but the tax so charged shall not exceed 16% of the amount of the gain.

Notwithstanding any other provision of this paragraph, gains derived by a resident of a Contracting State pension, and from the alienation of shares or other rights representing the capital of a company which is a resident of the other Contracting State shall be taxable only in the first Contracting State mentioned.

5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 INDEPENDENT PROFESSIONS 1. Income derived by an individual who is resident of a Contracting State to exercise a profession or other activities of an independent character shall be taxable only in that State, however, such income may also be taxed in the other Contracting State: a) if that person has, as usual, in the other Contracting State of a fixed installation for the performance of their activities; in this case, can only be taxed in the other Contracting State the portion of income that is attributable to that fixed base; or b) if that person stay in the other Contracting State for a period or periods exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; in this case, can only be taxed in the other State the share of income derived from activities performed in that other 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 PROFESSIONS 1. Subject to the provisions of articles 16 (directors ' fees), 18 (pensions) and 19 (Government service), salaries, wages and other remuneration obtained from a job by a resident of a Contracting State shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the job is there, the corresponding payments may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a) the beneficiary stay in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; and (b)) are paid remuneration for an employer or on behalf of 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 which the employer has in the other State.

3. Notwithstanding the preceding provisions of this article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in 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, the 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. Notwithstanding the provisions of articles 14 (independent professions) and 15 (dependent Professions), income derived by a resident of a Contracting State in his capacity as entertainer, as artist of theatre, film, radio or television, or a musician, or as a sportsman, from his personal activities as such exercised, in that capacity, in the other Contracting State, may be taxed in that other State.

2. Notwithstanding the provisions of articles 7 (business profits), 14 (independent professions) and 15 (dependent Professions), income from activities pursued personally by an entertainer or sportsman, in that capacity, assigned to another person, may be taxed in the Contracting State in which these activities are exercised shows or professional athletes.

Article 18 PENSIONS 1. Pensions arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. The maintenance and other subsistence allowances paid to a resident of a Contracting State shall be taxable only in that State. However, the alimony and other maintenance payments paid by a resident of a Contracting State to a resident of the other Contracting State, shall be taxable only in the first-mentioned State, to the extent that the payer is not entitled to the deduction.

Article 19 GOVERNMENT SERVICE 1. a) salaries, wages and other remuneration, other than a pension, paid by a Contracting State or a political or administrative subdivision or local authority to an individual as a result of services rendered to that State or subdivision or authority shall be taxable only in that State. b) salaries, wages and other remuneration can only, however, be taxed in the other Contracting State if the services are rendered in that State and the individual is a resident of that State: (i) being its nationals; or (ii) did not become its resident solely for the purpose of providing these services.

2. articles 15 (dependent Professions), 16 (directors ' fees) and 17 (Artistes and Athletes) shall apply to salaries, wages and other remuneration, paid as a result of services rendered in connection with a commercial or industrial activity carried on by a Contracting State or a political or administrative subdivision or local authority. Article 20 STUDENTS The importance that a student, an apprentice or a trainee who is or was immediately before his tenure in a Contracting State a resident of the other Contracting State, and whose permanence in the first State mentioned has as sole purpose their education or training, receives to make ends meet with their livelihood, education or training shall not be taxed in that State provided that originate from sources outside that State.

Article 21 OTHER INCOME 1. The elements of income of a resident of a Contracting State, wherever arising, not covered by the preceding articles of this Convention shall be taxable only in that State.

2. 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, resident of a Contracting State, exercise activity in the other Contracting State through a permanent establishment situated therein or carry on in that other State independent profession through a fixed base situated therein , and the right or property in respect of which the income is paid, actually attached to that permanent establishment or fixed base. In this case, the provisions of article 7 (business profits) or article 14 (independent professions), as the case may be.

3. Notwithstanding the provisions of paragraphs 1 and 2, the elements of income of a resident of a Contracting State, not covered by the preceding articles of this 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 eliminated as follows: where a resident of Portugal) obtains income which, in accordance with the provisions of this Convention, may be taxed in Chile, Portugal shall deduct the tax on the income of that resident an amount equal to the tax paid in Chile (excluding, in the case of dividends, the tax chargeable in Chile in relation to the profits of which the dividends are paid). Such deduction shall not, however, exceed that part of the income tax, computed before the deduction is given, which is attributable to the income which may be taxed in Chile; b) When, in accordance with the provisions of this Convention, income derived by a resident of Portugal are exempt from tax in this State, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income; c) Notwithstanding the provisions of subparagraph (a)), when a company which is a resident of Portugal receives dividends from a resident company of Chile, and which is subject and not exempt from corporate profits tax (First Category tax) in Chile, Portugal will allow the deduction of dividends included in the tax base of the receiving society, since the latter company holds directly at least 25% of the share capital of the company paying the dividends and that participation has been held uninterrupted during the two preceding years, or since the date of incorporation of the company paying the dividends, if has occurred later, but in this case only if the participation is held continuously for the same time period.

2. in the case of Chile, double taxation shall be eliminated as follows: a) residents in Chile which obtain income which, in accordance with the provisions of this Convention, have been subject to taxation in Portugal, may allocate the tax paid in this way in the Chilean tax due in respect of the same income, subject to the relevant provisions of the legislation of Chile. The provisions of this paragraph shall apply to all income referred to in this Convention; b) When, in accordance with the provisions of this Convention, income derived by a resident of Chile are exempt from tax in Chile, Chile may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

Chapter V SPECIAL PROVISIONS article 23 NON-DISCRIMINATION 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation to which they may be subjected or nationals of that other State if they are in the same circumstances, in particular with regard to residence. Notwithstanding the provisions of article 1 (persons concerned), this provision will also apply to persons 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 favourable in that other State than the enterprises of that other State carrying on the same activities. 3. This article shall not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State personal deductions, rebates and reductions for taxation purposes allocated on the basis of marital status or family expenses granted to its own residents.

4. except where applicable the provisions of paragraph 1 of article 9 (associated enterprises), paragraph 6 of article 11 (interest) or paragraph 6 of article 12 (Royalties), interest, royalties and other amounts paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the purpose of determining the taxable profits of such company under the same conditions as if they were paid to a resident of the first-mentioned State.

5. The resident enterprises of a Contracting State whose capital, in whole or in part, directly or indirectly, be held or controlled by one or more residents of the other Contracting State shall not be subjected in the first mentioned State, to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation to which they are or may be subject to similar enterprises of that first-mentioned State.

6. In this article the term "taxation" means taxes which are the subject of this Convention.

Article 24 MUTUAL AGREEMENT PROCEDURE 1. When a person considers that the action taken by a Contracting State or both Contracting States result or may result, in respect of themselves, the taxation not in accordance with the provisions of this Convention, it may, irrespective of the resources established by the national law of those States, submit his case to the competent authority of the Contracting State of which he is a resident or If your case is understood in paragraph 1 of article 23 (non-discrimination), the competent authority of the Contracting State of which he is a national. The case must be presented within three years from the date of the first communication from the measure that goes about the taxation not in accordance with the provisions of the Convention.

2. The competent authority, if the complaint if you appear founded and is unable to give a satisfactory solution, it will endeavour to resolve the matter by mutual agreement with the competent authority of the other Contracting State, in order to avoid the taxation not in accordance with the Convention.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts, that might give rise to interpretation or application of the Convention.

4. Considering that the main objective of the Convention is to avoid international double taxation, the Contracting States agree that, in the case of the provisions of the Convention be used in such a way which grant benefits not covered nor intended, the competent authorities of the Contracting States shall recommend, under the mutual agreement procedure, specific changes to be made to the Convention. The Contracting States agree also that a recommendation in these terms shall be assessed and discussed expeditiously with a view to amending the Convention, when necessary.

5. The competent authorities of the Contracting States may communicate directly with one another in order to reach an agreement on the terms indicated in the preceding paragraphs.

Article 25 EXCHANGE of INFORMATION 1. The competent authorities of the Contracting States shall exchange the information necessary to apply the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation envisaged therein is not contrary to the provisions of this Convention. The exchange of information is not restricted by article 1 (persons concerned). The information received by a Contracting State shall be treated as secret in the same manner as information obtained based on the domestic legislation of that State, and may only be communicated to the persons or authorities (including courts and administrative authorities) responsible for settlement or recovery of taxes required by this State, or declarative or executive procedures relating to these taxes, or of the decision concerning these resource taxes. Such persons or authorities shall use the information obtained solely for the purposes referred to. This information may be disclosed during public hearings or tribunals in judicial decisions.

2. paragraph 1 shall not be interpreted to impose on a Contracting State the obligation: a) administrative measures contrary to its legislation and its administrative practice or of the other Contracting State; b) provide information that cannot be obtained on the basis of its legislation or in the course of his normal administrative practice or of the other Contracting State; c) supply information which would disclose any secrets or trade processes, industrial or professional, or information, the disclosure would be contrary to public policy ordre public.

3. If a Contracting State requesting information pursuant to this article, the other Contracting State shall obtain the information requested in the same way you would if you were in their own taxation, even if that other State does not, at that time, of such information.

Article 26 MEMBERS of DIPLOMATIC MISSIONS and CONSULAR POSTS the provisions of this Convention shall not prejudice the tax privileges of benefiting the members of diplomatic missions or consular posts under the General rules of international law or provisions of special agreements. Article 27 OTHER PROVISIONS 1. With regard to funds or common investment accounts [pooled investment accounts or funds] (as, for example, the Foreign Capital Investment Fund, law No. 18,657), subject to tax on remittances and which competes the a resident in Chile, the provisions of this Convention shall not be interpreted in the sense of restricting the imposition by Chile of the remittance tax from those accounts or funds in connection with investments in assets located in Chile.


2. For the purposes of paragraph 3 of article XXII (consultation) of the GATS – general agreement on trade in services, the Contracting States agree that, notwithstanding that provision, any dispute arises as to whether a measure falls within the scope of this Convention may only be submitted to the Council for trade in services as provided for in the said paragraph, upon the consent of both Contracting States. Any doubt as to the interpretation of this provision shall be resolved in accordance with the provisions of paragraph 3 of article 24 (mutual agreement procedure) or, failing agreement under that procedure, pursuant to any other procedure that may be agreed by both Contracting States.

3. The provisions of this Convention shall not affect the application of existing provisions of Chilean legislation DL 600 (status of foreign investment) in effect on the date of signature of this Convention and any amendments that may be introduced later, as long as you don't change your general principle.

4. The contributions made in a given year, for services rendered in that year paid by, or on behalf of, a natural person who is a resident of a Contracting State or which remains temporarily in that State, to a pension fund recognized for tax purposes in the other Contracting State shall be treated for tax purposes in the first-mentioned State for a period not exceeding in the aggregate 60 months , in the same manner as contributions to a pension fund recognized for tax purposes in that first-mentioned State, if: a) the person concerned has contributed regularly to the Pension Fund for a period of time it ended immediately before that person became a resident of the first-mentioned State or remain there temporarily; and (b)) the competent authority of the first-mentioned State agrees that the Pension Fund correspond, in General, a pension fund recognized for tax purposes by that State.

For the purposes of this paragraph, the term ' pension fund ' includes a pension fund created under the social security scheme of a Contracting State.

5. The provisions of this Convention shall not affect the taxation in Chile of a resident of Portugal, in respect of profits attributable to a permanent establishment situated in Chile, with regard to both the First Category tax and the additional tax, but only if the First Category tax is deductible in computing the additional tax.

CHAPTER VI FINAL PROVISIONS article 28 ENTRY INTO FORCE 1. The Contracting States shall notify each other in writing, through diplomatic channels, the completion of the procedures required by the relevant legislation concerning the entry into force of this Convention. This Convention shall enter into force on the date of the last of such notifications.

2. The provisions of this Convention shall be applicable: a) In Portugal: (i) in respect of taxes withheld at source, the fact giving rise to them appearing on or after 1 January in the calendar year next following the entry into force of this Convention; (ii) in respect of other taxes, as to income arising in any fiscal year beginning on or after 1 January in the calendar year next following the entry into force of this Convention; and (b)) In Chile: in respect of taxes on income and on the amounts paid, credited into account, placed at the disposal or accounted for as expense, on or after 1 January in the calendar year next following the entry into force of this Convention.

Article 29 DENUNCIATION 1. This Convention shall remain in force for an indefinite period of time, but any one of the Contracting States may send to the other Contracting State a notice of termination in writing through diplomatic channels, on or before June 30 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 have effect: a In Portugal): (i) in respect of taxes withheld at source, the fact giving rise to them appearing on or after 1 January in the calendar year next following that specified in the said notice of termination; (ii) in respect of other taxes, as to income arising in the fiscal year beginning on or after 1 January in the calendar year next following that specified in the said notice of termination;

b) In Chile: in respect of taxes on income and on the amounts paid, credited into account, placed at the disposal or accounted for as expense, on or after 1 January in the calendar year next following that specified in the said notice of termination.

In witness whereof the undersigned, being duly authorised thereto, have signed this Convention.

DONE in SANTIAGO, the seven days of the month of July 2005, in duplicate, in the Portuguese, Spanish and English languages, each text being equally valid. In case of divergence of interpretation of this Convention, the English text shall prevail.

For the PORTUGUESE REPUBLIC for the REPUBLIC of CHILE, Secretary of State for Foreign Affairs and cooperation Joao Gomes Cravinho Finance Minister Nicolas Eyzaguirre Guzman Protocol to the Convention between the Portuguese Republic and the Republic of CHILE for the avoidance of double taxation and the prevention of FISCAL evasion with respect to taxes on income at the time of signing the Convention between the Portuguese 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 undersigned have agreed upon the following provisions, which shall form an integral part of the Convention.

1. Ad article 2 (taxes covered) If, after the date of entry into force of the Convention, a Contracting State to introduce a tax on the assets under its internal legislation, it is agreed that the Contracting States will hold negotiations with a view to concluding a protocol of amendment to the Convention, in the sense of extending its scope to understand any tax on capital that is introduced. The terms of that Protocol should take into account the agreements between each of the Contracting States and third States regarding the Elimination of double taxation of heritage.

2. Ad article 7, paragraph 3 (corporate earnings) it is understood that the provisions of paragraph 3 of article 7 (business profits) shall apply only provided that the costs could be attributable to the permanent establishment in accordance with the provisions of the tax laws of the Contracting State in which the permanent establishment is situated.

3. Ad paragraph 2 of article 10 (dividends) for the application of the additional tax under the law of Chile, it is agreed that: (i) in the case of the first category tax fail to be fully deductible in calculating the amount of additional tax payable; or (ii) in the case of the additional tax rate applicable to residents of Portugal, as provided for pursuant to article 4 (resident) of this Convention, shall not exceed 42%, the Contracting States shall consult with a view to the amendment of the Convention in order to restore the balance of benefits under the Convention.

4. Ad paragraph 3 of article 10 (dividends) it is understood that the expression ' other duties ' includes a profit-sharing agreement (Association in participation).

5. Ad) (b) of paragraph 2 of article 11 (interest) it is agreed that, when Portugal apply a 5% rate in accordance with article 6 of Directive 2003/49/EC of the Council of the EU, this lower rate will apply automatically, with regard to article 11, paragraph 2, point (b)), in relation to interest accruing from Chile and whose beneficial owner is a resident of Portugal , and interest from Portugal and whose beneficial owner is a resident of Chile, under the same conditions as if such lower rate had been specified in the said paragraph.

The competent authority of Portugal shall inform without delay the competent authority of Chile that were meeting the requirements for the application of this paragraph.

6. Ad article 10 (dividends), 11 (interest) and 12 (Royalties) articles 10 (dividends), 11 (interest) and 12 (Royalties) shall not apply if the main purpose or one of the main objectives of any person concerned with the creation or transfer of a right or a claim for which they are paid the dividends, interest or royalties for the benefit of the provisions of those Articles by the said creation or assignment.

7. Ad article 13 (capital gains) in the case of a seller referred to in paragraph 4, subparagraph b) of article 13 (gains), which held the rights or shares disposed of during a period exceeding 12 months and whose usual activity does not consist in the sale and purchase of shares, the tax levied shall not exceed 16% of the amount of the gain.

Anyway, it is considered that the seller does not carry the usual activity of sale and purchase of shares when the equity stake in the company is more than 50%.

8. Ad article 18 (pensions) it is understood that the term «» includes payments made to a pension plan or to a beneficiary in accordance with the standards of a plan recognized for tax purposes as a pension plan by the Contracting State in which the payments are coming from.


9. Ad article 22 (Elimination of double taxation) (i) it is agreed that the information contained in the Circular forms 17 of 2004, Chile, and of «certificate of Fiscal Residence ' used by the competent authority, in effect on the date of signature of this Convention, are sufficient for the purposes of applying the provisions of the Convention. (ii) Any correction or amendment to application mode above agreed will be settled by mutual agreement between the competent authorities.

10. Ad article 23 (non-discrimination) it is understood that the provisions of paragraph 4 of article 23 (non-discrimination) should not be interpreted to prevent the application by a Contracting State of the provisions of its domestic legislation relating to the sub-capitalização, except in cases where the Member companies demonstrate that, due to the special characteristics of their activities or their specific economic circumstances , the conditions or imposed between those enterprises are in conformity with the principle of absolute independence (arm's length principle).

11. Ad paragraph 2 of article 24 (mutual agreement procedure) in the case of Portugal, any agreement reached shall be implemented irrespective of the time limits laid down in its national law.

In WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Protocol.

DONE in SANTIAGO, the seven days of the month of July 2005, in duplicate, in the Portuguese, Spanish and English languages, each text being equally valid. In case of divergence of interpretation of this Protocol, the English text shall prevail.

For the PORTUGUESE REPUBLIC for the REPUBLIC of CHILE, Secretary of State for Foreign Affairs and cooperation Joao Gomes Cravinho Finance Minister Nicolas Eyzaguirre Guzman CONVENIO ENTRE LA REPUBLICA PORTUGUESA Y LA REPUBLICA DE CHILE to AVOID LA IMPOSICION DOBLE Y to PREVENT HER TAX EVASION EN RELACION AL IMPUESTO A LA RENTA La República Portuguesa y la República de Chile , deseando complete un Convention to avoid la doble imposición y to prevent her evasión fiscal en relación al impuesto a la renta Han agreed it siguiente: CHAPTER I SCOPE Article 1 APLICACION DEL CONVENIO PERSONAS INCLUDED This Covenant applies to people of one resident of both Contracting States.

Article 2 TAXES COMPRENDIDOS 1. This Covenant applies to you taxes on la renta exigibles per uno de los Contracting States, anyone that sea el exacción system.

2. If taxes on consideran la renta that la totalidad de la renta gravan the any part of la misma, included los taxes on profits derived from la enajenación las de bienes muebles o inmuebles, los taxes on el mind sueldos the wages paid by companies, así as los taxes about las plusvalías.

3. Los taxes current los that applies this Covenant son, en particular: a) en Portugal, (i) El impuesto sobre la renta de las personas naturales ("Imposto sobre o Rendimento das Pessoas Singulares-IRS"); (ii) El impuesto sobre la renta de las sociedades ("corporate income tax-IRC)"; y (iii) La sobretasa del impuesto sobre la renta site de las sociedades ("Pours"); (en adelante called "Impuesto English"); y b) en Chile, los taxes established en la "Ley sobre Impuesto a la Renta" (en adelante called "Chilean Impuesto").

4. El Convenio applies also to los taxes de naturaleza idéntica o sustancialmente analogous if con posterioridad establezcan la fecha de la firma del mismo, y que se añadan los current les sustituyan. Competent authorities of the Contracting States if comunicarán each other, las modificaciones que se hayan introducido sustanciales en sus legislaciones thereof imposed.

CHAPTER II Article 3 BACKLOG BACKLOG GENERALES 1. The solution of this Covenant, unless su una interpretación infiera different context: a) el term "Portugal" means el territorio de la República Portuguesa located en el continente europeo, los archipelagoes of Azores and Madeira, and included are su territorial sea y aguas interiores así el fondo marino, el subsuelo y cualquier otra area where la República Portuguesa ejerce derechos de soberanía the jurisdicción de conformity con el derecho internacional y la Chilean legislation.

b) el term "Chile" means la República de Chile and included are su territorial sea y aguas interiores así el fondo marino, el subsuelo y cualquier otra area where la República de Chile ejerce derechos de soberanía the jurisdicción de conformity con el derecho internacional y la Chilean Chilean legislation.

c) las expresiones "Contracting State" y "el otro Contracting State" significan Chile y Portugal, según lo requiera el context;

d) el end "persona" comprende las personas naturales y cualquier otra las societies agrupación de personas;

e) el end "sociedad" means any legal entity cualquier persona considered legal tax solution persona;

f) las expresiones "enterprise of a Contracting State" y "del otro Contracting State" significan, respectively, a explotada company for a resident of the Contracting State and a un explotada company by un resident del otro Contracting State;

g) la expresión "international traffic" means any transport by un buque the explotado aircraft by a company of a Contracting State, except when ese es carried out transportation only between points situated in the other Contracting State;

h) la expresión "competent authority" means: (i) en Portugal, el Minister of Hacienda, el Director General of Taxes ("Director-General of taxes") el authorized dealer of these; (ii) y en Chile, el Hacienda Minister su authorized representative;

I) el term "national" means: (i) any natural persona posea la nacionalidad de un Contracting State; (ii) any legal persona of the Association as current Chilean legislation of a Contracting State.

2. Para la aplicación del Convenio por un Contracting State, en cualquier momento, cualquier expresión in the set en el mismo copy will have, unless su una interpretación infiera different context, meaning, el en ese momento, le atribuya la ese Chilean legislation on State taxes que son los del Convenio, el prevaleciendo object meaning attributed by her Chilean legislation imposing on el that would result from other branches del Derecho de ese State.

Article 4 RESIDENT 1. The solution of this Covenant, la expresión "resident of a Contracting State" means any persona, en virtud de la ese Chilean legislation, State is the imposición sujeta en el mismo por razón de su domicilio, residencia, headquarters of Directorate, place de cualquier otro discretion the Constitution of similar nature, and also included are al propio y cualquier State political administrative subdivisión the local authority. Sin embargo, this expresión in the people who stay that included are subject to imposición en ese State exclusively by la renta that obtengan de fuentes located en el quoted State.

2. Cuando, en virtud de las del dispositions paragraph 1, una persona natural sea resident of both Contracting States, su will situation de la siguiente manera: a) shall be deemed to be a resident only persona dicha del Estado donde tenga una su disposición permanent housing; you had permanent housing su disposición en both States, be deemed resident sólo del Estado con relaciones personales y mantenga el bad economic estrechas (Centre of interests vitales); b) si no pudiera determinarse el Estado en el dicha persona tiene el centro de sus interests vitales, si in una vivienda permanent had the su disposición en none of the States, will be considered a resident but del Estado donde alive usually;

c) si viviera en usually both States, no lo hiciera en none of them, will be considered a resident but del Estado del to sea;

d) si fuera nacional of both States, the no lo fuera de none of them, the competent authorities of the Contracting States el caso resolverán by un procedimiento de acuerdo mutuo.

3. Cuando en virtud de las del dispositions paragraph 1 una persona, which in sea natural persona, sea resident of both Contracting States, the competent authorities of the Contracting States deberán hacer it posible el caso unresolved by acuerdo mutuo, teniendo en la consideración headquarters of Directorate, la central workshop the main, el lugar de cualquier otro factor relevant to the Constitution. En ausencia de ese acuerdo, dicha persona in the copy will have the law none of them benefits contemplated by this Covenant, except en cuanto puede require los beneficios de los Articles 23 (No discriminación) y 24 (Procedimiento de acuerdo mutuo).

Article 5 PERMANENT ESTABLISHMENT 1. The solution of this Covenant, la expresión "permanent establishment" means a fixed place of business through un el cual a company performs all the part of su-RI.

2. La expresión "permanent establishment" includes, en particular: a) las sedes de dirección;

b) las sucursales;

c) las workshops;

d) las factories;

and) los talleres; y f) las minas, los pozos the gas oil, las canteras the cualquier otro lugar en relación a la explotación exploring the natural resources.

3. La expresión "permanent establishment" also included are:


the) the project una construcción, lift the montaje y las related oversight activities con ellos, pero sólo cuando dicha work, construction project the tenga una activity duration exceeding six months;

b) la prestación de servicios for part of a company, including resellers, services through to u otras personas naturales empleados ordered by her company for ese fin en el case tales activities prosigan en el país during un period the periods en excedan of 183 days in total, within un anyone period of sweet months.

The los del los calculation solution growth temporales that if refiere this paragraph, activities carried out by a company the associated real otra empresa en el sentido del article 9 (Associated Enterprises) of this Agreements, aggregate al erán during el cual son carried out activities for la empresa de la que es, si las associated real activities of both companies son sustancialmente. the identical

4. Nevertheless it dispuesto earlier in this article, it is considered that la expresión "permanent establishment" in: included are) la instalaciones con el is of only storing data concerning fin, exhibiting the deliver the bienes mercancías pertenecientes a la company;

b) el de un bienes tank maintenance the mercancías pertenecientes a la empresa con el single fin de almacenarlas, exponerlas the entregarlas;

c) el de un bienes tank maintenance the mercancías pertenecientes a la empresa con el single fin that sean transformed by otra company;

d) el de un maintenance place fijo business con el single fin bought the bienes, mercancías up información, for her company;

e) maintenance of un place el fijo business con el single fin de hacer publicidad, provide the information to carry out scientific research for la empresa y cualquier otra similar activity, cuando esas tengan un preparatory character activities the helper.

5. Nevertheless it dispuesto en los párrafos 1 y 2, cuando una persona, other than un agent independiente al que le sea aplicable el paragraph 7, actúe per una cuenta y company sport y ejerza usually en un Contracting State powers that it faculten to conclude agreements for cuenta de la empresa, if considers esa company tiene un establecimiento en ese respecto State of permanent anyone of las activities dicha persona realice for her company unless las esa persona activities if limiten las mentioned en el y 4 paragraph, to be carried out through a fixed place of business, place of business in the fijo dicho fuere regarded as un establecimiento de acuerdo con las permanent dispositions of paragraph ese.

6. Nevertheless this article's previous las dispositions, it is considered that a company is a resident of a Contracting State aseguradora tiene, saved by you regarding the los reaseguros, un establecimiento en el otro permanent Contracting State itself raw recauda en el territorio de este otro si State ensures riesgos situated en él by medio de un distinguished representative of un agent independiente al el paragraph 7 applies.

7. In that a company tiene un establecimiento en un permanent Contracting State by el mero hecho that realice sus actividades en ese State through a corridor, un comisionista general cualquier otro, siempre independiente agent dichas personas actúen that within del marco ordinario of su-RI, y en sus relaciones con dichas financial transactions the companies if the pacten impongan condiciones impuestas aceptadas the sean of las generally agreed by independientes agents.

8. El hecho de una sociedad un resident that Contracting State control the sea controlled by una sociedad del otro Contracting State resident, which perform activities empresariales en ese otro Estado (ya sea por medio de un establecimiento de otra manera permanent) in the soil for himself anyone convierte of these societies en permanent establishment of la otra.

CHAPTER III IMPOSICION DE LAS BORED BORED of BIENES INMUEBLES Article 6 1. Las bored that un un resident Contracting State of bienes inmuebles don't (included las bored of agricultural by the forest-based) located in the other Contracting State a someterse a imposición en ese otro Estado.

2. solution of this Covenant to, la expresión "bienes inmuebles" copy will have el meaning le atribuya el derecho del Estado en que los bienes Contractor who stay set. Dicha expresión en los bienes anyway included are accessories to los bienes inmuebles, el ganado y el equipo used by forest-based agricultural y en los derechos a los sean aplicables las dispositions of general law relating to los bienes raíces, el bienes inmuebles y usufructo de el derecho a percibir paid variables the fixed by la explotación la concession de la explotación de yacimientos minerales , fuentes y otros natural resources. Los buques y se considerarán bienes inmuebles in aircraft.

3. paragraph 1 son Las del dispositions aplicables a las bored derived it utilization, el arrendamiento o aparcería, así as cualquier otra forma de explotación de los bienes inmuebles.

4. Las los párrafos dispositions 1 y 3 if apply equally to las los bienes inmuebles derived bored de una empresa y de los bienes inmuebles used for la prestación de servicios personales independientes.

5. Las previous dispositions también son aplicables a las bored from bienes muebles con bienes inmuebles related y de la prestación de servicios para la explotación de bienes inmuebles the mantención.

Article 7 BENEFITS 1 EMPRESARIALES. Los beneficios de una empresa de un Contracting State only the en ese imposición someterse a State, in which her company perform su-RI en el otro Contracting State through a permanent establishment situated en él. Si la company performs the ha held su-RI of dicha manera, los beneficios de la empresa a someterse a imposición en el otro Estado, pero sólo en la sizes in that assignif this puedan permanent establishment.

2. Guy to it laid down in the paragraph 3, when a company of a Contracting State realice su-RI en el otro Contracting State through a permanent establishment situated en él, en each Contracting State if the atribuirán dicho establecimiento los benefits that this could be "obtener hubiera una distinct company y las mismas realized that separated the similar activities , en las mismas condiciones y similar it is con la empresa con independencia total de la que es establecimiento y con todas las demás permanent personas.

3. Para la determinación de los beneficios del establecimiento permanent if will allow la deducción de los NES spending haya incurrido para la realización de los fines del establecimiento permanent, comprendidos los generales y dirección expenses of Administration to los mismos fines, so you if efectúan en el Estado en that find el establecimiento permanent en otra part.

4. Mientras sea usual en un Contracting State to determine los beneficios imputables un establecimiento standing on the base of un reparto de los beneficios totales de la company between sus several pieces, it established in paragraph 2 in the ese Contracting State will determine this way los beneficios imponibles; Sin embargo, el reparto method adopted, Armageddon to be such that the result obtenido sea as los contenidos principles in this article.

5. If no benefit will attribute to a permanent establishment by el hecho number that this buy bienes the mercancías para la empresa.

6. The solution of los párrafos prior, los beneficios imputables al establecimiento permanent if calcularán each year by the same method, in which valid reasons existan y sufficient to proceed otra form.

7. Cuando los beneficios comprendan bored governed separately en otros articles of this Covenant of the las aquéllos quedarán dispositions affected by it this article.

Article 8 MARITIMO Y 1 AIR TRANSPORT. Los beneficios de una empresa de un Contracting State from la explotación de buques the aircraft en international trafficking but a someterse a imposición en ese State.

2. paragraph 1 son Las del dispositions también aplicables a los beneficios from la participación en un "pool", en una empresa mixta en una explotación international agency.

3. societies of different countries Always acuerden explotar un air transport business jointly, en la forma de un consorcio the una asociación form similar, la del dispositions paragraph 1 if the aplicarán aquella part of los del consorcio benefits the asociación that matches a la participación en ese Consortium the asociación de una sociedad que es un Contracting State resident. Article 9 ASSOCIATED ENTERPRISES 1. Cuando a) a company of a Contracting State participates directly the indirectly en la Direccion, el control de una empresa del capital el otro Contracting State, b) unas mismas personas participen direct or indirectly en la Direccion, el control el capital of a company of a Contracting State y de una empresa del otro Contracting State,


y en uno y otro case las dos empresas, en sus relaciones who stay the financial transactions, joined by the impuestas aceptadas conditions that difieran of that agreed by serían independientes, las habrían bored that been obtenidas por una de las empresas de dichas condiciones exists in, y hecho in if han held the cause de las mismas , podrán incluirse en la renta of esa company y sometidas a imposición en consecuencia.

2. Cuando un Contracting State incluya en la renta de una empresa de ese Estado, y someta, en consecuencia, la imposición renta sobre la cual una empresa del otro Contracting State ha been sometida a ese otro en imposición State, y la renta así es renta far would we have to been included performed by la empresa del Estado mentioned en primer place you las condiciones convenidas between las dos empresas hubieran been that if hubiesen convenido between companies independientes ese otro Estado, you're okay that el set performed by el primer lugar en mentioned State is justified both en sí mismo con respecto al monto, practicará el correspondiente de la fit cuantía del impuesto there on about this renta. To determine if adjustment tendrán en dicho cuenta las demás dispositions of this Convention and the competent authorities of the Contracting States if consultarán en if needed.

Article 10 DIVIDENDS 1. Los dividends paid by a resident of a Contracting State society the un resident del otro Contracting State a someterse a imposición en ese otro Estado.

2. dividends can also someterse a Dichos imposición en el Contracting State residing la sociedad en to pay dividend y según los la Chilean legislation of this State. Sin embargo, si el actual grantee los dividends es un resident del otro Contracting State, el impuesto así required can exceed del:) 10 by ciento del import crude los dividends si el actual grantee es una sociedad who possess less el al 25 directly by ciento del capital de la sociedad who pays you dividends; y b) 15 by ciento del import crude los dividends en todos los demás cases.

Competent authorities of the Contracting States establecerán of mutuo acuerdo la form of application of these limitaciones.

This paragraph in la imposición de la sociedad affects respecto de los beneficios con cargo a los que se los paguen dividends. In the case of Chile, this included are la aplicación imposición del Impuesto.

3. El end "dividends" in the sense of this article means las bored de las acciones u otros derechos, except you credit, which allows participating en los beneficios, así as las bored of otros derechos subject al mismo régimen tributario that las bored de las acciones por la Chilean legislation del Estado del que la sociedad que hace la distribution sea resident.

4. Las los párrafos dispositions 1 y 2 in son aplicables si el actual grantee los dividends, resident of a Contracting State, the Contracting State is held en el otro, del que es la sociedad resident who pays you dividends, a business activity through a permanent establishment situated there, pays en ese otro unos personales independientes services State through a coral base located there , y la participación which genera los dividends is effectively linked to the permanent establishment coral base dicho. Such case, son aplicables en las del dispositions article 7 (Benefits empresariales) del article 14 (Servicios personales independientes), según proceda.

5. Cuando una sociedad un resident Contracting State the benefits don't bored from del otro Contracting State, ese otro in State can require no impuesto about los dividends paid by la sociedad, except in so far as en esos dividends if that un resident paguen ese otro la participación State that genera los dividends is actually linked to a permanent establishment of the una base coral situated en ese otro Estado , ni los having benefits in distributed de la sociedad un impuesto about los mismos, aunque los dividends paid los beneficios in distributed consistan, partially total, en the benefits from ese otro bored State.

Article 11 INTEREST 1. Los interests from a Contracting State paid to a resident y del otro Contracting State a someterse a ese otro en imposición State.

2. Sin embargo, también someterse a dichos interests can imposición en el Contracting State del procedan según la y to Chilean legislation of State, pero ese si el actual es del otro resident country of the Contracting State, el impuesto así required can exceed del:) 5 by ciento del import crude los interests derived from bonds the values regular y que son in sustancialmente en una bolsa de valores reconocida; b) 10 by ciento del import crude los interests derived from: (i) préstamos y banks otorgados compañías de seguros;

(ii) la venta on credit of machinery y equipo, el al buyer paid by grantee herd es el equipo y dicha machinery salesman.

c) 15 by ciento del import crude los interests en todos los demás cases.

Competent authorities of the Contracting States establecerán of mutuo acuerdo la form of application of these limitaciones.

3. El term "interests", in the sense of this article means las bored of any credits naturaleza, con sin garantía hipotecaria, y en particular las bored public values and bored of bonds "debentures", así as anyone, otra renta that Chilean legislation del Estado where procedan los asimile interests to las bored de las cantidades given en loan. El end "interests" in las bored included included are en el article 10 (dividends).

4. Las los párrafos dispositions 1 y 2 in son aplicables si el actual grantee los interests, un resident Contracting State, the Contracting State is held en el otro, del that interests them, una proceden business activity through a permanent establishment situated there, the pay services personales independientes by unos medio de una coral base located there, y el genera los interests credit is linked to the establishment of permanent base coral dicho. Such case, son aplicables en las del dispositions article 7 (Benefits empresariales) del article 14 (Servicios personales independientes), según proceda.

5. Los interests if consideran from un Contracting State cuando el deudor sea ese resident State. Sin embargo, cuando el deudor de los interests, sea in the resident State Contractor, tenga en un Contracting State un establecimiento una base permanent coral en relación con el cual se haya contracted la deuda por la que se pagan los interests, y éstos soportan el establecimiento permanent if the base coral, dichos interests if Contracting considerarán from del Estado donde el establecimiento located who stay permanent base coral.

6. Cuando en razón de las relaciones entre el deudor existing especiales y el actual grantee, the de las that uno y otro con el mantengan third parties, matters of interests more than any, you reason, el mind hubieran convenido el deudor y el acreedor en ausencia de las relaciones dispositions tales of this article on if bad the latter aplicarán import. En this case, la cuantía en excess podrá someterse a imposición de acuerdo con la Chilean legislation of each Contracting State, teniendo en cuenta las demás dispositions of this Covenant.

Article 12 BENEFITS 1. Las privileges from a Contracting State paid to a resident y del otro Contracting State a someterse a ese otro en imposición State.

2. Sin embargo, these privileges can también someterse a imposición en el Contracting State del procedan y de acuerdo con to her Chilean legislation of this State, pero si el actual es del otro resident country of the Contracting State, el impuesto así required can exceed del:) 5 by ciento del import raw las privileges by el derecho al use use of equipos industriales , the scientific transactions;

b) 10 by ciento del import raw las privileges en todos los demás cases.

Competent authorities of the Contracting States establecerán of mutuo acuerdo la form of application of these limitaciones.

3. El term "privileges" empleado en this article means las cantidades de cualquier clase paid by el, el derecho al use, rights of copyright in artistic works literarias, the scientific, included the films, cinematographic films las cintas y otros medios de reproducción de imagen y el sonido, las patents, trademarks, models, plans, environmental studies the formulas the secret procedures u otra propiedad intangible , el derecho al use, use of equipment, the scientific, commercial industriales for informaciones concerning experiences industriales, the scientific transactions.

4. Las los párrafos dispositions 1 y 2 in son aplicables si el actual grantee of las privileges, a resident of a Contracting State, the Contracting State is held en el del that privileges business activity proceden las una by medio de un establecimiento permanently situated there, the pay personales independientes services through a coral base located there, y el bien el derecho por el que se pagan las privileges is effectively bound dicho permanent base establishment Coral. En this case son aplicables las del dispositions article 7 (Benefits empresariales) del article 14 (Servicios personales independientes), según proceda.


5. Las privileges if consideran from un Contracting State cuando el deudor es un ese resident State. Sin embargo, cuando quien pays las privileges, sea in un Contracting State resident, tenga en uno de los Contracting States un establecimiento una base permanent coral en relación con el cual se haya contracted her taxation of paid las privileges y dicho permanent establishment the coral base support la las mismas load, las privileges if considerarán from del Estado where is located el establecimiento la permanent coral base.

6. Cuando en razón de las relaciones entre el deudor existing especiales y el actual grantee, the de las that uno y otro con mantengan third parties, el import privileges, habida cuenta de las del derecho, use the información por los que se pagan, exceed del convenido habrían el deudor y to el actual grantee en ausencia de las relaciones dispositions tales of this article on if bad the latter aplicarán import. En this case, la cuantía en excess podrá someterse a imposición de acuerdo con la Chilean legislation of each Contracting State, teniendo en cuenta las demás dispositions of this Covenant.

Article 13 CAPITAL PROFITS 1. Las profits that un resident of a Contracting State don't de la enajenación of bienes inmuebles situated en el otro Contracting State a someterse a imposición en the latter State.

2. Las profits derived from la enajenación of bienes muebles that formen part del establecimiento de un permanent asset that a company of a Contracting State tenga en el otro Contracting State, the bienes muebles that pertenezcan una base coral that un resident of a Contracting State tenga en el otro Contracting State for la prestación de servicios personales independientes , included las profits derived from la enajenación of this permanent establishment (sólo con el set de la empresa de that part) of this coral, can base the someterse imposición en ese otro Estado.

3. Las profits derived from la enajenación of the aircraft fleets explotados en international trafficking of bienes muebles assigned a la explotación de dichos buques the aircraft, but a someterse a imposición en el Contracting State where lies el enajenante.

4. Las profits that un resident of a Contracting State don't por la enajenación u otros derechos representative of acciones del capital de una sociedad del resident each other Contracting State the someterse imposición en ese can each other Contracting State itself: a) las profits provienen capital en más de un 50 por ciento de su valor, direct or indirectly, de bienes inmuebles situated en ese otro Contracting State , b) el enajenante ha possessed, en cualquier momento del sweet period in months la enajenación, direct or indirectly, acciones u otros derechos consistent en un ciento más del 20 by the esa sociedad capital. Cualquier otra greed obtenida por un resident of a Contracting State by la enajenación u otros derechos representative of acciones del capital de una sociedad en el otro Contracting State resident también someterse a the ese otro en imposición Contracting State, pero el impuesto así required can exceed del 16 by ciento del monto de la greed.

Nevertheless cualquier otra disposición of this paragraph, las profits by un fondo de pension obtenidas que es un resident Contracting State from la enajenación u otros derechos representative of acciones del capital de una sociedad que es del otro Contracting State resident, but can the someterse imposición en el Contracting State mentioned en primer lugar.

5. Las profits derived from la enajenación of cualquier otro bien distinguished los párrafos precedents sólo en los mentioned a someterse a imposición en el Contracting State residing en el enajenante.

Article 14 PERSONALES INDEPENDIENTES SERVICES 1. Las bored that una persona natural resident of un Contracting State by la prestación de servicios don't care u otras independiente activities but a someterse a imposición en this Contracting State. Sin embargo, these can also be bored sometidas a imposición en el otro Contracting State: cuando tenga persona en dicha) el otro Contracting State a coral de la base that regularly for el performance disponga de sus activities; en this case, sólo puede someterse a este otro en la imposición State part of las bored sean atribuibles the dicha coral base; the b) cuando dicha permanezca en el otro persona Contracting State for a period the periods that total en excedan 183 days, suman the inside of a candy anyone, period months comience the finish during el año tributario considered; en this case, but a someterse a este otro en la imposición State part de la renta obtenida de las desempeñadas activities by him in this other State.

2. La expresión "professional services" includes especially independientes activities of scientific, literary, artistic, educational, so as the pedagogical activities of physicians, abogados independientes, ingenieros, architects, dentists and accountants.

Article 15 PERSONALES DEPENDIENTES SERVICES 1. Sin perjuicio de lo dispuesto en los articles 16 (Participaciones of Directors), 18 (Pension) and 19 (public Functions), los sueldos, y otras remuneraciones obtenidas wages by un resident of a Contracting State by razón de un empleo sólo someterse a imposición en ese can state, in which el empleo se realice en el otro Contracting State. SI el empleo de esa takes shape, las remuneraciones derived del mismo someterse a ese otro en imposición the State.

2. Notwithstanding paragraph 1, las del dispositions las remuneraciones obtenidas by un resident of a Contracting State en razón de un empleo performed en el otro Contracting State if exclusively gravarán en el primer: State) el perceptor remains en el otro State during the period cuya duration periods un in exceeding 183 days set en en cualquier sweet months period comience the finish en el año tributario considered , y b) las remuneraciones if pagan by, en nombre de una persona que no sea empleadora resident del otro Estado, y c) las remuneraciones in if for a permanent establishment soportan una base coral that una persona empleadora tenga en el otro Estado.

3. In spite of previous dispositions of this article las, las remuneraciones obtenidas by razón de un empleo held aboard un buque the aircraft traffic por una explotado en international company of a Contracting State can someterse a imposición en ese State.

Article 16 DIRECTORS ' fees of PARTICIPACIONES Los directors y otros paid similar to un resident of a Contracting State as miembro de un directorio don't, de un consejo supervisor to each other similar Mayor de una sociedad del otro Contracting State resident can someterse a ese otro en imposición State.

Article 17 ARTISTS Y DEPORTISTAS.DIETAS 1. Nevertheless it dispuesto en los articles 14 (Servicios personales independientes) y 15 (Servicios personales dependientes), las que un un resident bored Contracting State don't del ejercicio de sus actividades personales en el otro Contracting State en calidad de artist, such as theatre, cinema, radio televisión, the musician, as can the someterse, deportista imposición en ese otro Estado.

2. Nevertheless it dispuesto en los 7 releases (Benefits empresariales), 14 (Servicios personales independientes) y 15 (Servicios personales dependientes), cuando las bored derived personales de los activities artists los deportistas.dietas, en esa calidad, if atribuyan al propio artist deportista Bell otra persona, dichas someterse a bored the imposición en el Contracting State NES realicen las actividades del el deportista artist.

18 PENSION article 1. Pension from un Contracting State paid to a resident y del otro Contracting State but a someterse a en ese otro imposición State.

2. paid manutención y otros Foods made the un un resident Contracting State but will be the imposición sometidos en ese State. Sin embargo, los alimentos y otros paid manutención carried out by un resident of a Contracting State to a resident del otro Contracting State will, in as sean deducibles to el, the sometidos imposición solamente en el Estado mentioned en primer lugar.

Article 19 PUBLIC FUNCTIONS 1. the) Los sueldos, y otras remuneraciones wages, excluded pension paid by las, un Contracting State the per una de sus political authorities parts locales una natural persona razón de servicios rendered the State esa ese subdivisión the authority, but can the someterse imposición en ese State.

b) Sin embargo, dichos sueldos y otras remuneraciones wages, but a someterse a imposición en el otro Contracting State itself if prestan services en ese Estado y la persona es un ese resident natural state that: (i) es ese national State; (ii) the ha acquired la ese resident State output only to provide services.

2. Lo dispuesto en los articles 15 (Servicios personales dependientes), 16 (Participaciones of Directors) and 17 (artists y deportistas.dietas) applies to los sueldos, y otras remuneraciones wages paid for services rendered razón en el marco de una business activity carried out by un Contracting State the por una de sus parts the administrative policies the local authorities.

Article 20 STUDENTS


Las cantidades which receive to cover maintenance costs, sus estudios the practical training un estudiante, apprentice una persona en practica that sea, Hague was immediately before llegar a un Contracting State resident del otro Contracting State y if you find in the State mentioned en primer lugar con el single fin proceeding sus estudios the practical training in a someterse a imposición en ese Estado, siempre that procedan de fuentes located fuera de ese State.

Article 21 OTHER BORED 1. Las bored of a resident of the Contracting State, anyone that un fuese su provenance, in the mentioned previous Releases in this Covenant, but can the someterse imposición en ese State.

2. Lo dispuesto en el paragraph 1 no es aplicable a las bored, distinct las bienes inmuebles derived like enhancing en el del Article 6 paragraph 2 (Bienes inmuebles), cuando el beneficiary of dichas bored, resident of a Contracting State, realice en el otro Contracting State a business activity through a permanent establishment situated en ese otro State pay servicios personales independientes through de una base coral situated en ese otro Estado , y el derecho o bien por el que se pagan las bored is effectively bound dicho establecimiento permanent coral base. Such case, son aplicables en las del dispositions Article 7 (Benefits empresariales) del Article 14 (Servicios personales independientes), según proceda.

3. Nevertheless it dispuesto en los párrafos 1 y 2, las bored of un resident of a Contracting State, in the mentioned previous releases in this Covenant y from del otro Contracting State, también someterse a the ese otro en imposición State.

CHAPTER IV ELIMINACION DE LA DOBLE IMPOSICION Article ELIMINACION DE LA DOBLE IMPOSICION 22 1. In the case of Portugal, la doble imposición de la manera siguiente avoid if: to) Cuando un resident of Portugal obtiene bored that acuerdo con las dispositions of this Covenant, the Chile en imposición someterse a, Portugal will allow la deducción en el impuesto about las ese bored resident of un matters like al impuesto paid en Chile (excluyendo, en el caso de los dividends , el impuesto payable en Chile con respecto a las utilities extra cost a las cuales se pagan los dividends). Sin embargo, esa deducción in la part del impuesto exceed a la renta, calculated before la deducción, correspondiente a las bored that someterse a imposición en Chile can.

b) Cuando of conformity con cualquier disposición de este Convenio las obtenidas bored by un resident of Portugal who stay exempt from this State, Portugal en imposición podrá tener en cuenta, sin embargo, las bored exempt the solution to calculate el del impuesto sobre el import rest of las bored of dicho resident.

c) Nevertheless it dispuesto en el sub-párrafo), cuando una sociedad resident of Portugal receives dividends from una sociedad resident of Chile that is the impuesto y sujeta no is exempt of impuesto about los beneficios empresariales en Chile (Impuesto de Primera Category), Portugal will allow la deducción de esos dividends de la base imponible de la sociedad los ... , siempre that sociedad posea directly at least el ciento del capital by 25 de la sociedad who pays you dividends y esa if there participation mantenido continuously for los dos años precedent since it closes en la sociedad who pays you dividends if constituyó, si esto ocurrió later.

2. In the case of Chile, la doble imposición de la manera siguiente avoid if: to) los residents en Chile that bored that obtengan acuerdo con las dispositions of this Covenant, puedan someterse a imposición en Portugal, podrán believe against los correspondientes the Chilean taxes these bored los taxes paid en Portugal, de acuerdo con las aplicables dispositions de la Chilean Chilean legislation. This paragraph applies to all bored treated in this Covenant.

b) cuando of conformity con cualquier disposición de este Convenio, las obtenidas bored for a resident of Chile who stay exentos of en Chile, Chile podrá imposición, sin embargo, tener en cuenta las bored the solution to calculate el del impuesto on las demás import bored of dicho resident.

CHAPTER V SPECIAL DISPOSITIONS Article 23 in 1 DISCRIMINACION. Los nacionales de un Contractor in the State will be sometidos en el otro Contracting State the ninguna imposición u taxation on la misma that in demanding what sea más burdensome that aquellas las who who stay the puedan be sometidos los nacionales de ese otro State encuentren en las mismas condiciones, en particular con respecto a la residencia. Nevertheless las del dispositions article 1 (Personas included), la disposición es aplicable also present a las personas que no sean residents of one of both of you Contracting States.

2. Los our convenience that a company of a Contracting State tenga en el otro Contracting State in will be en ese Estado sometidos una imposición less favorable that las empresas de ese otro realicen las mismas State activities.

3. No it established in this article podrá interpretarse en el sense obligar a Contracting State to grant to los del otro Contracting State residents las desgravaciones personales, y deducciones reducciones imposed that the sus own otorgue residents en su consideración marital status the family loads.

4. Unless apliquen las del dispositions 1 paragraph del Article 9 (associated Enterprises), paragraph 6 Article 11 del del (Interests) del 6 del Article 12 paragraph (Privileges), los, las interests privileges the others expenses paid by a company of a Contracting State to a resident del otro Contracting State son deducibles, to determine the subjects imposición de los benefits this company en las mismas condiciones, that si hubieran been paid un resident del Estado en primer lugar mentioned.

5. Las sociedades sean residents of a Contracting State y cuyo capital is, partially, detentado total controlled, direct or indirectly, by one several residents del each other Contracting State the objects vould be sometidas en el primer been ninguna imposición u taxation on la misma que no sea más burdensome requirement that those las who who stay the puedan be similar societies, sometidas las del Estado en primer lugar mentioned.

6. In this article, the term "imposición" If refiere a los que son taxes object of this Covenant.

Article 24 PROCEDURE of ACUERDO MUTUO 1. Cuando una persona consider that las one measures by both Contracting States can entail for the ella implican una imposición that in this as con las dispositions of this Covenant, con independencia de los resources provided for by el derecho esos internal States, podrá having su if the competent State authority it Contractor del that sea the resident , si fuera aplicable el del 1 paragraph article 23 (No discriminación), la del Estado del Contractor that sea national. El caso should plantearse within los tres años next to la primera de la notification measure involving una imposición in as las dispositions del Convenio.

2. Her competent authority, si la reclamación le seems founded y si puede for themselves misma in find una solución satisfactoria, will it posible for solve it matter by un procedimiento de acuerdo mutuo con la del otro Contracting State competent authority, the fin to avoid a fits imposición which in this Covenant.

3. the competent authorities of the Contracting States harán it posible for solve las las dudas difficulties that la interpretación o aplicación plantee del Convenio through un procedimiento de acuerdo mutuo.

4. Whereas el main goal of this Covenant es avoid la doble international Contracting States imposición acuerdan which, in the event that las dispositions del Convenio sean used en so that otorguen benefits in covered ni intended for him, las competent authorities of Contracting States deberán, en conformity al procedimiento de acuerdo mutuo, recommend specific modificaciones al Convenio. Contracting States besides that of anyone, acuerdan dichas recomendaciones y de manera discussed will be considered expeditiously con miras a modify el Convenio en la sizes in that sea necessary.

5. the competent authorities of the Contracting States podrán communicate directly to fin de llegar a un acuerdo en el sentido de los párrafos earlier.

Article 25 EXCHANGE of INFO


1. the competent authorities of the Contracting States intercambiarán las informaciones needed to apply it dispuesto en este Convenio, en el derecho interno de los Contracting States concerning los comprendidos en el Convenio taxes en la en la imposición measure provided for en el mismo in sea contradicts al Convenio. El intercambio de información in will be limited by article 1 (Personas included). Las informaciones given by a Contracting State will be classified the same way mantenidas en en that las informaciones sobre la base del derecho obtenidas internal ese Estado y sólo se comunicarán a las personas the authorities (including los tribunales y administrative organs) that tienen Luz en la gestión recaudación de los taxes the established by ese, los ejecutivos concerning the declarative procedures dichos taxes , de la promote de los los mismos related resources. Dichas personas the authorities but these utilizarán informaciones to these fines. Podrán reveal information en las audiencias de los tribunales public en las judiciales you've killed.

2. En ninguna case las 1 paragraph podrán interpretarse dispositions del en el sense obligar a Contracting State: the administrative measures) su Chilean legislation opposing the administrative practice, a las del otro Contracting State;

(b) provide that if information) can obtener la base su propia Chilean legislation the en el ejercicio de su normal administrative practice, the de las del otro Contracting State;

c) provide information to reveal trade secret, the professional, commercial procedures industriales the informaciones cuya comunicación sea contradicts al orden público ("ordre public").

3. Cuando la información sea requested by a Contracting State of conformity con this article, el otro Contracting State information to which obtendrá refiere la solicitud en la misma as if if was su propia, sin imposición import el hecho that this other State, en ese momento, in such requiera información.

Article 26 DIPLOMATIC MISSIONS MIEMBROS Y Las dispositions CONSULAR WORKSHOPS of this Covenant in afectarán los fiscales privileges that enjoy los miembros de las misiones de las workshops the diplomatic consular acuerdo con los generales del derecho international principles en virtud de las dispositions de acuerdos especiales.

Article 27 MISCELANEAS DISPOSITIONS 1. Con respecto a joint investment accounts the bottoms (as for example los Bottoms of investment of Capital Extranjero, Ley N° 18,657), which are subjects the impuesto sobre la y cuya administración referred back must be carried out by un resident en Chile, las dispositions of this Covenant in will be interpreted in the sense of restricting la imposición de Chile del impuesto sobre la referred back to those accounts the bottoms: con respecto a las inversiones en bienes situated en Chile.

2. To los fines del paragraph 3 del article XXII (consultation) del Acuerdo General sobre el Comercio de Servicios, Contracting States which, acuerdan sin perjuicio de ese paragraph, any dispute between them respect you as a cae in del ámbito de este Convenio, puede be ante el Consejo llevada de Comercio de Servicios as it stipulated en dicho paragraph , pero sólo con el consentimiento of both Contracting States. Cualquier duda sobre la interpretación of this paragraph will be resuelta as el paragraph 3 del article 24 (Procedimiento de acuerdo mutuo), en case of no llegar the acuerdo con dressed to this procedure, as any other procedure agreed by both Contracting States.

3. Nothing in this Convention shall affect la aplicación de las current dispositions del D.L. 600 (la Inversión Extranjera status) de la Chilean Chilean legislation, as who stay into force a la fecha de la firma de este Convenio y aún cuando fueren eventually modified sin change su general principle.

4. Las contribuciones en un año por servicios en ese año y provided paid for, by cuenta, una persona natural resident of un Contracting State which is present temporarily en ese Estado, un plan de pension that es reconocido en el otro tax solution to Contracting State should, during un period that exceed 60 months total in en , be treated in the State mentioned en first place, de la misma so that una strengthening paid the pension system for un reconocido en ese State tax fines, you) was natural persona en dicha contribuyendo a regular pension plan for a period that ended immediately before hubiera pasara being the resident to be temporarily present in the State mentioned en primer lugar , y b) competent State authorities mentioned en primer lugar el plan de pension acuerdan corresponds en términos generales un plan de reconocido pension for solution by ese State tax.

For los fines of this paragraph, "pension plan" el plan de pension included are created as el sistema de seguridad social of each Contracting State.

5. Nothing in this Convention shall affect la imposición de un Chile en resident en Portugal en relación a los beneficios atribuibles un establecimiento en Chile, both located permanent bajo el Impuesto de Primera Category as el Impuesto, siempre el Impuesto de Primera Category sea deducible against el Impuesto.

CHAPTER VI DISPOSITIONS FINALES Article 28 ENTRY INTO FORCE 1. Each uno de los Contracting States shall notify each other in writing, al through de la vía, el cumplimiento de los procedimientos required by su Chilean legislation for entry into force of this Convention. El Convenio will en vigor en la fecha de la last notification.

2. Las del Convenio se aplicarán dispositions: a) en Portugal, (i) con respecto a los taxes de retención en la fuente, cuyo hecho if produzca generator from del primer día de enero del año calendario immediately following the aquel en el Convenio entre en force;

(ii) con respecto a los demás taxes, about las bored generadas en cualquier año tributario that comience from del primer día del mes de enero del año calendario immediately following the aquel en el Convenio entre en force; y b) en Chile, con respecto a los taxes about las bored if y obtengan las cantidades que se paguen, abonen en cuenta, se pongan a disposición se contabilicen as spent, del primer día from del mes de enero del año calendario immediately following the aquel en el Convenio entre en force.

Article 29 DENUNCIATION 1. This Covenant shall remain into force indefinitely, pero los Contracting States anyone can, to bad no later than 30 June of each el año calendario that comience después de la expiración de un period of five years from her close to su vigencia en entry, dar al otro Contracting State un warning of termination in writing through diplomatic de la vía.

2. Las del Convenio dejarán de dispositions having efecto: a) en Portugal, (i) con respecto a los taxes de retención en la fuente, cuyo hecho if produzca generator from del primer día de enero del año calendario immediately following the aquel señalado en el mentioned notice of termination;

(ii) con respecto a los demás taxes, about las bored generadas en el año tributario that comience from del primer día del mes de enero del año calendario immediately following the aquel señalado en el mentioned notice of termination; y b) en Chile, con respecto a los taxes about las bored if obtengan y las cantidades que se paguen, abonen en cuenta, se pongan a disposición se contabilicen as spent, del primer día from del mes de enero del año calendario immediately following the aquel señalado en el mentioned notice of termination;



EN FE DE LO CUAL, los mine ban treaty signatories, debidamente allowed al efecto, han signed this Covenant.

HECHO en Santiago, los siete días del mes de Julio de dos y 1000 five, in English, español and English languages, all texts equally authentic siendo. En case of tensions resulting from unclear en la interpretación de este Convenio, el en inglés text shall prevail.

By LA REPUBLICA PORTUGUESA by LA REPUBLICA DE CHILE Secretary of State business Secretary of Hacienda Extranjeros y Cooperacion João Gomes Cravinho Nicolás Eyzaguirre Guzmán PROTOCOL DEL CONVENIO ENTRE LA REPUBLICA PORTUGUESA Y LA REPUBLICA DE CHILE to AVOID LA IMPOSICION DOBLE Y to PREVENT HER TAX EVASION EN RELACION AL IMPUESTO A LA RENTA Al momento de la firma del Convenio entre la República Portuguesa y la República de Chile to avoid la imposición doble y to prevent La evasión fiscal en relación al impuesto a la renta, los han convenido las mine ban treaty signatories next dispositions that forman integral del Convenio.

1. Ad. Article 2 (Taxes comprendidos) If acuerda that si después de la fecha en la cual el Convenio entre en force, were Contracting States to introduce un impuesto sobre el patrimonio de acuerdo a sus leyes, los Contracting States iniciarán con la finalidad negotiations to conclude un Protocol to modify el Convenio, extendiendo su ámbito impuesto sobre el patrimonio's cualquier that hubieran introducido. Los términos such tomarán Protocol en consideración todo acuerdo between anyone, de los Estados y un tercer State to eliminate la doble imposición del patrimonio.

2. Ad. Article 7 (Benefits empresariales) paragraph 3


If I understand that las del dispositions article 7 paragraph 3 del (Benefits empresariales) if apply but you you can be spending attributed al establecimiento de acuerdo con las permanent dispositions de la Chilean legislation tributaria del Estado en el cual el Contractor permanent establishment is situated.

3. Ad. Article 10 (dividends) paragraph 2 Con respecto a la aplicación del Impuesto en Additional conformity con las de la dispositions Chilean Chilean legislation if acuerda that you: (i) el Impuesto de Primera Category deja to be totally deducible en la determinación del monto del Impuesto additional pay; (ii) la tasa del Impuesto Additional affecting un resident of Portugal, as defined in article 4 (resident), exceeding by 42 ciento, los del Contracting States if the consultarán object to modify el Convenio con la finalidad de restore el equilibrio de los beneficios del mismo.

4. Ad. Article 10 (dividends) paragraph 3 If understand that la expresión "otros derechos" included are una convención to participate in benefits.

5. Ad article 11 (Interests), paragraph 2, subpárrafo b) If that Portugal apply acuerda cuando una tasa de ciento de acuerdo al 5 by Article 6 de la Directive del Consejo de la Unión Europea 2003/49/EC, esa tasa más baja applies automatically al sub-párrafo (b)), Article 11, paragraph 2 del por los interests from Chile y cuyo actual grantee es un resident of Portugal y por los interests from Portugal y cuyo actual grantee es UN resident of Chile, bajo las mismas condiciones as si esa tasa reducida hubiera en ese sub-párrafo was specified.

Competent authority of Portugal Las infomará the competent authority of Chile, sin demora, which han cumplido las condiciones para la aplicación of this paragraph.

6. Ad. articles 10 (dividends), 11 (Interests) and 12 (Privileges) Las los dispositions Articles 10 (dividends), 11 (Interests) and 12 (Privileges) no se aplicarán si el uno de los principales purpose purposes of any related persona con la creación the atribución de un derecho credit en relación con los cuales los dividends, interests the privileges if pagan, fuera el draw ventajas of these Articles by such creation the atribución. 7. Ad. Article 13 (Immediate) En el caso de el perceptor de la greed that if refiere el paragraph 4, letter b), del article 13 (Immediate), haya las acciones u otros derechos possessed that if enajenan for a term exceeding sweet months y siempre el perceptor in the focus usually la enajenación de acciones , el impuesto required can exceed del 16 for la ciento greed.

En any case if considers el perceptor in the dedicated usually la enajenación of acciones cuando la participación poseida en el capital de la sociedad sea of bad del 50 por ciento.

8. Ad. Article 18 (Pension) If you understand that term "pension" included are el cualquier paid made un miembro the beneficiary of un plan de pension en conformity con las dispositions of dicho plan, reconocido for solution by Contracting State tributarios en el that originates el pago.

9. Ad. Article 22 (la doble imposición continuity) (i) If acuerda la información contenida en los forms of her 17 of 2004 Circular of Chile y en el "Certificate of Fiscal Residence" used by Competent Portuguese Authority as encuentran en force a la fecha de la firma de este Convenio, s enough to apply las dispositions del Convenio.

(ii) Any direct o cambio en la aplicación de lo form previously agreed if competent authorities by las establecerá by mutuo acuerdo.

10. Ad. Article 23 (No discriminación) If you understand that las del 4 paragraph del dispositions article 23 (No discriminación) on will be interpreted in such a way that impidan her application for a Contracting State of las subcapitalización covered by standards en su internal Chilean legislation, except en los cuales en cases this las puedan associated companies try that, thanks to the las especiales features of sus activities to sus specific economic circumstances , las condiciones impuestas between these companies the aceptadas if encuentran en conformity con el principio del independiente operator.

11. Ad. Article 24 (Procedimiento de acuerdo mutuo), paragraph 2 in the case of Portugal cualquier acuerdo alcanzado if implement nevertheless los límites de tiempo covered in Chilean legislation.

EN FE DE LO CUAL, los suscritos, debidamente allowed al efecto, han signed el this Protocol.

HECHO en Santiago, los siete días del mes de Julio de dos y 1000 five, in English, español and English languages, all texts equally authentic siendo. En case of tensions resulting from unclear en la interpretacion en inglés, el text shall prevail.

By LA REPUBLICA PORTUGUESA by LA REPUBLICA DE CHILE Secretary of State business Secretary of Hacienda Extranjero y Cooperacion João Gomes Cravinho Nicolás Eyzaguirre Guzmán CONVENTION BETWEEN THE PORTUGUESE 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 Portuguese Republic and the Republic of Chile , desiring to completion date the 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 imposed on behalf of a Contracting State or of its political or administrative subdivisions or local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amount of wages or salaries paid by enterprises, as well as 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 ("tax sobre o Rendimento das Pessoas Singulares-IRS"); (ii) The corporate income tax ("corporate income tax – IRC"); and (iii) The local surtax on corporate income tax ("Pours"); (hereinafter referred to as "Portuguese tax"); and (b)) in Chile, the taxes imposed under the Income Tax Act, "Ley sobre Impuesto a la Renta" (hereinafter referred to as "Chilean tax").

4. The Convention shall apply also to any identical or substantially similar taxes which are imposed 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 Azores and Madeira, including the territorial sea and inland waters copies thereof as well as the seabed, the subsoil and any other area wherein the Portuguese Republic exercises sovereign rights or jurisdiction in accordance with international law and the laws of the Portuguese Republic; b) the term "Chile" means the territory of the Republic of Chile, including the territorial sea and inland waters copies thereof 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 treated as a body corporate for tax purposes; f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting 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 greyscale 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 nationality of a Contracting State; (ii) any legal person or association constituted in accordance with the laws in force in a Contracting State.

2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning 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 liable to tax therein 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 copies thereof. This term, however, does not include any person who is liable to tax in that State in respect only 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 deemed 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 deemed to 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 deemed 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 settle 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 settle the question by mutual agreement having regard to its place of effective management, the place of head or main office, place of incorporation, or any other relevant factors. In the absence of such agreement, such person shall not be entitled 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 wholly or partly carried on.

2. The term "permanent establishment" includes especially: a) a place of management; b) branch; c) an office; d) factory; e) a workshop; and (f)) 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 meaning 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 identical or substantially the same.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include: a the use of facilities greyscale) 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 for the purpose of greyscale storage, display or delivery; c) the maintenance of a stock of goods or merchandise belonging to the enterprise for the purpose of greyscale processing by another enterprise; d) the maintenance of a fixed place of business greyscale for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; and) the maintenance of a fixed place of business greyscale for the purpose of advertising, supplying information or carrying out scientific research for the enterprise and any other similar activity, if such activities are of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2 where a person (other than an agent of an independent status to whom paragraph 7 applies) is acting on behalf of an enterprise and has and habitually exercises in a Contracting State an authority to completion date contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise , unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

6. Notwithstanding 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 a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein if it through a representative other than an agent of independent status to whom paragraph 7 applies.

7. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, 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 imposed in their commercial or financial relations with such enterprises do not differ 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 carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either 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 meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded 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 taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries 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 carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed 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 wholly independently with the enterprise of which It is a permanent establishment and with all other persons.

3. In determining 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 elsewhere.

4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed 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 preclude that Contracting State from determining 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. The profits shall be attributed 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 attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

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 taxable only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 3. Whenever 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 part of the profits of the consortium or association as corresponds 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 indirectly 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 imposed between the two enterprises in their commercial or financial relations which differ 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 accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State – and taxes accordingly – 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 agrees that the adjustment made by the first mentioned State is justified both in principle and as regard the amount, shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall 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 in 1. In 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 in may also be taxed in the Contracting State of which the company paying the in is a resident and according to the laws of that State. However, if the beneficial owner of the in 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 in if the beneficial owner is a company that holds directly at least 25 per cent of the capital of the company paying the in, and b) 15 per cent of the gross amount of the in in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle 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 in are paid. In the case of Chile, this taxation includes the application of the additional tax.

3. The term "in" as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected 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 in, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the in is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the in 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 impose any tax on the paid in by the company, except insofar as such in are paid to a resident of that other State or insofar as the holding in respect of which the in 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 in paid or the undistributed profits consist wholly or 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. However, such interest may also be taxed in the Contracting State in which it arises 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) the 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 by mutual agreement settle 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 subjected to the same taxation treatment as income from money lent by the laws of the State in which the income arises. The term interest "shall not include income dealt with in Article 10 (In).

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, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, 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 deemed 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 absence 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 taxable according to the laws of each Contracting State, due regard being had 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 Contracting State may be taxed in that other State.

2. However, 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 a 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 by mutual agreement settle 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, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, 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), as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, 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 obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed 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 absence 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 taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 13 CAPITAL GAINS 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 gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such 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 taxable 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 representing the capital of the company that is a resident of the other Contracting State, may be taxed in the other Contracting State if,) the gains deriving more than 50 per cent of their value directly or indirectly 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 representing 20 per cent or more of the capital of that company.

Any other gains derived by a resident of Contracting State from the alienation of shares or other rights representing the capital of the company that is a resident of the other Contracting 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.

Notwithstanding any other provision of this paragraph, gains derived by a pension fund that is a resident of a Contracting State from the alienation of shares or other rights representing the capital of the company that is a resident of the other Contracting State shall be taxable 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 taxable 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 taxable only in that Contracting State. However, such income may also be taxed in the other Contracting State: a) if he has a fixed base regularly 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 amounting to or exceeding 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), salaries, wages and other remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding 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, the person being an employer who is not a resident of the other State, and c) the remuneration is not post by a permanent establishment or a fixed base that the person being an employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised 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. Notwithstanding 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 a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Notwithstanding the provisions of Articles 7 (Business profits), 14 (Independent personal services) and 15 (Dependent personal services), where income in respect of personal activities exercised 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 exercised.

Article 18 PENSIONS 1. Pensions arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

2. Meet and other maintenance payments paid to a resident of a Contracting State shall be taxable only in that State. However, any meet 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 design as a relief to the payer, be taxable only in the first-mentioned State.

Article 19 GOVERNMENT SERVICE 1. the Salaries, wages and other) remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority copies thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. b) However, such salaries, wages and other remuneration shall be taxable only in the other Contracting State if the services are rendered 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 for the purpose of greyscale rendering the services.


2. The provisions of Articles 15 (Dependent personal services), 16 (Directors ' fees) and 17 (Artistes and sportsmen) shall apply to salaries, wages and other remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority copies thereof.

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 greyscale for the purpose of his education or training receives 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, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable 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, carries on business in the other Contracting State through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein , 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), as the case may be, shall apply.

3. Notwithstanding 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 most 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 as a deduction from the tax on the income of that resident an amount equal to the tax paid in Chile (excluding, in the case of in , tax payable in Chile in respect of the profits out of which the in 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 nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income; c) Notwithstanding the provision of sub-paragraph a), where a company which is a resident of Portugal receives in 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 the deduction for such in included in the tax base of the company receiving in , provided that the latter company holds directly at least 25 per cent of the capital of the company paying the in and that participation was held continuously for the preceding two years, or from the date the company paying the in was constituted if that occurred later, but in this case only if the participation is held continuously throughout the same period.

2. In the case of Chile, double taxation shall be as follows: the most) 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 nevertheless, in calculating the amount of tax on other income, take into account the exempted income.

CHAPTER V SPECIAL PROVISIONS Article 23 NON-DISCRIMINATION 1. Nationals of a Contracting State shall not be subjected 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 general circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding 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 levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

3. Nothing in this Article shall be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions 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 disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable 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 wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected 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 subjected.

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, irrespective 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 presented within three years from the first notification of the action resulting 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 satisfactory service solution, to resolve the case by 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, recommend specific amendments to be made to the Convention. The Contracting States further agree that any such recommendation will be considered and discussed in an expeditious manner with a view to amending the Convention, where necessary.

5. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching 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 as 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 insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1 (Persons covered). Any information received by a Contracting State shall be treated as secret in the same manner as 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 appeals in relation to , the taxes imposed by that State. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:


the) 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 disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary 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 relates 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 No. 18,657), that are subject to the remittance tax and are required to be well-administered location by the resident in Chile, the provisions of this Convention shall not be interpreted to restrict imposition 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, notwithstanding that paragraph, any dispute between them as to whether a 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, pursuant 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 Statute) as they are in force at the time of signature of this Convention and as they may be amended from time to time without changing the general principle copies thereof.

4. Contributions in a year in respect of services rendered 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 a period not exceeding in the aggregate 60 months , be treated 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 contributing on a regular basis to the pension plan for a period ending immediately before that individual became a resident of or temporarily present in the first-mentioned State; and (b)) the competent authority of the first-mentioned State agrees that the pension plan generally corresponds to 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 the Contracting State.

5. Nothing in this Convention shall affect the taxation in Chile of the 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 appearing 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, as 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 as 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 appearing 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, as 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 as 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, Surani 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 Spanish, Portuguese and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Convention, the English text shall prevail.



For THE PORTUGUESE REPUBLIC FOR THE REPUBLIC OF CHILE, Secretary of State for Foreign Affairs and Cooperation Minister of Finance John Gomes Cravinho Nicolás Eyzaguirre Guzmán PROTOCOL TO THE CONVENTION BETWEEN THE PORTUGUESE 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 fiscal evasion with respect to taxes on income between the Republic of Chile and the Portuguese 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 introduces the tax on capital under its domestic law, the Contracting States will enter into negotiations with a view to concluding a Protocol to amend the Convention by extending its scope to include any tax on capital so introduced. 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 attributed 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 (In), 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 imposed with respect to residents of Portugal, 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 amending the Convention to re-establish the balance of benefits under the Convention.

4. Ad. Article 10 (In), paragraph 3 It is understood that the term "other rights" includes an arrangement for participation in profits.

5. Ad. Article 11 (Interest), paragraph 2, subparagraph (b)) It is agreed that, when Portugal applies a rate of 5% according to Article 6 of the EU Council Directive 2003/49/EC, such lower rate shall automatically apply with regard to Article 11, paragraph 2, subparagraph b) is 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 subparagraph.

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 (In), 11 (Interest) and 12 (Royalties) The provisions of Articles 10 (In), 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 the right or debt-claim in respect of which interest or royalty in, are paid to take advantage of those Articles by means of that creation or assignment.

7. Ad. Article 13 (Capital gains)


In the case of an alienator referred to in paragraph 4, subparagraph b) of Article 13 (Capital gains), which has owned 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 the scheme member or beneficiary in accordance with the rules of the 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 17 Circular of 2004 and in the "certificate of Fiscal Residence" used by the Competent Portuguese Authority, as 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 amendment or change of the mode of application the 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 be interpreted 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 general circumstances , the conditions made or imposed 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 notwithstanding any time limits in its domestic law.

In WITNESS WHEREOF the signatories, Surani 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 Spanish, Portuguese and English languages, all texts being equally authentic. In case of any divergence of interpretation of this Protocol, the English text shall prevail.



For THE PORTUGUESE REPUBLIC FOR THE REPUBLIC OF CHILE, Secretary of State for Foreign Affairs and Cooperation Minister of Finance John Gomes Cravinho Nicolás Eyzaguirre Guzmán