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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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MOTION FOR RESOLUTION No. 24 /X

Bearing in mind that this Convention will fundamentally allow to avoid the duo

taxation of the different categories of income earned by residents in

any of the Contracting States;

Considering that this Convention establishes rules that delimit the competence

of each State to tax the income, particularly the derivatives of goods

real estate, corporate activities, dividends, interest, royalties, income from the

dependent work and pensions;

Given that its duration will contribute to the creation of a more fiscal framework

stable and transparent for investors of both states and in that measure influence

in a positive way the development of capital flows;

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following motion for a resolution:

To approve the Convention between the Portuguese Republic and the Republic of Chile to Prevent the

Double Taxation and Preventing Tax Evasion in Tax Matters on the

Income, signed in Santiago, to July 7, 2005, the text of which in the versions

authenticated in the Portuguese, Spanish and English languages, it publishes in attachment.

Seen and approved in Council of Ministers of August 12, 2005.

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF THE

CHILE TO AVOID DOUBLE TAXATION AND PREVENT EVASION

TAX ON INCOME TAX

The Portuguese Republic and the Republic of Chile, wishing to conclude a Convention

to avoid double taxation and to prevent tax evasion in tax on the

income, agreed in the following provisions:

CHAPTER I

SCOPE OF THE CONVENTION

Article 1º

PEOPLE TARGETED

This Convention applies to the resident persons of one or both of the

Contracting States.

Article 2º

TAX VISED

1. This Convention applies to taxes on income required by

each of the Contracting States, their political or administrative subdivisions and their

local authorities, whatever the system used for their collection.

2. Are considered income taxes all tax incidents on

the total income or on elements of income, included the taxes on the

gains derived from the disposal of the securities or real estate, the taxes on the

overall amount of salaries or salaries paid by the companies, as well as the

taxes on the most-valuable ones.

3. The current taxes to which this Convention applies are, inter alia:

a) In Portugal:

(i) The Income Tax on Singular Persons (IRS);

(ii) The Income Tax of Collective Persons (IRC); and

(iii) To Derrama;

(hereinafter referred to by the designation of "Portuguese tax"); and

b) In Chile, the taxes required under the Tax Act on the

Yield, "Ley on Impuesto a la Renta" (hereinafter referred to by

designation of "Chilean tax").

4. The Convention shall also be applicable to taxes of an identical nature or

substantially similar that come into force later than the date of the signing of the

Convention and to come to add to the current or to replace them. The authorities

competent of the Contracting States shall communicate one to the other the modifications

significant introduced in the respective tax legislations.

CHAPTER II

DEFINITIONS

Article 3º

GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context requires interpretation

different:

a) the term "Portugal" means the territory of the Portuguese Republic located in the

European continent and the archipelagos of the Azores and Madeira, including the

respective territorial sea and the inland waters and well so the sea bed, the

subsoil and any other areas where the Portuguese Republic exercises

superb rights or jurisdiction, in accordance with the right

international and the laws of the Portuguese Republic;

b) the term "Chile" means the territory of the Republic of Chile, including the

respective territorial sea and the inland waters and well so the sea bed, the

subsoil and any other areas where the Republic of Chile exercises rights

superyans or jurisdiction, in accordance with international law and

laws of the Republic of Chile;

c) the expressions "a Contracting State" and "the other Contracting State"

mean Portugal or Chile, as a result of the context;

d) the term "person" comprises a natural person, a society and

any other grouping of persons;

e) the term "society" means any legal person or any

entity that is treated as a legal person for tax purposes;

f) the expressions "company of a Contracting State" and " company of the other

State Contractor " means, respectively, an explored company

by a resident of a Contracting State and a company operated by

a resident of the other Contracting State;

g) the expression "international traffic" means any transport by ship

or aircraft operated by a company of a Contracting State,

except if the said transport is carried out only between places located

in the other Contracting State;

h) the expression "competent authority" means:

(i) in Portugal, the Minister of Finance, the Director-General of Taxes

or its authorized representatives; and

(ii) in Chile, the Minister of Finance or his authorised representative;

i) the term "national" means:

(i) any natural person who has the nationality of a State

Contractor;

(ii) any legal person or association constituted of harmony with

the legislation in force in a Contracting State.

2. With regard to the application of the Convention at a given point in time by a State

Contractor, any expression therein not defined should have, unless the context

require different interpretation, the meaning assigned to it at that time by the

legislation of that State that regulates the taxes to which the Convention applies,

prevailing the interpretation resulting from tax legislation on what it decorates from another

legislation of this State.

Article 4º

RESIDENT

1. For the purposes of this Convention, the expression " resident of a State

Contractor " means any person who, by virtue of the legislation of that State, is

there subject to tax due to your domicile, your residence, the place of direction, place

of constitution or any other criterion of a similar nature, and shall also apply to

that State and to its political or administrative subdivisions or local authorities.

However, this expression does not include any person who is subject to tax in that

State only relative to the income of sources located in that state.

2. When, by virtue of the provisions of paragraph 1, a natural person is a resident of

both the Contracting States, the situation shall be resolved as follows:

a) will be considered resident only of the State in which it has a dwelling

permanent at your disposal. If you have a permanent dwelling to your

provision in both states, will be considered resident only of the

State with which they are narrower their personal relationships and

economic (centre of vital interests);

b) if the state in which it has the centre of vital interests cannot be

determined or if it does not have permanent housing at its disposal in

none of the States, shall be considered resident only of the State in which

remain customarily;

c) if it remains customary in both states or if it does not remain

usually in none of them, will be considered resident only of the

State of which it is national;

d) if it is national of both States or is not national of any of them,

the competent authorities of the Contracting States shall solve the case of

common agreement.

3. When, by virtue of the provisions of paragraph 1, a person, who is not a person

singular, be resident of both the Contracting States, the competent authorities

of the Contracting States shall seek to resolve the matter of common accord, having in

consideration of the site of the respective effective direction, of the main office or head office, of the

constitution or any other relevant factors. In the absence of such an agreement, the person

in cause shall not be able to benefit from the provisions of this Convention, ressaving

that this person may apply for the benefits provided for under Articles 23º (No.

discrimination) and 24º (Friendly Procedure).

Article 5º

STABLE ESTABLISHMENT

1. For the purposes of this Convention, the expression "stable establishment"

means a fixed installation through which the company exercises all or part of its

activity.

2. The expression "stable establishment" comprises, inter alia:

a) a place of direction;

b) a branch;

c) an office;

d) a factory;

e) a workshop; and

f) a mine, an oil or gas well, a quarry or any other

place connessed with the prospection or exploitation of natural resources.

3. The expression "stable establishment" comprises also:

a) a construction site or a construction or installation project,

as well as related supervisory activities, but only if your

duration exceeds 6 months;

b) the provision of services, including consultancy services, by a company,

through its employees or other personnel hired by the company

for the purpose, when such activities are carried out in the country during a

period or periods that sum up, in total, more than 183 days in any

period of 12 months.

For the purposes of calculating the deadlines set out in this paragraph, the activities carried out by

a company associated with another company, pursuant to the provisions of Article 9º

(Associated Companies) of this Convention, will be added to the period during the

what activities are carried out by the company, provided that the activities of the company

associated are identical or substantially similar.

4. Notwithstanding the previous provisions of this Article, the expression

"stable establishment" does not understand:

a) the facilities used solely to store, expose or deliver goods

or goods belonging to the company;

b) a deposit of goods or goods belonging to the company, maintained

solely to store them, expose or deliver;

c) a deposit of goods or goods belonging to the company, maintained

solely to be transformed by another company;

d) a fixed installation maintained solely to purchase goods or goods

or gather information for the company;

e) a fixed installation maintained solely to make advertising, provide

information or conduct scientific research for the company, as well as

any similar activity, provided that such activities are of character

preparative or auxiliary.

5. Notwithstanding the provisions of paragraphs 1 and 2, when a person-who is not a

independent agent, to which paragraph 7 applies to account of a company and

detain and habitually exercise in a Contracting State powers to conclude contracts

on behalf of the company, it is considered that this company possesses a stable establishment

in that State, in respect of any activities that such person shall exercise for

company, unless the activities of that person are limited to those referred to in paragraph 4, the

which, if exerted through a fixed installation, would not allow to consider such

fixed installation as a stable establishment in accordance with the provisions of that

number.

6. Notwithstanding the foregoing provisions of this Article, it shall be deemed to be

insurance company resident of a Contracting State, with the exception of reinsurance,

has a stable establishment in the other Contracting State whenever, by

intermediate to a representative who is not considered as independent agent in the

terms of paragraph 7, receive awards in the territory of that other State or hold risks situated

in that territory.

7. It does not consider that a company has a stable establishment in a State

Contractor for the simple fact of carrying out its business in that State through

of a broker, of a general commissioner or of any other independent agent,

provided that such persons act in the normal scope of their activity and that the conditions

accepted or imposed in their business or financial relations with such companies not

differ from those that would normally be established by independent agents.

8. The fact that a resident corporation of a Contracting State controls or is

controlled by a resident company of the other Contracting State Contracting or which exercises its

activity in that other state (whether it is through a stable establishment, or

other mode) is not, by itself, quite a lot to do from any of these societies

stable establishment of the other.

CHAPTER III

TAXATION OF INCOME

Article 6º

INCOME FROM REAL ESTATE

1. The income that a resident of a Contracting State auffers from goods

real estate (included the incomes of agricultural or forestry holdings) situated

in the other Contracting State may be taxed in that other State.

2. For the purposes of this Convention, the expression "real estate" shall have the

meaning that it is assigned by the right of the Contracting State in which such goods

are situated. The expression always comprises the accessories, the cattle and the

equipment of agricultural and forestry holdings, the rights to which the

provisions of private law relating to the ownership of immovable property, the usufruct of

real estate and the rights to variable or fixed retribution by the holding or by the

concession of the exploitation of mineral deposits, sources and other natural resources. The

ships and aircraft are not considered real estate.

3. The provisions of paragraph 1 shall apply to the income derived from direct use, of the

leasing or any other form of use of the real estate.

4. The provisions of paragraphs 1 and 3 shall also apply to income from those

real estate owned by a company and the income of the real estate used

for the exercise of independent occupations.

5. The above provisions also apply to the income of movable property

associated with immovable property and the provision of services intended for their maintenance or

health.

Article 7º

PROFITS OF COMPANIES

1. The profits of a company from a Contracting State can only be taxed

in that State, unless the company exercises its activity in the other State

Contractor by means of a stable establishment there. If the company exercises or

has exercised its activity in this way, its profits can be taxed on the other

State, but solely to the extent that they are attributable to such establishment

stable.

2. With the proviso of the provisions of paragraph 3, when a company of a Contracting State

engage in business in the other Contracting State by means of an establishment

stable therein, shall be charged, in each Contracting State, to that establishment

stable the profits this would get if it were a distinct and separate company that

to exercise the same activities or similar activities, under the same conditions or in

similar conditions, and treated with absolute independence with the company that it is

stable establishment and with any other person.

3. In determining the profit of a stable establishment it is permitted to deduct the

expenses that have been made to carry out the purposes pursued by that

stable establishment, including steering expenses and general expenses of

administration, carried out with the said end, or in the State in which that

stable establishment is situated want out of it.

4. If it is usual in a Contracting State to determine the profits attributable to a

stable establishment on the basis of a breakdown of the total profits of the company between the

its various parties, the provisions of paragraph 2 shall not prevent such Contracting State from

determine taxable profits in accordance with the usual allocation; the method of

apportionment adopted shall, however, lead to a result as with the

principles set out in this Article.

5. No profit shall be charged to a stable establishment by the fact of the simple

purchase of goods or goods, by that stable establishment, for the company.

6. For the purposes of the previous figures, the profits to be charged to the establishment

stable will be determined in each year, according to the same method, unless

there are valid and sufficient grounds to proceed differently.

7. When the profits understand elements of the income covered

separately by other Articles of this Convention, the respective provisions

will not be affected by those of this Article.

Article 8º

MARITIME AND AIR NAVIGATION

1. The profits of a company from a Contracting State from the holding

of ships or aircraft in international traffic can only be taxed in that state.

2. The provisions of paragraph 1 shall apply equally to profits from participation

in a pool , on an exploration in common or in an international operating body.

3. When companies from different countries have agreed to exercise a

air transport activity in the form of a consortium or similar association, the

provisions of paragraph 1 shall apply to the part of the profits of the consortium or the association

corresponding to the participation held in that consortium or in that association by a

resident society of a Contracting State.

Article 9º

ASSOCIATED COMPANIES

1. When

a) a company of a Contracting State participates, directly or indirectly,

in the direction, control or capital of a company of the other State

Contractor; or

b) the same persons participate, directly or indirectly, in the direction, in the

control or in the capital of a company of a Contracting State and of a

company of the other Contracting State,

and in both cases, the two companies, in their commercial or financial relations,

are connected by accepted or imposed conditions that differ from those that would be

established between independent companies, the profits that, if they did not exist these

conditions, would have been obtained by one of the companies, but they were not because of those

conditions, may be included in the profits of that company and, consequently,

taxed.

2. When a Contracting State includes in the profits of a company of that State-

and tribute in that compliance-the profits by which a company of the other State

Contractor was taxed in that other state, and the profits included in this way

constitute profits that would have been obtained by the company of the first State

mentioned, if the conditions agreed between the two companies had been the

conditions that would have been established between independent companies, that other

State, if it agrees that the adjustment made by the first mentioned State if

justifies both in terms of principle and in terms of the respective amount,

will make the appropriate adjustment of the amount of tax levied there on the profits

referred to. In the determination of this adjustment will be taken into account the other

provisions of this Convention and the competent authorities of States

Contractors consult each other, if necessary.

Article 10º

DIVIDENDS

1. The dividends paid by a resident corporation of a Contracting State to a

resident of the other Contracting State may be taxed in that other State.

2. These dividends may also be taxed in the Contracting State of which it is

resident the society that pays the dividends and in accordance with the legislation of that

State. However, if the beneficial owner of the dividends is a resident of the other

State Contracting, the tax thus established shall not be able to exceed:

a) 10% of the gross amount of dividends if the beneficial owner is a

society that detains, directly, at least 25% of the capital of the

society that pays the dividends; and

b) 15% of the gross amount of dividends, in the remaining cases.

The competent authorities of the Contracting States shall establish, by common accord,

the way to apply these limits.

This number does not affect the taxation of the society for the profits of which the dividends

are paid. In the case of Chile, this taxation includes the application of the additional tax.

3. The term "dividends", used in this Article, means the yields

arising from shares or other rights, with the exception of credits, which allow

participate in profits, as well as the income from other rights that are subject

to the same tax regime of the income of shares by the legislation of the State of which it is

resident the society that distributes them.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends,

resident of a Contracting State, engage in activity in the other Contracting State of

who is a resident of the society that pays the dividends, by means of an establishment

stable there situated, or exercise in that other state an independent profession, by means of

of a fixed installation there situated, and the participation for which the dividends

are paid are actually connected to such a stable establishment or to that

fixed installation. In such a case, the provisions of Article 7º (Profits of the

companies) or Article 14º (Independent Professions), as the case may be.

5. When a resident company of a Contracting State obtains profits or

income from the other Contracting State, that other State shall not be able to

demand no tax on dividends paid by the company, except to the extent

in which such dividends are paid to a resident of that other state or to the extent

where the participation in respect of which dividends are paid is actually

connected to a stable establishment or to a fixed installation located in that other

State, nor subject the undistributed profits of the society to a tax on the

undistributed profits, even if dividends paid or undistributed profits

consisted, in whole or in part, in profits or income from that other

State.

Article 11º

INTEREST

1. Interest accruing from a Contracting State and paid to one resident of the other

State Contracting may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State of

which originate and in accordance with the legislation of that State, but if the beneficial owner

of the interest for a resident of the other Contracting State, the tax so established

may not exceed:

a) 5% of the gross amount of interest arising from bonds or securities

regular and substantially traded in a securities market

recognized;

b) 10% of the gross amount of interest from:

(i) of loans granted by banks or insurance companies;

(ii) of the sale on credit, paid by the acquirer of machinery and of

equipment to an effective beneficiary who is the seller of the

machinery and equipment;

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

The competent authorities of the Contracting States shall establish, by common accord,

the way to apply these limits.

3. The term "interest", used in this Article, means the income of credits

of any nature, with or without a mortgage guarantee, and the yields of the debt

public and other credit securities, as well as the income that is subject to the

same tax regime of loan yields under state law

of which they derive the yields. The expression "interest" does not understand income

covered by the provisions of Article 10º (Dividends).

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest,

resident of a Contracting State, engage in activity in the other Contracting State of

which originate the interest, by means of a stable establishment there, or exercise

in that other state an independent profession, by means of a fixed installation there

situated, and the credit for which interest is paid is actually

linked to that stable establishment or to that fixed installation. In that case, they are

applicable the provisions of Article 7º (Profits of companies) or Article 14º

(Independent Occupations), as the case may be.

5. Interest shall be deemed to arise from a Contracting State when the debtor

be a resident of that state. However, when the debtor of interest, whether or not

resident of a Contracting State, have in a Contracting State an establishment

stable or a fixed installation in relation to which there has been contracted the obligation

by which interest is paid and such a stable establishment or such fixed installation

support the payment of these interest, such interest is considered from the State

in which the stable establishment or the fixed installation are situated.

6. When, due to existing special relationships between the debtor and the beneficiary

effective or between both and any other person, the amount of interest exceeds, by

any reason, the amount that would be agreed between the debtor and the beneficial owner

in the absence of such relations, the provisions of this Article shall apply only to

this last amount. In such a case, the surplus portion may continue to be taxed from

agreement with the legislation of each Contracting State, taking into account the other

provisions of this Convention.

Article 12º

ROYALTIES

1. The royalties coming from a Contracting State and paid to a resident of the

another Contracting State may be taxed in that other State.

2. However, these royalties can also be taxed in the State

The contractor to which they originate and in accordance with the legislation of that State, but if the

beneficial owner of the royalties is resident of the other Contracting State, the tax

so established will not be able to exceed:

a) 5% of the gross amount of the royalties relating to the use or the granting of the

use of any industrial, commercial or scientific equipment;

b) 10% of the gross amount of the royalties , in the remaining cases.

The competent authorities of the Contracting States shall establish, by common accord,

the way to apply these limits.

3. The term "royalties", used in this Article, means the retributions of

any nature received for remuneration for the use or the granting of the use

of an author's right on a literary, artistic or scientific piece of work, including the

cinematographic films, as well as films, recordings or any other means of

image or sound reproduction, of a patent, of a manufacturing mark or of

trade, a drawing or a model, a plan, a formula or a

secret process or other intangible goods, as well as by use or by the granting

of the use of an industrial, commercial or scientific equipment, or by information

relating to an experience gained in the industrial, commercial or scientific sector.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties ,

resident of a Contracting State, engage in activity in the other Contracting State of

which originate the royalties , by means of a stable establishment located there, or exercise

in that other state an independent profession, by means of a fixed installation there

situated, and the right or well relatively to which the royalties are paid are

actually connected to that stable establishment or to that fixed installation. In this

case, the provisions of Article 7º (Profits of companies) or Article 14º are applicable

(Independent Occupations), as the case may be.

5. The royalties consider themselves coming from a Contracting State when the

debtor be a resident of that state. However, when the debtor of the royalties , be

or non-resident of a Contracting State, have in a Contracting State a

stable establishment or a fixed installation in relation to which there has been

contraption the obligation by which the royalties are paid, and such a stable establishment or

this fixed installation supports the payment of these royalties , such royalties are

considered from the State in which the establishment is stable or the installation

fixed are situated.

6. When, due to existing special relationships between the debtor and the beneficiary

effective or between both and any other person, the amount of royalties , having in

account for the use, the right or the information by which they are paid, exceeds the amount that

would be agreed between the debtor and the beneficial owner, in the absence of such relationships, the

provisions of this Article shall apply only to the latter amount. In this

case, the surplus part may continue to be taxed in accordance with the legislation of

each Contracting State, taking into account the other provisions of this Convention.

Article 13º

MAIS-VALIAS

1. The gains that a resident of a Contracting State auffers from the disposal of goods

real estate situated in the other Contracting State may be taxed in that other

State.

2. The gains from the disposal of the securities that are part of the

active establishment of a stable establishment that a company of a Contracting State has

in the other Contracting State or of transferable securities to a fixed installation of which

a resident of a Contracting State possesses in the other Contracting State for the

exercise of an independent profession, including the gains from the divestance

of this stable establishment (isolated or with the company's ensemble) or that

fixed installation, can be taxed in that other state.

3. The gains from the disposal of ships or aircraft used in traffic

international, or of securities allocated to the operation of such vessels or aircraft,

may only be taxed in the Contracting State that the alienant is resident.

4. The gains that a resident of a Contracting State obtains from the divestance of

shares or other representative rights of the capital of a resident company of the

another Contracting State, may be taxed in the other Contracting State, provided that

a) the gains are from the disposal of shares whose value is resulting,

directly or indirectly, in more than 50%, of situated real estate

in that other Contracting State; or

b) the alienant has held, at any time during the period of twelve

months preceding the divestance, directly or indirectly, shares or other

rights that represent 20% or more of the capital of that society.

Any other gains obtained by a resident of a Contracting State by the

divestory of shares or other rights representative of the capital of a society

resident of the other Contracting State may also be taxed in that other State

Contractor, but the tax thus established will not be able to exceed 16% of the amount of the

gain.

Notwithstanding any other provision of this number, the gains obtained by a fund

of pensions resident of a Contracting State, and arising from the disposal of shares

or of other rights representative of the capital of a resident society of the other

State Contractor can only be taxed in the first Contracting State

mentioned.

5. The gains from the disposal of any other goods other than the

mentioned in the preceding paragraphs can only be taxed in the Contracting State of

that the alienant is a resident.

Article 14º

INDEPENDENT OCCUPATIONS

1. The income earned by a natural person who is a resident of a State

Contractor for the exercise of a liberal profession or other activities of a character

independent can only be taxed in that state, however, those yields

may also be taxed in the other Contracting State:

a) if that person customarily dispossesses in the other Contracting State of

a fixed installation for the exercise of its activities; in this case, only

may be taxed in the other Contracting State on the part of the income which

is attributable to that fixed installation; or

b) if that person remains in the other Contracting State for a period

or periods that exceed, in total, 183 days, in any period of twelve

months with start or term in the tax year concerned; in this case, it can only be

taxed in the other State the share of income earned from the activities

exerted in that other state.

2. The expression "liberal professions" covers, in particular, activities

independent of scientific, literary, artistic, educational or pedagogical character, well

as the independent activities of doctors, lawyers, engineers, architects,

dentists and accountants.

Article 15º

DEPENDENT PROFESSIONS

1. With proviso of the provisions of Articles 16º (percentages of members of

advice), 18º (Pensions) and 19º (Public Remunerations), wages, salaries and

other remunerations obtained from a job by a resident of a State

Contractors can only be taxed in that state, unless employment is

exercised in the other Contracting State. If the employment is exercised there, the remunerations

correspondents can be taxed in that other state.

2. Notwithstanding the provisions of paragraph 1, the remuneration obtained by a resident of a

State Contracting Officer of a job exercised in the other Contracting State may only be

taxed in the first mentioned state if:

a) the beneficiary remains in the other State for a period or periods

that do not exceed, in total, 183 days in any period of twelve months

with start or term in the tax year concerned; and

b) the remunerations are paid by an employer or in the name of

an employer who is not a resident of the other State; and

c) the remuneration shall not be borne by a stable establishment or

by a fixed installation that the employer has in the other State.

3. Notwithstanding the previous provisions of this Article, the remuneration of

a job exercised on board a ship or an aircraft used in traffic

international by a company of a Contracting State may be taxed in that

State.

Article 16º

PERCENTAGES OF MEMBERS OF COUNCILS

The percentages, passwords of presence and other similar remunerations obtained by

a resident of a Contracting State in the capacity of a member of the board of

administration, supervisory board, or other similar body of a society

resident of the other Contracting State may be taxed in that other State.

Article 17º

ARTISTS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14º (Independent Professions) and 15º

(Dependent occupations), the income earned by a resident of a State

Contractor in the quality of professional of spectacles, such as theatre artist,

cinema, radio or television, or musician, as well as of sportsman, coming from its

personal activities exerted, in that capacity, in the other Contracting State, may be

taxed in that other state.

2. Notwithstanding the provisions of Articles 7º (Professions of the Companies), 14º (Professions

independent) and 15º (Dependent Professions), the income from the activity carried out

personally by the professionals of spectators or sportsmen, in that capacity,

assigned to one other person, may be taxed in the Contracting State in which they are

exerted such activities of the professionals of spectators or of sportsmen.

Article 18º

PENSIONS

1. Pensions arising from a Contracting State and paid to a resident of the

another Contracting State may only be taxed in that other State.

2. Food pensions and other subsistence benefits paid to a resident

of a Contracting State may only be taxed in that State. However, pensions

of food and other subsistence benefits paid by a resident of a State

A contractor to a resident of the other Contracting State, can only be taxed at the

first mentioned State, in so far as the payer is not entitled to the

respective deduction.

Article 19º

PUBLIC REMUNERATION

1. (a) The wages, salaries and other remunerations, excluding pensions,

paid by a Contracting State or by a political subdivision or

administrative or local authority to a natural person, as a result

of services provided to that State or to that subdivision or autarky, only

can be taxed in that state.

b) wages, salaries and other remuneration can only, however, be

taxed in the other Contracting State if services are provided in that

State and if the natural person is a resident of that State:

(i) being its national; or

(ii) that it has not become its resident solely for the purpose of providing the

so-called services.

2. The provisions of Articles 15º (Dependent Professions), 16º (Percentages of

members of boards) and 17º (Artists and Desportists) applies to wages,

maturities and other remuneration, paid as a result of services provided in

connection to a commercial or industrial activity exercised by a State

Contractor or by a political or administrative subdivision or local municipality.

Article 20º

STUDENTS

The importances that a student, an apprentice or a trainee who is or has been,

immediately prior to their stay in a Contracting State, resident of the other

State Contracting and whose stay in the first mentioned State has as its sole

end your studies or your training, receive to cope with the expenses with your

subsistence, studies or training are not taxed in that state, provided that

provenham from sources situated outside that state.

Article 21º

OTHER INCOME

1. The elements of the income of a resident of a Contracting State, donde

want provenham, not covered by the previous Articles of this Convention only

can be taxed in that state.

2. The provisions of paragraph 1 shall not apply to income, which is not income of goods

real estate as they are defined in Article 6º (2) (Earnings of the goods

real estate), if the beneficiary of that income, resident of a Contracting State,

engage in activity in the other Contracting State by means of a stable establishment

in it situated or exercise in that other state an independent profession through a

fixed installation on it situated, being the right or the property, in relation to which the

income is paid, effectively connected to that stable establishment or installation

fixed. In this case, the provisions of Article 7º (Profits of companies) or of the

Article 14º (Independent Professions), as the case may be.

3. Notwithstanding the provisions of paragraphs 1 and 2, the elements of the yield of a

resident of a Contracting State, not covered by the previous Articles of the present

Convention and coming from the other Contracting State, may also be taxed

in that other state.

CHAPTER IV

ELIMINATION OF DOUBLE TAXATION

Article 22º

ELIMINATION OF DOUBLE TAXATION

1. In the case of Portugal, double taxation will be removed as follows:

a) When a resident of Portugal obtains income that, according to the

provisions of this Convention, can be taxed in Chile, Portugal

will deduct from the income tax of that resident an importance

equal to the tax paid in Chile (excluding, in the case of dividends, the

required tax in Chile regarding the profits that dividends are

paid). The importance deduced may not, however, exceed the fraction of the

income tax, calculated before the deduction, corresponding to the

income that can be taxed in Chile;

b) Where, in accordance with the provisions of this Convention, the income

obtained by a resident of Portugal are exempt from tax in this

State, Portugal may, notwithstanding, when calculating the tax quantitation

on the rest of the income of that resident, take into account the income

isento;

c) Notwithstanding the provisions of (a), when a resident corporation of

Portugal to receive dividends from a resident society of Chile, and which is

subject and not exempt from the corporate profits tax (Tax of

First Category) in Chile, Portugal will allow for deduction of dividends

included in the tax base of the society that receives them, provided that this

last society detains directly at least 25% of the capital of the

society that pays the dividends and that participation has been held from

uninterrupted form during the two preceding years, or since the date of the

constitution of the society that pays the dividends, if it has occurred

subsequently, but in this case solely if the participation is held

uninterruptedly during the same period of time.

2. Regarding Chile, double taxation will be eliminated as follows:

a) Residents in Chile who obtain income that, according to the

provisions of this Convention, have been subject to taxation in

Portugal, can impute tax paid this way in the Chilean tax

due to the same yield, with the proviso of the provisions

applicable from the legislation of Chile. The provisions of this paragraph shall apply to all

the income referred to in this Convention;

b) Where, in accordance with the provisions of this Convention, the income

obtained by a resident of Chile are exempt from tax in Chile, the

Chile may, notwithstanding, when calculating the quantitative of the tax on the rest

of the income of that resident, take into account the exempted income.

CHAPTER V

SPECIAL PROVISIONS

Article 23º

NON DISCRIMINATION

1. Nationwide nationals of a Contracting State shall not be subject in the other State

Contractor for no taxation or obligation with it related to different or more

gravy than those to which they are or may be subject to nationals of that other

State that they find themselves in the same circumstances, in particular with regard to the

residence. Notwithstanding the one set out in Article 1º (Targeted Persons), this provision

it will also apply to people who are not residents of one or both of the States

Contractors.

2. The taxation of a stable establishment that a company of a State

Contractor to have in the other Contracting State shall not be in that other State less

favorable than that of the companies in that other State who exercise the same

activities.

3. The provisions of this Article shall not be construable in the sense of obliging

a Contracting State to be granted to the residents of the other Contracting State the

personal deductions, rebates and reductions for tax purposes assigned as a function of the

marital status or family charges granted to its own residents.

4. Unless the provisions of paragraph 1 of Article 9º (associated Companies) are applicable, in the para.

6 of Article 11º (Juros) or in Article 12º (6) ( Royalties ), the interest, royalties and other

importances paid by a company from a Contracting State to one resident of the other

State Contracting will be deductible, for the purpose of the determination of taxable profit of

such a company, under the same conditions as if they were paid to a resident of the former

State mentioned.

5. The resident companies of a Contracting State whose capital, total or

partially, directly or indirectly, whether held or controlled by one or more

residents of the other Contracting State will not be subject, in the first State

mentioned, to no taxation or obligation with it related to it different or more

gravy than those to which they are or may be subject to similar companies

of that first mentioned state.

6. In the present Article, the term "taxation" means the taxes that are the subject of the

this Convention.

Article 24º

FRIENDLY PROCEDURE

1. When a person considers that the measures taken by a State

Contractor or by both the Contracting States conduct or be able to conduct, in

relation to you, to a taxation not in accordance with the provisions of this Convention,

be able to, regardless of the resources established by the national legislation of those

States, submit your case to the competent authority of the Contracting State of which it is

resident or, if your case is understood in paragraph 1 of Article 23º (No.

discrimination), to the competent authority of the Contracting State of which it is national. The

case should be submitted within three years from the date of the first

communication of the measure that gives cause to taxation not conforming to the provisions of the

Convention.

2. The competent authority, if the complaint appears to be founded and is not

in conditions of giving you a satisfactory solution, will strive to resolve the issue

through friendly agreement with the competent authority of the other Contracting State, the

end of avoidance of taxation not in accordance with the Convention.

3. The competent authorities of the Contracting States shall endeavour to resolve,

through friendly arrangement, the difficulties or the doubts to which it can give way to

interpretation or the application of the Convention.

4. Considering that the main purpose of the Convention is to avoid double taxation

international, the Contracting States agree that, in the case of the provisions of the

Convention to be used in such a way that they grant benefits not contemplated nor

intended, the competent authorities of the Contracting States should recommend,

under the friendly procedure, specific changes to be made to the Convention.

The Contracting States shall also agree that a recommendation in these terms shall be

appreciated and discussed expeditifully with a view to making the amendment of the Convention,

when necessary.

5. The competent authorities of the Contracting States shall be able to communicate

directly to each other in order to reach agreement in the terms indicated in the figures

previous.

Article 25º

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange among themselves the

information necessary to apply the provisions of this Convention or of the laws

internal of the Contracting States relating to taxes covered by the Convention, in the

measure in which the taxation provided in them is not contrary to the provisions of the present

Convention. The exchange of information is not restricted by the provisions of Article 1º

(Visged people). The information obtained by a Contracting State will be

deemed secret, in the same way as the information obtained on the basis of

internal legislation of that State, and can only be communicated to persons or authorities

(including courts and administrative authorities) in charge of liquidation or the

collection of the taxes required by that State, or of the declarative procedures or

executives relating to these taxes, or the decision of appeals regarding these

taxes. Such persons or authorities shall use the information thus obtained only

for the purposes referred to. Such information may be disclosed in the course of

public hearings of courts or in court decisions.

2. The provisions of paragraph 1 shall not in any case be construable in the sense of imposing

to a Contracting State the obligation to:

a) take administrative measures contrary to its legislation and practice

administrative or those of the other Contracting State;

b) provide information that cannot be obtained on the basis of your

legislation or in the context of its normal administrative practice or those of the

another Contracting State;

c) transmit revealing information of secrets or commercial processes,

industrial or professional, or information whose communication is contrary

to the public order.

3. If a Contracting State requests information in the terms of the provisions of the

this Article, the other Contracting State shall obtain the requested information from the

even if it would do so if it was in cause of its own taxation, even if that

another state not in need, at that time, of such information.

Article 26º

MEMBERS OF DIPLOMATIC MISSIONS AND

FROM CONSULAR POSTS

The provisions of this Convention shall not prejudice the tax privileges of which

benefit the members of diplomatic missions or consular posts by virtue of

general rules of international law or provisions of special agreements.

Article 27º

OTHER PROVISIONS

1. Regarding the funds or common investment accounts [ pooled investment

accounts or funds ] (as, for example, the Capital Investment Fund

Foreign, Law No. 18,657), subject to tax on remittances and whose administration

must compulsorily compete with a resident in Chile, the provisions of this Convention

will not be interpreted to restrict the imposition by Chile of the tax on

consignments made from those accounts or funds in connection with investments in

site assets in Chile.

2. For the purposes of paragraph 3 of Article XXII (Consultation) of the GATS-General Agreement on the

Trade in Services, the Contracting States agree that, notwithstanding the said

provision, any dispute arising as to the question of whether a particular

measure enrolled in the scope of this Convention, it may only be

submitted to the Council for Trade in Services, as provided for in the said number,

upon the consent of both the Contracting States. Any doubt as to the

interpretation of this provision shall be resolved in accordance with the provisions of paragraph 3 of the Article

24º (Friendly Procedure) or, in the absence of agreement under that procedure,

pursuant to any other procedure that comes to be agreed upon by both

Contracting States.

3. The provisions of this Convention shall not affect the application of the current

provisions of the Chilean legislation DL 600 (Status of Foreign Investment) in

vigour on the date of the signing of this Convention and with any changes which

come to be introduced later, as long as they do not change their general principle.

4. The contributions made in a given year, by services provided in that year and

paid by, or on account of, a natural person resident of a Contracting State or

which remains temporarily in that state, for a recognized pension fund

for tax purposes in the other Contracting State will be treated for tax purposes in the

first mentioned state, for a period that does not exceed in total 60 months, of the

same mode as the contributions paid to a recognized pension fund for

tax effects in that first mentioned state, if:

a) the person concerned has contributed regularly to the fund of

pensions for a period of time that has ended immediately

before that person becomes a resident of the first mentioned state or

from there to remain temporarily; and

b) the competent authority of the first mentioned State agrees that the

pension fund corresponds, generally, to a pension fund

recognized for tax purposes by that State.

For the purpose of this number, the expression "pension fund" comprises a fund of

pensions created under the social security scheme of a Contracting State.

5. The provisions of this Convention shall not affect taxation in Chile of a

resident of Portugal, regarding the profits attributable to a stable establishment

situated in Chile, in the case of the Tax of First Category or the Tax

Additional, but only if the First Category Tax is deductible in the calculation of the

Additional Tax.

CHAPTER VI

FINAL PROVISIONS

Article 28º

ENTRY INTO FORCE

1. The Contracting States shall notify each other in writing, by diplomatic means,

compliance with the formalities required by the respective legislation on entry

in force of this Convention. This Convention shall enter into force on the date of

last of the said notifications.

2. The provisions of this Convention shall be applicable:

a) In Portugal:

(i) as to the taxes due at the source whose operative fact arises in or

after January 1 of the calendar year immediately following that of the

entry into force of this Convention;

(ii) as to the remaining taxes, in respect of income

produced in any fiscal year with start on or after 1 of

January of the calendar year immediately following that of the entry into force of the

this Convention; and

b) In Chile:

on taxes on income earned and on the

amount of paid, credited to account, placed at the disposal or

accounted for as an expense, on or after January 1 of the year

civil immediately following that of the entry into force of the present

Convention.

Article 29º

COMPLAINT

1. This Convention shall remain in force for a period of time

undetermined, but any of the Contracting States may send to the other State

Contractor a notice of denunciation, in writing, by diplomatic way, on or before 30

of June of any calendar year after the expiration of a period of five years from the

date of its entry into force.

2. This Convention shall cease to apply:

a) In Portugal:

(i) as to the taxes due at the source whose operative fact arises in or

after January 1 of the calendar year immediately following the year

specified in the said notice of denunciation;

(ii) as to the remaining taxes, in respect of income

produced in the fiscal year with commencement on or after January 1 of the

calendar year immediately following the year specified in the said

notice of denunciation;

b) In Chile:

on taxes on income earned and on the

amount of paid, credited to account, placed at the disposal or

accounted for as an expense, on or after January 1 of the year

civil immediately following the year specified in the said notice of

denunciation.

IN TESTIMONY OF which the undersigned, duly authorized for the

effect, they have signed this Convention.

MADE IN SANTIAGO, at the seven days of the month of July two thousand and five, in

duplicated, in the Portuguese, Spanish and English languages, being all texts

equally valid. In the event of a divergence of interpretation of this Convention, the

english text will prevail.

BY THE PORTUGUESE REPUBLIC BY THE REPUBLIC OF CHILE

Secretary of State for Business

Foreigners and Cooperation

Minister of Finance

João Gomes Cravinho

Nicolás Eyzaguirre Guzmán

PROTOCOL TO THE CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND

REPUBLIC OF CHILE TO AVOID DOUBLE TAXATION AND PREVENT

A TAX EVASION IN INCOME TAX

At the time of the signing of the Convention between the Portuguese Republic and the Republic

of Chile to avoid double taxation and prevent tax evasion in respect of

income tax, the signatories agreed on the following provisions, which

are an integral part of the Convention.

1. Ad Article 2º (Taxes targeted)

If, after the date of the entry into force of the Convention, one of the Contracting States

to introduce a heritage tax under the respective domestic legislation, is

agreed that the Contracting States shall hold negotiations with a view to the celebration of

a Protocol to amend the Convention, in the sense of the extension of its scope of

mode to understand any tax on the heritage that is introduced. The

terms of the said Protocol should take into consideration the agreements between each of the

Contracting States and third States States relating to the elimination of double taxation

of the heritage.

2. Ad article 3 of Article 7º (Profits of companies)

It is understood that the provisions of Article 7º (3) (Profits of companies) shall only apply since

that the expenditure may be attributable to the stable establishment in compliance

with the provisions of the tax legislation of the Contracting State in which the establishment

stable is situated.

3. Ad Article 2 (Dividends) Article 10º (Dividends)

Regarding the application of the additional tax under the legislation of Chile, it is

agreed that:

(i) in the case that the first-rate tax is no more than fully

deductible in the calculation of the amount of the additional tax required; or

(ii) in the case of the rate of the additional tax applicable to the residents of Portugal,

as provided for in accordance with the provisions of Article 4º (Resident) of the

this Convention, exceeds 42%,

the Contracting States shall consult with a view to the amendment of the Convention in the

a sense of re-establishing the balance of the benefits provided for under the Convention.

4. Ad article 3 of Article 10º (Dividends)

It is understood that the expression "other rights" includes an agreement for participation in the

profits (association in participation).

5. Ad Paragraph 2 (b) of Article 11º (Interest)

It is agreed that, when Portugal applies a rate of 5% under Article 6º of the

Directive 2003 /49/CE of the Council of the EU, that lower rate will apply

automatically, with respect to Article 11º, paragraph 2 (b), in relation to interest

coming from Chile and whose beneficial owner is a resident of Portugal, and to the

interest coming from Portugal and whose beneficial owner is a resident of Chile, in the

same conditions as if the said lower rate had been specified in the

mentioned above.

The competent authority of Portugal shall inform, without delay, the competent authority

of Chile that the requirements for the application of this point have been brought together.

6. Ad Articles 10º (Dividends), 11º (Interest) and 12º (Royalties)

The provisions of Articles 10º (Dividends), 11º (Interest) and 12º ( Royalties ) will not be applicable

whether the main objective or one of the main objectives of any related person

with the creation or assignment of a right or a credit in respect of which they are paid

the dividends, the interest or the royalties is to benefit from the provisions of these Articles

upon the said creation or assignment.

7. Ad Article 13º (Mais-valias)

In the case of an alienant referred to in Article 13º (4) (b) (Mais-valias), which

held the shares or other rights divested for a period of more than twelve months

and whose usual business does not consist of the sale and purchase of shares, the tax levied

may not exceed 16% of the amount of the gain.

In any case, it is considered that the alienant does not carry out the usual activity of

sale and purchase of shares when the participation in the capital of the society is higher than

50%.

8. Ad Article 18º (Pensions)

It is understood that the term "pensions" includes the payments made for a plan to

pensions or a beneficiary in accordance with the standards of a plan

recognised for tax purposes as a pension plan by the Contracting State of

that the payments come from.

9. Ad Article 22º (Elimination of double taxation)

(i) It is agreed that the information set out in the Circular 17 forms of

2004, from Chile, and the "Certificate of Fiscal Residence" used by the

competent Portuguese authority, in force at the date of the signature of the present

Convention, are sufficient for the purposes of the implementation of the provisions of the

Convention.

(ii) Any rectification or amendment to the manner of application above agreed

will be resolved by mutual agreement between the competent authorities.

10. Ad Article 23º (Non-discrimination)

It is understood that the provisions of Article 23º (4) (Non-discrimination) should not be

interpreted to prevent the application by a Contracting State of the

provisions of the respective domestic legislation relating to the sub-capitalization, save in the

cases in which the associated companies demonstrate that, due to the characteristics

special needs of their activities or their specific economic circumstances, the

conditions established or imposed between these companies comply with the

principle of absolute independence (arm's length principle).

11. Ad article 2 of Article 24º (Friendly Procedure)

In the case of Portugal, any agreement reached will be applied independently of the

deadlines set out in their domestic law.

IN TESTIMONY OF WHICH the undersigned, duly authorized for the

effect, signed the present Protocol.

MADE IN SANTIAGO, at the seven days of the month of July two thousand and five, in

duplicated, in the Portuguese, Spanish and English languages, being all texts

equally valid. In the event of a divergence of interpretation of this Protocol, the

english text will prevail.

BY THE PORTUGUESE REPUBLIC BY THE REPUBLIC OF CHILE

Secretary of State for Business

Foreigners and Cooperation

Minister of Finance

João Gomes Cravinho

Nicolás Eyzaguirre Guzmán

CONVENIO BETWEEN LA REPUBLICA PORTUGUESE Y LA REPUBLICA DE

CHILE TO AVOID LA DOBLE IMPOSICION Y TO PREVENT LA

TAX EVASION EN RELACION AL IMPUESTO A LA RENTA

La Republic Portuguese y la Republic de Chile, wishing to conclude un Convenio for

avoid la doble imposición y to prevent la evasión fiscal en relación al impuesto a la

renta

Han agreed lo siguiente:

CAPITCHAPTER I

AMBITO DE APPLICACION DEL CONVENIO

Artículo 1

PERSONAS PURCHASED

This Convenio applies to las personas residents of uno that of both States

Contractors.

Artículo 2

IMPUTS PURCHASED

1. This Convenio applies to them impugties over la renta exigibles by each uno of

the Contracting States, cualquiera that sea el system de exacción.

2. If considered impugn about la renta los que gravan la totalidad de la renta o

cualquier part of la misma, includ los impubasts on las greancias derived from la

enajenación de bienes muebles the inmuebles, los impubasts about el import of sueldos o

salarios paid by las companies, así as los impukets about las plusvalías.

3. Los impukets actuales to them that applies this Convenio son, en particular:

a) en Portugal,

(i) El impuesto on la renta de las personas naturales ( " Tax

on the Throughput of Singular People-IRS " );

(ii) El impuesto over la renta de las societies ( " Tax on the

Income of Collective Persons-IRC) " ; y

(iii) La overtasa local del impuesto over la renta de las societies

("Derrama");

(en adelante named "Impuesto Portuguese"); y

b) en Chile, los impukets laid out en la " Ley about Impuesto a la

Renta "(en adelante named" Chilean Impuesto ").

4. El Convenio shall also apply to them impugned by idéntic naturalness o

sustancially analogous that if stablezcan con posterioridad a la closes de la firma del

mismo, y that se añadan to los actuales the les sustituyan. Las competent authorities of

los Contracting States to communicate with each other, las modiaciones sustanciales

that if hayan introduces en sus respective legislationsimpositive.

CAPITCHAPTER II

DEFINICIONES

Artículo 3

DEFINICIONES GENERALES

1. The los efectos of this Convenio, unless of su context if infiera una

interpretación different:

a) el terminus "Portugal" means el territorio de la Portuguese Republic

situated en el continent europeo, los archipiélagos de ble y de

Wood, and incluye su mar territorial y aguas interiors así as el fondo

marino, el subsuelo y cualquier otra area donde la republic Portuguese

ejerce derechos de superanía o jurisdicción de conformidad con el

derecho international y la legislación Portuguese.

b) el terminus "Chile" means la Republic of Chile and incluye su mar

territorial y aguas interiors así as el fondo marino, el subsuelo y

cualquier otra area donde la Republic de Chile ejerce derechos de

superanía the jurisdicción de conformidad con el derecho international y la

legislación chilena.

c) las expresiones "un Contracting State" y " el otro Contracting State Contracting

significan Chile y Portugal, según lo requiera el context;

d) el terminus "persona" comprende las personas naturales, las societies y

cualquier otra grouación de personas;

e) el terminus "sociedad" means cualquier persona legal the cualquier

entidad that considers itself to be legal persona to impositive efects;

f) las expresiones "company de un Contracting State" y " company del otro

State Contracting " signian, respectively, una company exploded

by un resident of un State Contracting y una una company blown up by

un resident del otro Contracting State;

g) la expresión "international trafficking" means all transport carried out

by un buque the aircraft blown up by una un State company

Contractor, unless cuing ese transport es carried out welly between

punts situated en el otro Contracting State;

h) la expresión "autoridad competent" means:

(i) en Portugal, el Minister de Hacienda, el Director General de

Impukets ( "Director-General of Taxes" ) the el representative

authorised of baskets; y

(ii) en Chile, el Minister de Hacienda o su authorised representative;

i) el terminus "national" means:

(i) cualquier persona natural that posea la nationalidad de un State

Contractor; the

(ii) cualquier legal persona the asociación constituted as a la

legislación vigente de un Contracting State.

2. For la applicación del Convenio by un Contracting State, en cualquier

moment, cualquier expresión in the definite en el mismo tendrá, unless of su

context if infiera una interpretación different, el meaning that, en ese moment, le

ascriya la legislación de ese State relative to los impukets that son object del

Convenio, prevalent el meaning ascribed by la legislación impositive about el

that resulted from otras ramas del Derecho de ese State.

Artículo 4

RESIDENT

1. los efectos de este Convenio, la expresión " resident of un State

Contractor " means all persona that, en virtud de la legislación de ese State, esté

subject to imposición en el mismo by razón de su domicilio, residencia, home of

dirección, place de constitución o cualquier otro criterio de naturaleza analogous and incluye

también al propio State y a cualquier subdivisión politics the administrative the autoridad

location. Sin embargo, this expresión no incluye a las personas that estén subjected to

imposición en ese State exclusively by la renta que obtengan of fuentes situated

en el cited State.

2. Cuando, en virtud de las disposiciones del párrafo 1, una persona natural sea

resident of both Contracting States, su situación se resolves de la siguiente

the manera:

a) dicha persona will be considered resident sobo del State donde tenga una

vivienda permanent to su disposición; si tuviera vivienda permanent a

su disposición en both states, if you will consider resident sobo del State

con el que mantenga relates personales y economic bad premieres

(centre of intereses vitales);

b) si no pudiera determinate el State en el que dicha persona tiene el

centre of sus intereses vitales, the si in the tuviera una vivienda permanent a

su disposición en ninguno de los states, will consider itself to be resident

del State donde viva habitually;

c) si viviera habitually en both states, the in the lo hiciera en ninguno de

ellos, will consider itself resident socio del State del que sea national;

d) si fuera national of both states, the in the lo fuera of ninguno de ellos, las

competent authorities of los Contracting States resolverán el caso

upon un procedurum of acuerdo mutuo.

3. Cuando en virtud de las disposiciones del párrafo 1 una persona, which in the sea

natural persona, sea resident of both Contracting States, las authorities

competent of los Contracting States deberán hacer lo posible by solving el case

upon acuerdo mutuo, teniendo en consideración la headquarters de dirección, la workshop

central the main, el place de constitución o cualquier otro pertinent factor. En

auses of ese acuerdo, dicha persona in the tendrá derecho the ninguno de los beneficios

contemplated by this Convenio, save en cuanto puede require los beneficios de los

Artícles 23 (No discriminación) y 24 (Proceedings of acuerdo mutuo).

Artículo 5

PERMANENT STABLECOIN

1. The efectus of this Convenio, la expresión "permanent stacecimiento" means

un place fijo de dealers by el cual una company performs all the part of su

actividad.

2. La expresión "permanent staishimiento" comprende, en special:

a) las sedes de dirección;

b) las branches;

c) las workshops;

d) las factories;

e) los talleres; y

f) las mines, los pozos of oil o de gas, las canteras o cualquier otro

place en relación a la exploración o explotación of naturales features.

3. La expresión "permanent stablemiento" también incluye:

a) una oeuvre o proyecto de construcción, instalación o montaje y las activities

of supervisión relating con ellos, pero cuando dicha obra work,

proyecto de construcción o actividad tenga una duración superior to six

months;

b) la prestación de servicios by the part of una company, includ los servicios

of consultans, by intermedio de empleados u otras personas naturales

ordered by la company for ese fin en el case that tales

activities prosigan en el country during un period the periods that en total

excedan of 183 días, within un period cualquiera of sweet months.

A los efectos del calculus de los limites temporales to which refide this paddle,

las activities carried out by una company asociada a otra company en el meaning del

artículo 9 (Asociated Companies) of this Convenios, erán aggregates al period during

el cual son carried out las activities by la company de la que es asociada, si las

activities of both companies son idénical the sustancially similar.

4. In spite lo dispuesto previously en this artículo, one considers that la

expresión "permanent stablecoin" in the incluye:

a) la utilización de instalaciones con el sole fin de almacenar, exponer o

deliver biennials the mercancías belonging to la company;

b) el mantenimiento de un deposit of bienes the mercancías pertaining to

la company con el sole fin de almacenarlas, exponerlas o entregarlas;

c) el mantenimiento de un deposit of bienes the mercancías pertaining to

la company con el sole fin de que sean transformed by otra company;

d) el mantenimiento de un place fijo de negotios con el sole fin de

buy bienes the mercancías, o de recoger información, for la company;

e) el mantenimiento de un place fijo de negotios con el sole fin de hacer

publicidad, suministrar información o carry out scientific investigations

for la company y cualquier otra actividad similar, cuando esas

activities tengan un character preparatorio the ancillary.

5. In spite lo dispuesto en los párrafos 1 y 2, cuando una persona, distinct from un

independiente agent al que le sea applicable el párrafo 7, actue per cuenta de una company

y ostente y ejerza habitually en un State Contracting powers that la faculten to

conclude contracts by cuenta de la company, if you will consider that esa company tiene un

permanent stacecimiento en ese State respect of cualquiera of las activities which

dicha persona realice for la company, unless las activities of esa persona se

limiten to las mentioned en el párrafo 4 y which, from being carried out by medio de un place

trade fijo, dicho place fijo de dealers in the fuere considered as un

permanent stacimiento de acuerdo con las disposiciones de ese párrafo.

6. In spite of the previous disposals of this article, one considers that una

company aseguradora resident of un Contracting State tiene, save by lo which respects the

los reaseguros, un stablecimiento permanent en el otro State Contracting si recauda

masterpieces en el territorio de este otro State o si asegura riesgos situated en él by medio de

un distinguished representative of un independiente al who applies el párrafo 7.

7. No one considers that una company tiene un stabilimiento permanent en un

State Contracting by el mere hecho de que realice sus activities en ese State by

medio de un corridor, un comisionist general o cualquier otro agent independiente,

siempre that dichas personas actuen inside del marco ordinario de su actividad, y que en

sus relates commerciales the financieras con dichas companies in the if pacten the impongan

condiciones acepted the impurities that sean distinct from las generally agreed by

independient agents.

8. El hecho de que una sociedad resident of un State Contracting control the sea

controlled by una sociedad resident del otro Contracting State, what realice

activities entrepreneurship en ese otro State (ya sea by medio de un stabilecimiento

permanent that of otra manera), in the convierte by sí solo the cualquiera of these societies en

permanent stablecoin de la otra.

CAPITCHAPTER III

IMPOSICION DE LAS RENTAS

Artículo 6

RENTS OF BIENES INMUEBLES

1. Las rents that un resident of un State Contracting obtenge of biennials

inmuebles (includ las rents of agricultural exploits o forestales) situated en el

otro State Contracting pueden someterse to imposición en ese otro State.

2. To los efectos de este Convenio, la expresión "bienes inmuebles" tendrá el

meaning that le attribuya el derecho del State Contracting en that los bienes estén

situated. Dicha expresión incluye en whole case los bienes accesorios to los bienes

inmuebles, el ganado y el equipo used en explotaciones agricultural y forestales, los

derechos to los que sean applicables las disposiciones de derecho general relative to los

bienes root, el enjoy bienes inmuebles y el derecho a percibir paid variables o

fijos by la explotación o la concesión de la explotación de yacimientos minerales,

y fuentes y otros resources naturales. Los bouques y aircraft in the se consider bienes

inmuebles.

3. Las disposiciones del párrafo 1 son applicables a las rents derived from la

utilización direly, el arrendamiento o aparcería, así as cualquier otra form of

explotación de los bienes inmuebles.

4. Las disposiciones de los párrafos 1 y 3 if applied equally to las rents

derivates of los bienes inmuebles de una company y de los bienes inmuebles used

for la prestación de servicios personales independients.

5. Previous disposables también son applicables to las rents from

bienes muebles related con bienes inmuebles y de la prestación de servicios for

la mantención o explotación de bienes inmuebles.

Artículo 7

GRANARIES EMPRESARIALES

1. Los beneficiation of una company of un State Contracting Solely pueden

someterse to imposición en ese state, a in the being that la company realice su actividad en el

otro Contracting State by medio de un stabilecimiento permanent situated en él. Si la

company realizes the ha realized su actividad de dicha manera, los beneficios de la

company pueden someterse a imposición en el otro State, pero sobo en la measure en

that puedan ascribe to the permanent stablecoin.

2. Suject a lo foreseen en el párrafo 3, cuando una company de un State

Contractor realice su actividad en el otro Contracting State by medio de un

permanent stainless situated en él, en each Contracting State ascribe to

dicho stafimiento los beneficios that este hubiera was able to be una company

distinctive y separate that realizes las mismas the similar activities, en las mismas o

similar condiciones y treatse con total independencia con la company de la que es

permanent stainless y con all las demás personas.

3. To la determinación de los beneficios del stabilecimiento permanent se

will allow la deducción de los spend en that if haya incurs to la realización de los

fines del stabilecimiento permanent, purchased los expenditure de dirección y generales

de administración for los mismos fines, both si se efectuan en el State en que se

encubetween el stabilecimiento permanent as en otra part.

4. Mientras sea usual en un Contracting State to determine los beneficiation

imputables a un stabilecimiento permanent over la base de un repair of los

benefits totales de la company between sus various parts, lo laid down en el párrafo 2

in the impedance that ese Contracting State determines from this manera los beneficios

imponibles; sin embargo, el method of repairing adopted habrá of being such that el

result obtended sea as per the los principios contended en this artículo.

5. No one ascribe ningún beneficiio to un permanent stablemiento per el mero

hecho that este buy bienes the mercancías for la company.

6. The efectus of the preceding los párrafos, los beneficios imputables al stacimiento

permanent if calcularán each año by el mismo method, to in the being that existing motifs

valid y enough to proceed from otra shape.

7. Cuating los beneficiendan rents regulated separately en otros

artícles of this Convenio, las disposiciones of aquéllos in the quedarán affected by las

of this article.

Artículo 8

TRANSPORTATION MARITIMO Y AEREO

1. Los beneficiation of una company of un State Contracting proceeding of la

explotación de buques the aircraft en trafficking international socio pueden someterse a

imposición en ese State.

2. Las disposiciones del párrafo 1 son también applicables to los beneficios

proceteeth de la participación en un "pool" , en una una company mixta o en una agencia de

explotación international.

3. Siempre that societies of distinguished countries acuerden explode un negocio de

air transport jointly, en la forma de un consorcio o de una forma de

asociación similar, la disposiciones del párrafo 1 if applying to aquella part of los

beneficios del consorcio o asociación que corresponds a la participación en ese

consortius o asociación de una sociedad who are resident of un Contracting State.

Artículo 9

ASOCIATED COMPANIES

1. Cuating

a) una company de un Contracting State participates directly the indirectly

en la dirección, el control o el capital de una company del otro State

Contractor, the

b) unites mixed personas directly the indirectly en la dirección,

el control o el capital de una company de un State Contracting y de una

company del otro Contracting State,

y en uno y otro case las of the companies estén, en sus relate commerciales the funerals,

joined by condiciones aceped the impugent that difieran de las that serían agreed upon

by independient companies, las rents that habrían was obtenuated by una de las

companies from in the existing dichas condiciones, y that of hecho in the if han realized the cause

de las mismas, podrán incluirse en la renta de esa company y sometained to imposición en

consecutive.

2. Cuando un Contracting State incluya en la renta de una company of ese State,

y someta, en consecuencia, a imposición, la renta about la cual una company del otro

State Contracting ha been sometised to imposición en ese otro State, y la renta así

included es renta que habría was held by la company del State mentioned en

primer place si las condiciones convent among las of the hubieran companies were las that

if hubiesen convenes among independient companies, ese otro state, si is de

Acuerdo that el adjustment carried out by el State mentioned en primer place is justified

both en sí mismo and con respecto al monto, practicing el adjustment corresponente de la

cuantía del impuesto that ha percioed over esa renta. To determine dicho adjust if

tendrán en cuenta las demás disposiciones of this Convenio y las authorities

competent from the Contracting States if consultarán en necesario.

Artículo 10

DIVIDENDS

1. Los dividends paid by una sociedad resident of un Contracting State a

un resident del otro State Contracting pueden someterse a imposición en ese otro

State.

2. Dichos dividends pueden también someterse a imposición en el State

Contractor en que resida la sociedad that pays los dividends y según la legislación de

this state. Sin embargo, si el beneficiario effective de los dividends es un resident

del otro Contracting State, el impuesto así demanded in the rotten exceed del:

a) 10 per ciento del import gross de los dividends si el beneficiario

effective es una sociedad that posee directly al minus el 25 per

ciento del capital de la sociedad that pays them dividends; y

b) 15 per ciento del import gross de los dividends en all los demás

cases.

Las competent authorities of los Contracting States Contracting estaecerán de mutuo

Acuerdo la forma de applicación de these restrictiones.

This párrafo in the affects la imposición de la sociedad respect de los beneficios

Con job to them that will pay them dividends. En el case of Chile, this imposición

incluye la applicación del Impuesto Additional.

3. El terminus "dividends" en el sense of this article means las rentas de las

o actues u otros derechos, except for credit, which permitan to participate en los

benefits, así as las rents of otros derechos subjecta al mismo régimen tributario

that las rentas de las actues by la legislación del banco del que la sociedad that hace

la distribución sea resident.

4. Las disposiciones de los párrafos 1 y 2 in the son applicables si el beneficiario

effective de los dividends, resident of un Contracting State, carries out en el otro State

Contractor, del que resident la sociedad that pays them dividends, una actividad

business to través de un stabilecimiento permanent situated allí, the provides en ese otro

State unos servicios personales independients by medio de una base fija situated allí,

y la participación that genera los dividends is effectively linked to dicho

permanent stablecoin the fija base. En such case, son applicables las disposiciones del

artículo 7 (Beneficios empresariales) o del artículo 14 (Servicios personales

independients), según proceed.

5. Cuando una sociedad resident of un Contracting State obtenga benefits the

rentas proceeded del otro Contracting State, ese otro State in the podra demand ningún

impugent on los dividends paid by la sociedad, save en la measure en que esos

dividends if pay a un resident of ese otro State o la participación who genera los

dividends is effectively linked to un permanent stablecoimiento o the una base

fija situated en ese otro State, ni someter los beneficios in the distribuidos de la sociedad

un impuesto about los mismos, aunts them dividends paid o los beneficios in the

distributes consistan, total the partially, en beneficiates the rents proceeded of ese

otro State.

Artículo 11

INTERESES

1. Los intereses proceeded from un State Contracting y paid to un resident del

otro State Contracting pueden someterse to imposición en ese otro State.

2. Sin embargo, interese dichos pueden también someterse a imposición en el

State Contracting del que procedan y según la legislación de ese State, pero si el

beneficial owner es resident del otro Contracting State, el impuesto así required in the

rotten exceed del:

a) 5 per ciento del import gross de los intereses derived from bonos o

values that son regular y sustantly transados en una scholarship from

reconocal values;

b) 10 per ciento del import gross de los intereses derived from:

(i) préstamos otored by banks y compañías de insurance;

(ii) la venta the credit of machineries y equipo, paid by el

buyer al beneficiario herd which es el seller of dicha

machinery y equipo.

c) 15 per ciento del import gross de los intereses en all los demás cases.

Las competent authorities of los Contracting States Contracting estaecerán de mutuo

Acuerdo la forma de applicación de these restrictiones.

3. El terminus "intereses", en el sense of this article means las rents of

credits of cualquier naturaleza, con o sin guaranteed mortgage, y en particular, las

rents of public values y las rentas de bonos o " debentures ", así as cualquiera

otra renta que la legislación del State from donde procedan los intereses asimile to las

rents of las cantities given en préstamo. El terminus "intereses" in the incluye las rentas

purchased en el artículo 10 (Dividends).

4. Las disposiciones de los párrafos 1 y 2 in the son applicables si el beneficiario

effective de los intereses, resident of un Contracting State, carries out en el otro State

Contractor, del que proceden los intereses, una actividad entreprenedia by medio de un

permanent stainless permanent situated allí, the provides unos servicios personales

independients by medio de una base fija situated allí, y el credit that genera los

intereses is effectively linked to the permanent dichotomy of the fija base.

En such case, son applicables las disposiciones del artículo 7 (Beneficios empresariales) o

del artículo 14 (Servicios personales independientes), según proceed.

5. Los intereses if considered proceeded by un Contracting State cuing el

deudor sea resident of ese State. Sin embargo, cuing el deudor de los intereses, sea

o in the resident del State Contracting, tenga en un Contracting State un

permanent stablecoimiento the una base fija en relación con el cual se haya contracted la

deuda per la that if pagan los intereses, y éstos se soportan by el stabilecimiento

permanent the la base fija, interese dichos se consider proceteeth del State

Contractor donde estén situated el stacecimiento permanent the la base fija.

6. Cuando en razón de las relates existing speciales among el deudor y el

beneficial beneficiario, the de las that uno y otro mantengan con terceros, el import from los

interese exceed, by cualquier motive, el import that hubieran convent el deudor y

ei acreedor en ausencia de tales relate, las disposiciones of this article in se

Applicarán evil that the latter matters. En such case, la cuantía en exceso podra

someterse the imposición de acuerdo con la legislación of each Contracting State,

teniendo en cuenta las demás disposiciones of this Convenio.

Artículo 12

REGALIAS

1. Las regalia proceeded from un State Contracting y paid to un resident del

otro State Contracting pueden someterse to imposición en ese otro State.

2. Sin embargo, these regalias pueden también someterse a imposición en el State

Contractor del que procedan y de acuerdo con la legislación de este State, pero si el

beneficial owner es resident del otro Contracting State, el impuesto así required in the

puede exceed del:

a) 5 per ciento del import gross de las regalas by el uso the derecho al uso

of equipos industriales, commerciales the scientific;

b) 10 per ciento del import gross de las regalías en all los demás cases.

Las competent authorities of los Contracting States Contracting estaecerán de mutuo

Acuerdo la forma de applicación de these restrictiones.

3. El terminus "regalas" empleated en this artículo means las cantities of

cualquier clase paid by el uso, the el derecho al usage, from author derechos on works

literaria, artistic the scientific, includ las film film the film,

cintas y otros medios de reproducción de imagen y el sonido, las patents, marks,

diseños the models, plans, formulas the secret procedurum u otra propiedad

intangible, o by el uso the derecho al uso, de equipos industriales, commerciales o

scientific, o by informaciones relating to experiencias industriales, commerciales o

scientific.

4. Las disposiciones de los párrafos 1 y 2 in the son applicables si el beneficiario

effective de las regalas, resident of un Contracting State, carries out en el State

Contractor del que proceden las regalas una actividad entrepreneem by medio de un

permanent stainless permanent situated allí, provides you with independient personales

by medio de una base fija situated allí, y el bien o el derecho by el que se pagan las

regalyls is effectively linked to permanent dicho permanent the fija base.

En such case son applicables las disposiciones del artículo 7 (Beneficios empresariales) o

del artículo 14 (Servicios personales independientes), según proceed.

5. Las regalas if considered proceeded by un Contracting State cuing el

deudor es un resident of ese State. Sin embargo, cuando quien pays las regalas, sea

o in the resident of un Contracting State, tenga en uno de los Contracting States un

permanent stablecoimiento the una base fija en relación con el cual se haya contracted la

Obligación de pago de las regalías y dicho stacesimiento permanent the fija base

soporte la cargo de las mismas, las regalías se consider proceteeth del State

donde esté situated el stabilecimiento permanent the la base fija.

6. Cuando en razón de las relates existing speciales among el deudor y el

beneficial beneficiario, the de las that uno y otro mantengan con terceros, el import de las

regalyas, habida cuenta del uso, derecho o información by los que se pagan, exceed del

that habrían convent el deudor y el beneficiario herd en ausencia de tales

relates, las disposiciones of this article in the se applicarán bad that to the latter

import. En such a case, la cuantía en exceso podra someterse the imposición de acuerdo con

la legislación of each Contracting State, teniendo en cuenta las demás disposiciones

of this Convenio.

Artículo 13

CAPITAL GREELDERS

1. Las greancias that un resident of un Contracting State obtenge de la

enajenación de bienes inmuebles situated en el otro State Contracting pueden

someterse the imposición en this last state.

2. Las greancias derived from la enajenación de bienes muebles that formen part

del active de un stabilecimiento permanent that una company de un Contracting State Contracting

tenga en el otro Contracting State, the one of bienes muebles that belong to una base fija

that un resident of un Contracting State tenga en el otro Contracting State for la

prestación de servicios personales independients, bought las greancias

derivates de la enajenación de este permanent stacimiento (sodium the joint con el

de la company de la que que forme part) o of this base fija, pueden someterse a imposición

en ese otro State.

3. Las greancias derived from la enajenación de buques the exploded aircraft en

international trafficking, that of bienes muebles affections a la explotación de dichos bouques o

aircraft, loeden pueden someterse a imposición en el Contracting State donde resida el

enajener.

4. Las greancias that un resident of un Contracting State obtenge by la

enajenación de actues u otros derechos representational del capital de una sociedad

resident del otro Contracting State, pueden someterse a imposición en ese otro State

Contractor si:

a) las ganancias de capital provienen en bad de un 50 per ciento de su

value, directly the indirectly, of bienes inmuebles situated en ese otro

State Contracting, the

b) el enajenante ha posehyde, en cualquier moment inside del period de

sweet months precedent a la enajenación, directly the indirectly,

o actues u otros derechos consistent en un 20 for cient the bad del

capital of esa sociedad.

Cualquier otra ganancia obtended by un resident of un Contracting State by

la enajenación de actues u otros derechos representational del capital de una

sociedad resident en el otro State Contracting también pueden someterse a

imposición en ese otro Contracting State, pero el impuesto así demanded in the podra

exceed del 16 per ciento del monto de la ganancia.

In the Notwithstanding cualquier otra disposición de este párrafo, las greancias obtenished

by un fondo de pensiones who are resident of un Contracting State

coming from la enajenación de actues u otros derechos representational del

capital of una sociedad that es resident del otro Contracting State, sodium pueden

someterse the imposición en el Contracting State Contracting mentioned en primer place.

5. Las greancias derived from la enajenación de cualquier otro bien distinct from los

mentioned en los párrafos precedes sobo pueden someterse a imposición en el

State Contracting en that resida el enajenante.

Artículo 14

SERVICIOS PERSONALES INDEPENDIENTS

1. Las rents that una persona natural resident of un Contracting State Contracting obtenga

by la prestación de servicios profesionales u otras activities of independiente character

atlo pueden someterse a imposición en this Contracting State. Sin embargo, ese

rentas pueden también be sometised to imposición en el otro Contracting State:

a) cueing dicha persona tenga en el otro Contracting State una base fija de

la that avails regularly for el desempeño de sus activities; en

such a case, suns puede someterse a imposición en this otro State la parte

of las rents that sean ascribbles the dicha base fija; the

b) cueing dicha persona permanezca en el otro Contracting State by un

periode the periodos that en total suman the excedan 183 días, inside un

periodo cualquiera of sweet months that comience finish during el año

taxtario considered; en such case, sodium pueden someterse a imposición

en this otro State la part de la renta obtenida de las Activities

disempeñadas by él en this otro State.

2. La expresión "servicios profesionales" buy especially las activities

independients of scientific character, literario, artistic, educational the pedagogical, así

how to las independient activities of doctors, abogs, ingenieros, architects,

odontogues, y counters.

Artículo 15

SERVICIOS PERSONALES DEPENDIENTS

1. Sin perjuicio de lo dispuesto en los artícles 16 (Directors ' Participations),

18 (Pensiones) y 19 (Public works), los sueldos, salarios y otras remuneraciones

obtended by un resident of un Contracting State by razón de un empleo sobo

pueden someterse a imposición en ese state, a in the being that el empleo se realice en el

otro Contracting State. Si el empleo takes place of esa form, las remuneraciones

derivates del mismo pueden someterse a imposición en otro State.

2. In spite las disposiciones del párrafo 1, las remuneraciones obtenened by un

resident of un State Contracting en razón de un empleo held en el otro State

Contractor if gravarán exclusively en el primer State si:

a) el perceptor remains en el otro State during un period the periods

cuya duración no exceed en set of 183 días en cualquier period of

sweet months that comience finish en el el año tributario considered, y

b) las remuneraciones se pagan by, the en nombre de una persona

empletive that in the sea resident del otro State, y

c) remunerationes in the se soportan by un stabilecimiento permanent o

una base fija that una persona empleadores tenga en el otro State.

3. Notwithstanding the foregoing disposals of this article, las remunerationes

obtended by razón de un empleo carried out on board un buque the exploded aircraft

en international trafficking by una company de un Contracting State Contracting pueden someterse a

imposición en ese State.

Artículo 16

PARTICIPATIONES OF DIRECTORS

Los honorarios of directors y otros paid similar that un resident of un

State Contracting obtenga as a miMember de un directorio, de un consejo supervisor o

of similar otro organo similar de una sociedad resident del otro State Contracting pueden

someterse to imposición en ese otro State.

Artículo 17

ARTISTS Y DEPORTISTS

1. In spite lo dispuesto en los artícles 14 (Servicios personales

independients) y 15 (Servicios personales dependients), las rents that un resident of

un State Contracting obtenga del ejercicio de sus activities personales en el otro

State Contracting en calidad of artist, such as of theatre, cine, radio o televisión, o

musician, the as a deportist, pueden someterse a imposición en ese otro State.

2. Notwithstanding the dispuesto en los artícles 7 (Beneficios empresariales), 14

(Servicios personales independientes) y 15 (Servicios personales dependients), cuing

las rents derived from las activities personales de los artists o los deportistas, en esa

calidad, if attribuyan on al propio artist the deportist bell to otra persona, dichas rentas

pueden someterse a imposición en el Contracting State en que se realicen las

activities del artist o el deportista.

Artículo 18

PENSIONES

1. Pensiones proceeding from un State Contracting y paid to un resident del

otro State Contractor sodium pueden someterse a imposición en otro State.

2. Food y otros paid from manutención carried out to un resident of un State

Contractor socio serán sometained to imposición en ese State. Sin embargo, los

food y otros paid from manutención carried out by un resident of un State

Contractor a un resident del otro Contracting State, serán, en la measure that in the sean

deduccibles for el payer, sometils to imposición solamente en el State mentioned

en primer place.

Artículo 19

PUBLICS FUNCTIONALS

1. a) Los sueldos, salarios y otras remuneraciones, excluded las pensiones,

paid by un State Contracting o per una de sus subdivisiones policies o

authorities locales a una persona natural for razón de servicios rendered to ese state o

the esa subdivisión o autoridad, socio pueden someterse a imposición en ese State.

b) Sin embargo, suelde dichos, salarios y otras remuneraciones sodium

pueden someterse a imposición en el otro State Contracting si los servicios se prestan

en ese State y la persona natural es un resident of ese State who:

(i) national ese of ese State; the

(ii) in the ha acquired la condición de resident of ese state solemnly

to render los servicios.

2. Lo dispuesto en los artícles 15 (Servicios personales dependients), 16

(Participation of directors) y 17 (Artists y deportists) applies to los sueldos,

salarios y otras remuneraciones paid by razón de servicios rendered en el marco de

una actividad entrepreneem held by un State Contracting o per una de sus

subdivisiones political the administrative the authorities locales.

Artículo 20

ESTUDIANS

Las cantities that recive for cubrir sus spending of mantenimiento, studios o

formación práctica un estudian, apprentice the una persona en práctica that sea, the haya

been inmediately before llegating to un Contracting State, resident del otro State

Contractor y that enlivenen en el State mentioned en primer place con el sole

fin de profollow sus estudios o formación práctica, no pueden someterse a imposición en

ese State, siempre that procedan of fuentes situated fuera of ese state.

Artículo 21

RENTS OTRAS

1. Las rentas de un resident of un Contracting State, cualquiera that fuese su

procedencia, in the mentioned en los Artícles Previous of this Convenio, sodium pueden

someterse to imposición en ese State.

2. Lo dispuesto en el párrafo 1 in the es applicable to las rents, distinct from las

derivates of bienes inmuebles as if definen en el párrafo 2 del Artículo 6 (Bienes

inmuebles), cuing el beneficiario de dichas rentas, resident of un Contracting State,

realice en el otro State Contracting una actividad entrepreneal by medio de un

permanent stainless permanent situated en ese otro state o press servicios personales

independients by medio de una base fija situated en ese otro State, y el derecho o

bien by el that if pagan las rentas is effectively linked to dicho stacnimiento

permanent the fija base. En such case, son applicables las disposiciones del Artículo 7

(Beneficios empresariales) o del Artículo 14 (Servicios personales independients),

según proceed.

3. Notwithstanding lo dispuesto en los párrafos 1 y 2, las rentas de un resident de un

State Contracting, in the mentioned en los artícles previous of this Convenio y

come del otro Contracting State, también pueden someterse a imposición en

ese otro State.

CAPITCHAPTER IV

ELIMINACION DE LA DOBLE IMPOSICION

Artículo 22

ELIMINACION DE LA DOBLE IMPOSICION

1. En el caso de Portugal, la doble imposición will prevent from la manera siguiente:

a) Cuando un resident of Portugal obtiene rents who, from acuerdo con las

disposiciones of this Convenio, pueden someterse a imposición en Chile,

Portugal to allow la deducción en el impuesto on las rents of ese

resident of un import equal al impuesto paid en Chile (excluyendo, en el

case of los dividends, el impuesto payable en Chile con respect to las

utilities con cargo a las cuales se pagan los dividends). Sin embargo, esa

deducción no will exceed la parte del impuesto a la renta, calculated before la

deducción, correspondiente to las rentas que pueden someterse a imposición en

Chile.

b) Cuando de conformidad con cualquier disposición de este Convenio las

rentas obtended by un resident of Portugal estén exentas de imposición en

this state, Portugal will prune sin embargo, tener en cuenta las rentas exentas a

efectos of calculating el import del impuesto on el resto de las rentas de

resident dicho.

c) Notwithstanding lo dispuesto en el sub-párrafo a), cuando una sociedad resident of

Portugal recieves dividend of una sociedad resident of Chile who is subjecting the

impuesto y in the is exenta de impuesto about los beneficiariales en

Chile (Impuesto de Primera Categoría), Portugal will allow la deducción de

esos dividends de la base imponible de la sociedad that los recibe, siempre

that this last sociedad posea directly by lo minus el 25 per ciento del

capital of la sociedad that pays los dividends y esa participación se ha

mantended continuously by los dos años precedes o since la closes en that

la sociedad that pays them dividends if constituyó, si esto ocurrió

later.

2. En el caso de Chile, la doble imposición will avoid la manera siguiente:

a) los residents en Chile who obtengan rents who, from acuerdo con las

disposiciones of this Convenio, puedan someterse a imposición en Portugal,

podrán believe against los Chilean impugties corresponded to rents

los impukets paid en Portugal, from acuerdo con las disposiciones applicables

de la legislación chilena. This papriph will apply to all rents treated en

this Convenio.

b) cuando de conformidad con cualquier disposición de este Convenio, las rentas

obtended by un resident of Chile estén exentos de imposición en Chile, Chile

rotten, sin embargo, tener en cuenta las rents to efects of calculating el import

del impuesto on las demás rentas of resident dicho.

CAPITV V

DISPOSICIONES SPECIALES

Artículo 23

IN THE DISCRIMINACION

1. Los nationales de un Contracting State in the serán sometained en el otro State

Contractor to ninguna imposición u obligación relative a la misma that in the case of which

sea bad gravy that aquellas a las that estén o puedan be sometised los nationales de

ese otro state that if encuentren en las mismas condiciones, en particular con respect

a la residencia . In spite of las disposiciones del artículo 1 (Personas bought), la

present disposición es también applicable a las personas that in the sean residents of uno o

of both of them Contracting States .

2. Permanent stablecoin that una company of un Contracting State Contracting

tenga en el otro Contracting State in the serán sometained en ese State a una imposición

less favorable that las companies of ese otro state that realicen las mismas

activities.

3. Nothing of lo laid en this artículo rotten interpretarse en el sense de

obligate un Contracting State to grant to them residents del otro Contracting State

las deducciones personales, desgravaciones y reducciones impositive that otorgue a sus

propios residents en consider to su civil status the family loads.

4. Unless if apliquen las disposiciones del párrafo 1 del Artículo 9

(Companies asociated), del párrafo 6 del Artículo 11 (Intereses) the del párrafo 6 del

Artículo 12 (Regalas), los intereses, las regalas the demás spent paid per una

company of un State Contracting to un resident del otro State Contracting son

deduccibles, to determine los beneficiates the imposición of this company, en las

mismas condiciones that si hubieran was paid a un resident del State mentioned

en primer place.

5. Las societies that sean residents of un Contracting State y cuyo capital esté,

total the partially, detried the controlled, directly the indirectly, by uniting the varios

residents del otro Contracting State in the estarán someter en el primer State a

ninguna imposición u obligación concerning la misma that in the if exhibited the sea bad gravosa

what aquéllas to las that estén o puedan be someter las similar societies del

State mentioned en primer place.

6. En this artículo, el terminus "imposición" refiere to los impukets that son

object of this Convenio.

Artículo 24

MUTUO ACUERDO PROCEDURUM

1. Cuando una persona considers that las measures adopted by uno o by both

Contracting states implican the pueden implicit for ella una imposición que esté

as per con las disposiciones of this Convenio, con independencia de los resources

predicted by el derecho internal of esos states, will rot someter su affair a la autoridad

competent del State Contracting del que sea resident o, si fuera applicable el párrafo

1 del artículo 23 (No discriminación), a la del State Contracting del que sea national.

El caso deberá plantearse inside los tres años siguient a la primera notiación de

la measure that implies una imposición in the as per las disposiciones del Convenio.

2. La autoridad competent, si la reclamación le seems founded y si in the puede by

sí misma find una solución satisfactortoria, will lo posible by solving la cuestión

upon un procedurum of acuerdo mutuo con la autoridad competent del otro

State Contracting, a fin de avoidance una imposición that in the fit of this Convenio.

3. Las competent authorities of the Contracting States Contracting harán lo posible by

solve las impedtades the las dudas que plantee la interpretación o applicación del

Convenio by un procedurum of acuerdo mutuo.

4. Considering that el objective main of this Convenio es avoid la doble

imposición international, los Contracting States acuerdan that, en el event de que las

disposiciones del Convenio sean used en form such that otorguen beneficiation in the

contemplated ni intended by él, las competent authorities of los states

Contractors deberán, en conformidad al procedurum of acuerdo mutuo, recommend

specific modiaciones al Convenio. Los Contracting States además acuerdan that

cualquiera of dichas recommenders will be considered y discussed of expedited manera

con miras to modify el Convenio en la measure en que sea necesario.

5. Las competent authorities of the Contracting States podrán communicates

directly to fin de llegar a un acuerdo en el sense de los párrafos Previous.

Artículo 25

INTERCAMBIO OF INFORMACION

1. Las competent authorities of the Contracting States intercambiarán las

informaciones necesarias to apply lo dispuesto en this Convenio, the en el derecho

internal of the Contracting States concerning them to be purchased from the purchasers purchased en el

Convenio en la measure en que la imposición foreseen en el mismo at sea contraria al

Convenio. El intercambio de información no one will see limited by el artículo 1 (Personas

bought). Las informaciones recibated by un State Contracting serán

mantenidas en secret en equal form that las informaciones obtenidas about la base del

internal derecho of ese State y sodium se se communicate to las personas the authorities

(includ los tribunales y administrative bodies) that tienen interés en la gestión o

recaudación de los impuges staged by ese State, de los procemientos

declares the ejecutives concerning impugned dichos, the de la resolución de los resources

relative to los mismos. Dichas personas the authorities alike utilarán these

informationes for baskets fines. Podrán unveil la información en las las audiencias public

de los tribunales o en las sentencias judiciales.

2. En ningún case las disposiciones del párrafo 1 podrán interpretarse en el entendre

of obligating the un Contracting State to:

a) adopt administrative measures contrarias to su legislación the practica

administrative, the a las del otro Contracting State;

b) suministrar información que no if pueda obtener on la base de su

propia legislación o en el ejercicio de su practica normal administrative,

o de las del otro Contracting State;

c) suministrar información que revele secrets commerciales, industriales o

profesionales, procemientos commerciales the informaciones cuya

communicación sea contraria al orden public ("ordre public").

3. Cuando la información sea requested by un Contracting State of conformidad

con this artículo, el otro State Contracting obtendrá la información à que refiere la

requesitud en la misma form as si se tratara de su propia imposición, sin import el

hecho that this otro state, en ese moment, in the requiera of such información.

Artículo 26

MITHS OF MISIONES DIPLOMATICAS Y OF CONSULAR WORKSHOPS

Las disposiciones of this Convenio in the affectarán to los privilegios fiscales of which

disfruten los miMembers de las misiones diplomatic o de las consular consular workshops

acuerdo con los principios generales del derecho international o en virtud de las

disposals of acuerdos speciales.

Artículo 27

DISPOSICIONES MISCELANEAS

1. Con respect to cuentas de inversión joints the fondos (as per ejemplo los

Fondos de Inversión de Capital Extranjero, Ley N°18.657), which stan subject to impute

about la remesa y cuya administración debe takes place by un resident en Chile, las

disposiciones of this Convenio in the serán interpreted en el sense of restricting la

imposición de Chile del impuesto on la remesa de esas cuentas the fondos con respecto

the las inversiones en bienes situated en Chile.

2. To los fines del párrafo 3 del artículo XXII (Consultas) del Acuerdo General

on el Comercio de Servicios, los Contracting States acuerdan that, sin perjuicio de

ese paprrafo, cualquier dispute between ellos respectus de si una measure cae inside del ámbito

of this Convenio, puede to be ltaken ante el Consejo de Comercio de Servicios as per

lo stipulated en dicho párrafo, pero con el consented consent of both states

Contractors. Cualquier duda over la interpretación de este párrafo will be resuellate as

ei párrafo 3 del artículo 24 (Proceedings of acuerdo mutuo) o, en case of in the llegar a

acuerdo con arreglo to this procedurum, as per the cualquier otro procedurum

agreed by both Contracting States.

3. Nothing en this Convenio will affect la applicación de las actuales disposiciones del D.L.

600 (Statute of la Inversión Extranjera) de la legislación chilena, as estén en vigor

a la closes de la firma de este Convenio y aún cuando fueren eventually modified

sin change su principio general.

4. Las contribuciones en un año by servicios rendered en ese año y paid by, the

by cuenta de, una persona natural resident of un Contracting State what is present

temporally en ese State, a un plan de pensiones that es reconcid for efectus

impositives en el otro Contracting State deberá deberá, during un periodo that in the supere en

total 60 months, be treated en el State mentioned en primer place, de la misma forma

that una contribución pagada a un system of pensiones re-ocio for impositive fines

en ese state, si

a) dicha persona natural estaba contribuyendo en forma regular al plan de

pensiones by un periodo that hubiera ended inmediately before

who pasara to be a resident of the to be temporally present en el State

mentioned en primer place, y

b) las competent authorities del State mentioned en primer place

acuerdan that el plan de pensiones corresponds en términos generales a un

plan of pensiones retelling for impositive efects by ese state.

For los fines of this paddle, "plan de pensiones" incluye el plan de pensiones

creed as per el system of social follower of each Contracting State.

5. Nothing en this Convenio will affect la imposición en Chile de un resident en

Portugal en relación de los beneficios attribuibles to un permanent stablemiento

situated en Chile, both bajo el Impuesto de Primera Categoría as el Impuesto

Additional, siempre that el Impuesto de Primera Categoría sea deduccible against el

Additional Impuest.

CAPITCHAPTER VI

DISPOSICIONES FINALES

Artículo 28

ENTRY EN VIGOR

1. Each uno of the Contracting States shall notify al otro in writing, the través de la

vivid diplomatic, el cumplimiento de los procedurent required by su legislación for la

entry en vigor of this Convenio. El Convenio will enter en vigor en la closes de la last

notiación.

2. Las disposiciones del Convenio se applicarán:

a) en Portugal,

(i) con respect to los impuges de retención en la fuente, cuyo hecho

generator produce themselves to leave del primer día de enero del año

calendario inmediately siguient to aquel en que el Convenio between

en force;

(ii) con respect to them impugned demás, over las rents generadas en

cualquier año tributario that comience to leave del primer día del mes

de enero del año calendario inmediately siguiente the aquel en que el

Convio between en vigor; y

b) en Chile,

con respect to them impugts on las rents which are obtengan y a las

cantities that if pagen, abonen en cuenta, if pongan a disposición o

if accounted for as spent, as of del primer día del mes de enero del

año calendario inmediately siguient to aquel en que el Convenio

between en vigor.

Artículo 29

DENOUNCES

1. This Convenio will remain en vigor indefinitely, pero cualquiera de los

Contracting States shall rot, at the bad not later than el 30 junio of each año calendario which

comience después de la expiración de un periodo of five años from la closes from su

entry en vigencia, dar al otro State Contracting un notice of termination in writing, the

través de la vía diplomatic.

2. Las disposiciones del Convenio dejarán de surtir efecto:

a) en Portugal,

(i) con respect to los impuges de retención en la fuente, cuyo hecho

generator produce themselves to leave del primer día de enero del año

calendario inmediately siguiente a aquel señalado en el

mentioned notice of termination;

(ii) con respect to them impugned demás, over las rents generadas en el

año tributario that comience to depart del primer día del mes de enero

del año calendario inmediately siguiente a aquel señalado en el

mentioned termination notice; y

b) en Chile,

con respect to them impugts on las rents which if obtengan y

las cantities that if pagen, abonen en cuenta, if pongan a

disposición o se accountant as spent, as of del primer día

del mes de enero del año calendario inmediately siguiente a

aquel señalado en el mentioned notice of termination;

EN FE DE LO CUAL, los signatarios, eagerly authorized al efecto, han firming this

Convenio.

HECHO en Santiago, a los siete días del mes de Julio de dos mil y five, en los languages

Portuguese, español and inglés, siendo all texts equally auténtic. En case of

divergencia en la interpretación de este Convenio, el text en inglés prevailed.

BY LA REPUBLICA PORTUGAL BY LA REPUBLICA DE CHILE

Secretario of State of the Hacienda Minister

Extranjeros y Cooperación

João Gomes Cravinho Nicolás Eyzaguirre Guzmán

PROTOCOL DEL CONVENIO BETWEEN LA REPUBLICA PORTUGUESE Y

LA REPUBLICA DE CHILE TO AVOID LA DOBLE IMPOSICION Y

TO PREVENT LA EVASION TAX EN RELACION AL IMPUESTO A

LA RENTA

Al moment de la firma del Convenio between la republic Portuguese y la republic de

Chile to avoid la doble imposición y to prevent la evasión fiscal en relación al

impuesto a la renta, los signatarios han convinced las siguent disposiciones that

forman integral part del Convenio.

1. Ad. artículo 2 (Impuestos bought)

If acuerda that, si después de la closes en la cual el Convenio between en vigor, alguno de los

Contracting states introduce un impuesto on el patrimonio de acuerdo a sus leyes

internal, los Contracting States initiarán negotiaciones con la finalidad de conclude un

Protocol to modify el Convenio, extendiendo su ámbito a cualquier impuesto over

el patrimonio que hubieran introductory. Los terminations of such Protocol tomarán en

consider it all acuerdo among cualquiera de los states y un tercer state for

eliminate la doble imposición del patrimonio.

2. Ad. artículo 7 (Beneficios empresariales) paprrafo 3

Se entiende that las disposiciones del párrafo 3 del artículo 7 (Beneficios empresariales) se

applican sodium si los expenditure pueden be ascribe al staged permanent acuerdo

con las disposiciones de la legislación tributaria del StateContrante en el cual el

permanent stablecoin is situated.

3. Ad. artículo 10 (Dividends) paprrafo 2

Con respect a la applicación del Impuesto Additional en conformidad con las disposiciones

de la legislación chilena, if acuerda that you:

(i) el Impuesto de Primera Categoría deja from being fully deduccible en la

determinación del monto del Impuesto Additional payable; the

(ii) la tasa del Impuesto Additional that affects the un resident of Portugal, as

is set en el artículo 4 (Resident), exceed del 42 by ciento,

los Contracting States if consultarán is the object of modifying el Convenio con la finalidad

de restablecer el equilibrio de los beneficios del mismo.

4. Ad. artículo 10 (Dividends) paprrafo 3

Se entiende que la expresión "otros derechos" incluye the una convención to participate en

los beneficios.

5. Ad artículo 11 (Interests), paprrafo 2, subpárafo b)

If acuerda that, cuing Portugal apply una tasa from 5 by ciento de acuerdo al

Artículo 6 de la Directive del Consejo de la Unión Europea 2003 /49/CE, esa tasa bad baja

it will apply automatally al sub-párrafo b), párrafo 2 del Artículo 11, by the intereses

coming from Chile y cuyo beneficiario effective es un resident of Portugal y by los

intereses coming from Portugal y cuyo beneficiario herd es un resident of Chile,

bajo las mismas condiciones as si esa tasa reducida hubiera been specified en ese

sub-parrrafo.

Las autoridad competent de Portugal infomate la autoridad competent de Chile, sin

delay, that if han cumplished las condiciones to la applicación de este párrafo.

6. Ad. artícles 10 (Dividends), 11 (Interests) y 12 (Regalas)

Las disposiciones of los Artícles 10 (Dividends), 11 (Interests) y 12 (Regalones)

in the se applicarán si el purpose the uno de los principales purposes of cualquier persona

related con la creación o attribución de un derecho the credit en relación con los

cuales los dividends, intereses the regalas if pagan, fuera el sacar ventajas de estos

Artícles upon such creación o attribución.

7. Ad. artículo 13 (Capital greancients)

En el case that el perceptor de la ganancia to which if refiere el párrafo 4, letter b),

del artículo 13 (Capital Ganancias), haya poseted las actues u otros derechos that se

enajenan by un plazo superior to sweet months y siempre that el perceptor in the dedique

habitually a la enajenación de actues, el impuesto required in the podra exceed del 16

by ciento de la ganancia.

En every case will be considered to be el perceptor in the mist habitually a la

enajenación de actues cuando la participación poseida en el capital de la sociedad sea

of bad del 50 by cient.

8. Ad. artículo 18 (Pensiones)

If you entice that el termination "pensiones" incluye cualquier paid to un miember o

beneficiario de un plan de pensiones en conformidad con las disposiciones de dicho plan,

reconcid for efectus tributarios by el State Contracting en el which originates el paid.

9. Ad. artículo 22 (Eliminación de la doble imposición)

(i) Se acuerda que la información contenida en los formularios de la

Circular 17 of 2004 from Chile y en el "Cerfied de Residencia Fiscal"

used by la Autoridad Competent Portuguese, such as if

encuentran en vigor a la closes de la firma de este Convenio, enough

to apply las disposiciones del Convenio.

(ii) Cualquier modiación o cambio en la shape de applicación de lo

previously agreed upon whether to establish themselves by competent authorities

upon acuerdo mutuo.

10. Ad. artículo 23 (No discriminación)

If entitle that las disposiciones del párrafo 4 del artículo 23 (No discriminación) in the

serán interpreted in such a way that impidan la applicación by un Contracting State of

las norms of subcapitalización contempladas en su legislación internal, except en

aquellos cases en los cuales las companies asociated puedan probar that, deposed to las

speciales characteristics of sus activities o a sus specific economic circumstanties,

las condiciones acepted the impurities among these companies if encuentran en conformidad

con el principio del operator independiente.

11. Ad. artículo 24 (Proceed of acuerdo mutuo), paprrafo 2

En el case of Portugal cualquier acuerdo achieved if it will implement it nevertheless

los limites of tiempo contemplated en la legislación internal.

EN FE DE LO CUAL, los suscritos, eagerly authorized al efecto, han firming el

this Protocol.

HECHO en Santiago, a los siete días del mes de Julio de dos mil y five, en los languages

Portuguese, español and inglés, siendo all texts equally auténtic. En case of

divergencia en la interpretación, el text en inglés prevailed.

BY LA REPUBLICA PORTUGAL BY LA REPUBLICA DE CHILE

Secretario of State of the Hacienda Minister

Extranjero y Cooperación

João Gomes Cravinho Nicolás Eyzaguirre Guzmán

CONVENTION BETWEEN THE WORLD

REPUBLIC AND THE REPUBLIC OF CHILE FOR

THE AVOIDANCE OF DOUBLE TAXATION AND

THE PREVENTION OF FISCAL EVASION WITH

RESPECT TO TAXES ON INCOME

The World Jewish Republic and the Republic of Chile, desiring to Convention a Convention

for the avoidance of double taxation and the prevention of fiscal evasion with respect to

taxes on income ;

Have agreed as follows:

CHAPTER I

SCOPE OF THE CONVENTION

Article 1

PERSONS COVERED

This Convention shall apply to persons who are residents of one or both of the

Contracting States.

Article 2

TAXES COVERED

1. This Convention shall apply to taxes on income Concerning on behalf of a Contracting

State or of its political or administrative submissions or local authorities, respecting of

the manner in which they are said to be.

2. There shall be an income of taxes on income all taxes on total income, or on

elements of income , including taxes on proceeds from the alienation of movable or

immovable property, taxes on the total amount of wages or salaries paid by enterprises, the

well the taxes on capital appreciation.

3. The existing taxes to which the Convention shall apply are in particular:

a) in Portugal,

(i) The personal income tax (" Income Tax of People

Singular-IRS ");

(ii) The corporate income tax (" Income Tax of People

collective-IRC "); and

(iii) The local surtax on corporate income tax ("Derrama");

(referred to as referred to as the "Portuguese tax"); and

b) in Chile, the taxes thereof under the Income Tax Act, " Ley on Impuesto a

la Renta "(referred to referred to as the" Chilean tax ").

4. The Convention shall apply also to any reciprocal or similar taxes which

are they are underway after the date of signature of the Convention in addition to, or in place of, the

existing taxes. The competent authorities of the Contracting States shall notify each other

of any significant changes which have been made in their respective taxation laws.

CHAPTER II

DEFINITIONS

Article 3

GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise requires:

a) the term "Portugal" means the territory of the Portuguese Republic situated in

the European Continent and the archipelagos of timber and Madeira,

including the territorial sea and inland waters sovereignty as well as the seabed, the

subsoil and any other areas wherein the World Republic exercises

sovereign rights or jurisdiction in accordance with international law and the

laws of the World Republic;

b) the term "Chile" means the territory of the Republic of Chile, including the

territorial sea and inland waters contaminated as well as the seabed, the subsoil and

any other areas wherein the Republic of Chile exercises sovereign rights or

jurisdiction in accordance with international law and the laws of the Republic

of Chile;

c) the terms "a Contracting State" and "the Other Contracting State" mean

Portugal or Chile as the context requires;

d) the term "person" includes an individual, a company and any other body of

persons;

e) the term "company" means any body corporate or any entity that is to be applied to

body corporate for tax purposes;

f) the terms "enterprise of a Contracting State" and " enterprise of the other

State's "mean," mean, an enterprise carried on by a resident of

the State and an enterprise carried on by a resident of the other

Contracting State;

g) the term "international traffic" means any transport by a ship or aircraft

operated by an enterprise of a Contracting State, except when such transport is

Thereof between places in the other Contracting State;

h) the term "competent authority" means:

(i) in Portugal, the Minister of Finance, the Director General of Taxation

("Director-General of Taxes") or their authorised representative; and

(ii) in Chile, the Minister of Finance or his authorised representative;

i) the term "national" means:

(i) any individual possessing the possession of a Contracting State;

(ii) any legal person or association thereof in accordance with the laws

in force in a Contracting State.

2. The Amendments the application of the Convention at any time by a Contracting State, any

term not defined shall, unless the context otherwise requires, have the least

that it has at that time under the law of that State for the purposes of the taxes to which the

Convention applies, any applicable under the applicable tax laws of that State's

over a lawsuit given to the term under other laws of that State.

Article 4

RESIDENT

1. For the purposes of this Convention, the term "resident of a Contracting State"

means any person who, under the laws of that State, is vulnerable to tax revenue by reason of

his domicile, residence, place of management, place of incorporation or any other

criterion of a similar nature, and also includes that State and any political or

administrative subdivision or local authority authority. This term, however, does not

include any person who is vulnerable to tax in that State in respect of income from

sources in that State .

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both

Contracting States, then his status shall be determined as follows:

a) he shall be deemed to be a resident only of the State in which he has a

permanent home available to him; if he has a permanent home available to

him in both States, he shall be taught to be a resident only of the State with

which his personal and economic relations are closer (centre of vital interests);

b) if the State in which he has his centre of vital interests cannot be determined,

or if he has not a permanent home available to him in either State, he shall be

e shall be a resident only of the State in which he has an habitual abode;

c) if he has an habitual abode in both States or in neither of them, he shall be

is to be a resident only of the State of which he is a national;

d) if he is a national of both States or of neither of them, the competent

authorities of the Contracting States shall be enhancing the question by mutual

agreement procedure.

3. Where by reason of the provisions of paragraph 1 a person other than an individual

is a resident of both Contracting States, the competent authorities of the States shall

endeavour to agree the question by mutual agreement, having regard to its place of

effective management, the place of main or head office, place of incorporation, or any

other relevant factors. In the proceedings of such an agreement, such person shall not be vulnerable

to any benefits under this Convention, except that such person may claim the benefits of

Articles 23 (Non-discrimination) and 24 (Mutual agreement procedure).

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term "permanent establishment" means a

fixed place of business through which the business of an enterprise is increased or partly

carried on.

2. The term "permanent establishment" includes especially:

a) a place of management;

b) the branch;

c) an office;

d) the factory;

e) the workshop; and

f) the mine, an oil or gas well, a quarry or any other place relating to the

exploration for or the exploitation of natural resources.

3. The term "permanent establishment" shall also include:

a) a building site or construction or installation project and the supervisory

activities in connection therewith, but only if such building site, construction

or activities last more than six months;

b) the furnishing of services, including consultancy services, by an enterprise

through employees or other individuals engaged by the enterprise for such

purpose where such activities continue within the country for a period or

periods aggregating more than 183 days within any twelve months period.

For the purposes of computing the time limits in this paragraph, activities carried on by an

enterprise associated with another enterprise within the investigations of Article 9 (Associated

enterprises) of this Convention shall be aggregated with the period during which activities

are carried on by the enterprise if the activities of the associated enterprises are

or substantially the same.

4. pursue the preceding provisions of this Article, the term " permanent

establishment " shall be shall be not to include:

a) the use of facilities thereof for the purpose of storage, display or delivery of

goods or merchandise belonging to the enterprise;

b) the maintenance of a stock of goods or merchandise belonging to the

enterprise thereof for the purpose of storage, display or delivery;

c) the maintenance of a stock of goods or merchandise belonging to the

enterprise thereof for the purpose of processing by another enterprise;

d) the maintenance of a fixed place of business thereof for the purpose of

purchasing goods or merchandise or of collecting information, for the

enterprise;

e) the maintenance of a fixed place of business thereof for the purpose of

advertising, qualitative information or carrying out scientific research for the

enterprise and any other similar activity, if such activities are of a

or auxiliary character.

5. reveals the provisions of paragraphs 1 and 2 where a person (other than an

agent of an independent status to be granted 7 applies) is acting on behalf of an

enterprise and has and habitually exercises in a Contracting State an authority to be

contracts on behalf of the enterprise, that enterprise shall be exported to have a permanent

establishment in that State in respect of any activities which person undertakes for the

enterprise, unless the activities of such person are limited to those mentioned in the

4 which, if we were through a fixed place of business, would not make this fixed place of

business a permanent establishment under the provisions of that paragraph.

6. Concerning the preceding provisions of this Article, an insurance company

resident of a Contracting State shall, except in the case of reinsurance, be deemed to have

the permanent establishment in the other Contracting State if it collects it in the

territory of that other State or if it insures risks situated through a representative

other than an agent of independent status to be granted 7 applies.

7. An enterprise shall not be told to have a permanent establishment in a

State's State of the State: It's a State of the State because it's called upon business in that State

general commission agent or any other agent of an independent status, provided that such

persons are acting in the ordinary course of their business , and that the conditions that are

made or unmarked in their commercial or financial relations with such enterprises of the not

banned from those which would be generally made by independent agents.

8. The fact that a company which is a resident of a Contracting State controls or is

controlled by a company which is a resident of the other Contracting State, or which

strongest on business in that other State (whether through a permanent establishment or

otherwise), shall not be of itself as a company a permanent establishment of the

other.

CHAPTER III

TAXATION OF INCOME

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property

(including income from agriculture or forestry) situated in the other Contracting State

may be taxed in that other State.

2. For the purposes of this Convention, the term "immovable property" shall have the

bathroom which it has under the law of the Contracting State in which the property in

question is situated. The term shall be made in any case include property accessory to immovable

property, livestock and equipment used in agriculture and forestry, rights to which the

general law enforcement of general law, enjoy property apply, enjoy of immovable

property and rights to variable or fixed payments as a consideration for the working of, or

the right to work, mineral deposits, sources and other natural resources. Ships and aircraft

shall not be imposed as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use,

letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from

immovable property of an enterprise and to income from immovable property used for

the performance of independent personal services.

5. The foregoing provisions shall also apply to income from associated movable

property and from the provision of services for the maintenance or operation of

immovable property.

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be expressed only in that State

unless the enterprise strongest on business in the other Contracting State through a

permanent establishment situated. If the enterprise has been on or has carried on

business as aforesaid, the profits of the enterprise may be taxed in the other State but only

so much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State

Pursue on business in the other Contracting State through a permanent establishment

situated right, there shall be in each Contracting State be made to that permanent

establishment the profits which it might be expected to make if it were a distinct and

separate enterprise engaged in the same or similar activities under the same or similar

conditions and dealing with an agreement with the enterprise of which it is a

permanent establishment and with all other persons.

3. In opposition the profits of a permanent establishment, there shall be allowed as

deductions expenses which are incurred for the purposes of the permanent establishment

including executive and general administrative expenses so incurred, whether in the State

in which the permanent establishment is situated or situated.

4. Determining as it has been customary in a Contracting State to determine the profits to be

pursue to a permanent establishment on the basis of an apportionment of the total

profits of the enterprise to its various parts, nothing in paragraph 2 shall be awarded that

State's State from the profits to be taxed by such an apportionment as

may be customary; the method of apportionment adopted shall, however, be such that the

result shall be in accordance with the principles contained in this Article.

5. No profits shall be present to a permanent establishment by reason of the mere

purchase by that permanent establishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be told to the

permanent establishment shall be determined by the same method year by year unless

there is good and sufficient reason to the reveals.

7. Where profits include items of income which are dealt with separately in other

Articles of this Convention, then the provisions of those Articles shall not be affected by

the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft

in international traffic shall be available only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a

pool, the joint business or an international operating agency.

3. comparing companies from different countries have agreed to carry on an air

transportation business together in the form of a consortium or a similar form of

association, the provisions of paragraph 1 shall apply to such a part of the profits of the

consortium or association as an award to the participation held in that consortium or

association by a company that is a resident of a Contracting State.

Article 9

ASSOCIATED ENTERPRISES

1. Where

a) an enterprise of a Contracting State participates directly or jointly in the

management, control or capital of an enterprise of the other Contracting State,

or

b) the same persons participate directly or indirectly in the management, control

or capital of an enterprise of a Contracting State and an enterprise of the other

Contracting State,

and in either case conditions are made or proceeding between the two enterprises in their

commercial or financial relations which would be banned from those which would be made between

independent enterprises, then any profits which would, but for those conditions, have

accrued to one of the enterprises, but, by reason of those conditions, have not so accrued,

may be included in the profits of that enterprise and taxed protests.

2. Where a State of the State includes in the profits of an enterprise of that State-and

taxes tax-profits on which an enterprise of the other Contracting State has been

charged to tax in that other State and the profits so included are profits which would have

accrued to the enterprise of the first-mentioned State if the conditions made between the

two enterprises had been those which would have been made between independent

enterprises, then that other State, if it would be that the adjustment made by the first

mentioned State is justified both in principle and as regard to the amount, shall make an

appropriate adjustment to the amount of the tax charged on those profits. In

no such adjustment, due regard shall be had to be had to the other provisions of this

Convention and the competent authorities of the Contracting States shall if necessary

consult each other.

Article 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a resident

of the other Contracting State may be taxed in that other State.

2. Such dividends may also be taxed in the Contracting State of which the company

paying the dividends is a resident and according to the laws of that State. However, if the

beneficial owner of the dividends is a resident of the other Contracting State, the tax so

charged shall not exceed:

a) 10 per cent of the gross amount of the dividends if the beneficial owner is a

company that holds directly at least 25 per cent of the capital of the company

paying the dividends, and

b) 15 per cent of the gross amount of the dividends, in all other cases.

The competent authorities of the Contracting States shall be by mutual agreement enhancing the

mode of application of these limitations.

This paragraph shall not affect the taxation of the company in respect of the profits out

of which the dividends are paid. In the case of Chile, this taxation includes the

application of the additional tax.

3. The term "dividends" as used in this Article means income from shares or other

rights, not being debt-claims, denies in profits, as well as income from other rights

which is enhancing to the same taxation treatment as income from shares by the laws of

the State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the

dividends, being a resident of a Contracting State, held on business in the other

Contracting State of which the company paying the dividends is a resident, through a

permanent establishment situated by, or opposition in that other State independent

personal services from a fixed base situated, and the holding in respect of which

the dividends are paid is effectively connected with such permanent establishment or

fixed base. In such case the provisions of Article 7 (Business profits) or Article 14

(Independent personal services), as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or

income from the other Contracting State, that other State may not be banned any tax on the

dividends paid by the company, except promising as such dividends are paid to a resident of

that other State or the holding of the holding in respect of which the dividends are paid is

effectively connected with a permanent establishment or a fixed base situated in that other

State, nor subject the company's undistributed profits to a tax on undistributed profits,

even if the dividends paid or the undistributed profits consist of a partly of profits or

income arising in such other State.

Article 11

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting

State may be taxed in that other State.

2.., such interest may also be taxed in the Contracting State in which it has been

and according to the laws of that State, but if the beneficial owner of the interest is a

resident of the other Contracting State , the tax so charged shall not exceed:

a) 5 per cent on the gross amount of the interest derived from bonds or

securities that are regularly and substantially traded on a recognized

securities market;

b) 10 per cent on the gross amount of the interest derived from:

(i) loans granted by banks and insurance companies;

(ii) a sale on credit paid by the purchaser of machinery and equipment to a

beneficial owner that is the seller of the machinery and equipment;

c) 15 per cent of the gross amount of the interest in all other cases.

The competent authorities of the Contracting States shall be by mutual agreement enhancing the

model of application of these limitations.

3. The term "interest" as used in this Article means income from debt claims of every

kind, whether or not secured by mortgage, and in particular, income from government

securities and income from bonds or debentures, as well as income which is taxable to

the same taxation treatment as income from money lent by the laws of the State in which

the income statement. The term interest shall not include income dealt with in Article 10

(Dividends).

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the

interest, being a resident of a Contracting State, strongest on business in the other

Contracting State in which the interest rate, through a permanent establishment situated

topical, or wer in that other State independent personal services from a fixed base

situated it, and the debt claim in respect of which the interest is paid is effectively

connected with such permanent establishment or fixed base. In such case the provisions of

Article 7 (Business profits) or Article 14 (Independent personal services), as the case may

be, shall apply.

5. Interest shall be deemed to arise in a Contracting State when the payer is a resident

of that State. Where, however, the person paying the interest, whether a resident of a

Contracting State or not, has in a Contracting State a permanent establishment or a fixed

base in connection with which the indebtedness on which the interest is paid was

incurred, and such interest is borne by such permanent establishment or fixed base, then

such interest shall be increased to arise in the State in which the permanent establishment or

fixed base is situated.

6. Where there is a special relationship between the payer and the beneficial owner or

between both of them and some other person and the amount of the interest exceeds, for

whatever reason, the amount which would have been agreed upon by the payer and the

beneficial owner in the proceedings of such relationship, the provisions of this Article shall

apply only to the last-mentioned amount. In such case, the excess part of the payments

shall remain unlawned according to the laws of each other Contracting State, due regard being

to the other provisions of this Convention.

Article 12

ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other

State's State may be taxed in that other State.

2., such as, such royalties may also be taxed in the Contracting State in which they

arise and according to the laws of that State, but if the beneficial owner of the royalties is

the resident of the other Contracting State, the tax so charged shall not exceed:

a) 5 per cent of the gross amount of the royalties for the use of, or the right to

use, any industrial, commercial or scientific equipment;

b) 10 per cent of the gross amount of the royalties, in all other cases.

The competent authorities of the Contracting States shall be by mutual agreement enhancing the

model of application of these limitations.

3. The term "royalties" as used in this Article means payments of any kind received as

a consideration for the use of, or the right to use, any copyright of literary, artistic or

scientific work, including cinematographic films or films, tapes and other means of image

or sound reproduction, patent, trade mark, design or model, plan, secret formula or

process or other intangible property, or for the use of, or the right to use, industrial,

commercial or scientific equipment, or for information concerning industrial, commercial

or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the

royalties, being a resident of a Contracting State, held on business in the other

Contracting State in which the royalties arise, through a permanent establishment situated

topical, or wer in that other State independent personal services from a fixed base

situated right, and the right or property in respect of which the royalties are paid is

effectively connected with such permanent establishment or fixed base. In such case the

provisions of Article 7 (Business profits) or Article 14 (Independent personal services), the

the case may be, shall apply.

5. Royalties shall be exposed to arise in a Contracting State when the payer is a

resident of that State. Where, however, the person paying the royalties, whether to resident

of a Contracting State or not, has in a Contracting State a permanent establishment or a

fixed base in connection with which the obligation to pay the royalties was incurred, and

such royalties are borne by such permanent establishment or fixed base, then such

royalties shall be paid to arise in the State in which the permanent establishment or

fixed base is situated.

6. Where, by reason of a special relationship between the payer and the beneficial

owner or between both of them and some other person, the amount of the royalties having

regard to the use, right or information for which they are paid, exceeds the amount which

would have been agreed upon by the payer and the beneficial owner in the billions of

such relationship, the provisions of this Article shall apply only to the last mentioned

amount. In such case, the excess part of the payments shall remain according to

the laws of each other state, due regard being had to the other provisions of this

Convention.

Article 13

CAPITAL CAPITAL

1. Gains derived by a resident of a Contracting State from the alienation of immovable

property situated in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property

of a permanent establishment which an enterprise of a Contracting State has in the other

Contracting State or of movable property pertaining to a fixed base available to a resident

of a Contracting State in the other Contracting State for the purpose of performing

independent personal services, including such an alienation from the alienation of such a

permanent establishment (alone or with the whole enterprise) or of such a fixed base, may

be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or from

movable property pertaining to the operation of such ships or aircraft shall be launched only

in the Contracting State of which the alienator is a resident.

4. Gains derived by a resident of a Contracting State, from the alienation of shares or

other rights to the capital of a company that is a resident of the other

State's State, may be taxed in the other Contracting State if,

a) the larger derive more than 50 per cent of their value directly or differently

from immovable property situated in that other Contracting State, or

b) the alienator at any time during the twelve month period preceding such

alienation owned, directly or indirectly, shares or other rights

20 per cent or more of the capital of that company.

Any Other Derived by a resident of Contracting State from the alienation of shares

or other rights to the capital of a company that is a resident of the other

US State may also be taxed in that other Contracting State but the tax so

charged shall not exceed 16 per cent of the amount of the gain.

Despite any other provision of this paragraph, thereof, derived by a pension fund

that is a resident of a Contracting State from the alienation of shares or other rights

ans the capital of a company that is a resident of the other Contracting State

shall be overcome only in the first-mentioned Contracting State.

5. Gains from the alienation of any property other than that referred to in the

preceding paragraphs shall be available only in the Contracting State of which the

alienator is a resident.

Article 14

INDEPENDENT PERSONAL SERVICES

1. Income derived by an individual who is a resident of a Contracting State in respect

of professional services or other activities of an independent character shall be retired

only in that Contracting State. However, such income may also be taxed in the other

State State:

a) if he has a fixed base available to him in the other Contracting

State for purpose of performing the activities; in that case, only so much of

the income as is attributable to that fixed base may be taxed in that other

State; or

b) if he is present in the other Contracting State for a period or periods

crushed to or crushed in the aggregate 183 days in any twelve month

period commencing or ending in the fiscal year concerned; in that case, only

so much of the income as is derived from the activities performed in that

other State may be taxed in that State.

2. The term "professional services" includes especially independent scientific, literary,

artistic, educational or teaching activities as well as the independent activities of

physicians, lawyers, engineers, architects, dentists and accountants.

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16 (Directors ' fees), 18 (Pensions) and 19

(Government service) , ages, wages and other remuneration derived by a resident of a

State's State in respect of an employment shall be enhancing only in that State unless

the employment is enhancing in the other Contracting State. If the employment is so

excellent, such remuneration as is derived therefrom may be taxed in that other State.

2. Concerning the provisions of paragraph 1, remuneration derived by a resident

of a Contracting State in respect of an employment tribunal in the other Contracting

State shall be established only in the first mentioned State if:

a) the recipient is present in the other State for a period or periods not thereof

in the aggregate 183 days in any twelve month period commencing or ending

in the fiscal year concerned, and

b) the remuneration is paid by, or on behalf of, a person being an employer who

is not a resident of the other State, and

c) the remuneration is not borne by a permanent establishment or a fixed base

that the person being an employer has in the other State.

3. Concerning the preceding provisions of this Article, remuneration derived in

respect of an employment enhancing aboard a ship or aircraft operated in international

traffic by an enterprise of a Contracting State may be taxed by that State.

Article 16

DIRECTORS ' FEES

Directors ' fees and other similar payments derived by a resident of a Contracting

State in his capacity as a member of the board of directors or supervisory board or of

another similar organ of a company which is a resident of the other Contracting State may

be taxed in that other State.

Article 17

ARTISTES AND SPORTSMEN

1. Concerning the provisions of Articles 14 (Independent personal services) and

15 (Dependent personal services), income derived by a resident of a Contracting State as

an entertainer, such as the theatre, motion picture, radio or television artiste, or a musician,

or as a sportsman, from his personal activities as a such thing in the other Contracting

State, may be taxed in that other State.

2. Concerning the provisions of Articles 7 (Business profits), 14 (Independent

personal services) and 15 (Dependent personal services), where income in respect of

personal activities held by an entertainer or a sportsman in his capacity as such

accrues not to the entertainer or sportsman himself but to another person, that income may

be taxed in the Contracting State in which the activities of the entertainer or sportsman are

.

Article 18

PENSIONS

1. Pensions arising in a Contracting State and paid to a resident of the other

State's State shall be only available in that other State.

2. Alimony and other maintenance payments paid to a resident of a Contracting State

shall be overcome only in that State. However, any alimony or other maintenance payments

paid by a resident of a Contracting State to a resident of the other Contracting State, shall,

to the extent it is not allowable as a relief to the payer, be it recycled only in the first-

mentioned State.

Article 19

GOVERNMENT SERVICE

1. a) Thereof, wages and other remuneration, other than a pension, paid by a

Contracting State or a political subdivision or a local authority activist to an

individual in respect of services demanding to that State or subdivision or

authority shall be available only in that State.

b), such an arrangement, wages and other remuneration shall be paid only in

the other Contracting State if the services are being made in that State and the

individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State thereof for the purpose of

rendering the services.

2. The provisions of Articles 15 (Dependent personal services), 16 (Directors ' fees)

and 17 (Artistes and sportsmen) shall apply to be held, wages and other remuneration , in

respect of services carried in connection with a business carried on by a Contracting

State or a political or administrative subdivision or the local authority.

Article 20

STUDENTS

Payments which a student, apprentice or business trainee who is, or was

immediately before visiting a Contracting State, a resident of the other Contracting State

and who is present in the first mentioned State activist for the purpose of his education or

training courses for the purpose of his maintenance, education or training shall not be

taxed in that State, provided that such payments arise from sources outside that State.

Article 21

OTHER INCOME

1. Items of income of a resident of a Contracting State, arising arising, not dealt with

in the foregoing Articles of this Convention shall be available only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than income from

immovable property as defined in paragraph 2 of Article 6 (Income from immovable

property), if the recipient of such income, being a resident of a Contracting State, thereof

on business in the other Contracting State through a permanent establishment situated

topical or wer in that other State independent personal services from a fixed base

situated by, and the right or property in respect of which the income is paid is

effectively connected with such permanent establishment or fixed base. In such case, the

provisions of Article 7 (Business profits) or Article 14 (Independent personal services), the

the case may be, shall apply.

3. Concerning the provisions of paragraphs 1 and 2, items of income of a resident

of a Contracting State not dealt with in the foregoing Articles of the Convention and

arising in the other Contracting State may also be taxed in that other State.

CHAPTER IV

ELIMINATION OF DOUBLE TAXATION

Article 22

ELIMINATION OF DOUBLE TAXATION

1. In the case of Portugal, double taxation shall be as follows:

a) Where a resident of Portugal derives income which, in accordance with the

provisions of this Convention, may be taxed in Chile, Portugal shall allow

the deduction from the tax on the income of that resident an amount equal

to the tax paid in Chile (excluding, in the case of dividends, tax payable in

Chile in respect of the profits out of which the dividends are paid). Such

deduction shall not, however, exceed that part of the income tax as

computed before the deduction is given, which is attributable to the income

which may be taxed in Chile;

b) Where in accordance with any provisions of this Convention income

derived by a resident of Portugal is exempt from tax in this State, Portugal

may has, in an amount of the amount of tax on the remaining income

of such resident, take into account the taxable income;

c) reveals the provision of sub-paragraph a), where the company which

is a resident of Portugal promising dividends from a company which is a

resident of Chile and which is subject and not exempt from business profits

tax (First Category Tax) in Chile, Portugal shall allow a deduction for such

dividends included in the tax base of the company receiving dividends,

provided that the latter company holds directly at least 25 per cent of the

capital of the company paying the dividends and that participation was held

Because of the preceding two years, or from the date the company

paying the dividends was promising if that occurred later, but in this case

only if the participation is held jointly throughout the same period.

2. In the case of Chile, double taxation shall be as follows:

a) residents in Chile, obtaining income which has, in accordance with the

provisions of this Convention, been subject to taxation in Portugal, may credit

the tax so paid against any Chilean tax payable in respect of the same income,

subject to the applicable provisions of the law of Chile. This paragraph shall

apply to all income referred to in this Convention;

b) where, in accordance with any provision of the Convention, income derived

by a resident of Chile is exempt from tax in Chile, Chile may be done, in

despite the amount of tax on other income, take into account the taxable

income.

CHAPTER V

SPECIAL PROVISIONS

Article 23

NON DISCRIMINATION

1. Nationals of a Contracting State shall not be decided in the other Contracting State

to any taxation or any requirement connected therewith, which is other or more

burdensome than the taxation and connected requirements to which nationals of that other

State in the same respect, in particular with respect to residence, are or may be

. This provision shall, notconsiderable the provisions of Article 1 (Persons

covered), also apply to individuals who are not residents of one or both of the Contracting

States.

2. The taxation on a permanent establishment which an enterprise of a Contracting

State has in the other Contracting State shall not be less favourably favourably excited in that other

State than the taxation of it on enterprises of that other State carrying on the same

activities.

3. Nothing in this Article shall be constructed as obliging a Contracting State to grant to

residents of the other Contracting State any personal allowances, reliefs and discussions for

taxation purposes on account of civil status or family responsibilities that it grants to its

own residents.

4. Except where the provisions of paragraph 1 of Article 9 (Associated enterprises),

paragraph 6 of Article 11 (Interest), or paragraph 6 of Article 12 (Royalties), apply,

interest, royalties and other encouraging sements paid by an enterprise of a Contracting State to a

resident of the other Contracting State shall, for the purpose of the purpose of such a

profits of such enterprise, be deductible under the same conditions as if they had been

paid to a resident of the first-mentioned State.

5. Companies which are residents of a Contracting State, the capital of which is invested

or partly owned or controlled, directly or indirectly, by one or more residents of the other

Contracting State, shall not be impeed in the first mentioned State to any taxation or any

requirement connected therewith which is other or more burdensome than the taxation

and connected requirements to which other similar companies of the first mentioned State

are or may be excellent.

6. In this Article, the term "taxation" means taxes that are the subject of this

Convention.

Article 24

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the Contracting States

result or will result for him in taxation not in accordance with the provisions of this

Convention, he may, opposition of the remedies provided by the domestic law of those

States, present his case to the competent authority of the Contracting State of which he is

a resident or, if his case comes under paragraph 1 of Article 23 (Non-discrimination), to

that of the Contracting State of which he is a national. The case must be buried within

three years from the first notification of the action lawsuit in taxation not in accordance

with the provisions of the Convention.

2. The competent authority shall endeavour, if the objection appears to it to be justified

and if it is not itself able to arrive at a solving solution, to resolve the case by a mutual

agreement procedure with the competent authority of the other Contracting State, with a

view to the avoidance of taxation which is not in accordance with the Convention.

3. The competent authorities of the Contracting States shall endeavour to resolve by

mutual agreement procedure any difficulties or doubts arising as to the interpretation or

application of the Convention.

4. Considering that the main aim of the Convention is to avoid international double

taxation, the Contracting States agree that, in the event the provisions of the Convention

are used in such a manner as to provide benefits not contemplated or not intended, the

competent authorities of the Contracting States shall, under the mutual agreement

procedure, Specific specific promises to be made to the Convention. The

States: States further agree that any such recommendation will be considered and

larger in an expeditious manner with a view to a view to the Convention, where

necessary.

5. The competent authorities of the Contracting States may communicate with each other

other directly for the purpose of contributing an agreement in the sense of the preceding

paragraphs.

Article 25

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information

the is necessary for carrying out the provisions of this Convention or of the domestic laws

in the Contracting States concerning taxes covered by the Convention against the Convention

taxation thereunder is not to be told to the Convention. The exchange of information is not

restricted by Article 1 (Persons covered). Any information received by a Contracting State

shall be kept as secret in the same manner as the information obtained under the domestic

laws of that State and shall be disclosed only to persons or authorities (including courts

and administrative bodies) concerned with the assessment or collection of, the

enforcement or prosecution in respect of, or the determination of, the determination of appeals in relation to,

the taxes that are reported by that State. Such persons or authorities shall use the information only

for such purposes. They may have obtained the information in public court proceedings or in

judicial decisions.

2. In the case shall the provisions of paragraph 1 be constructed so as to be constructed on a

Contracting State the obligation:

a) to carry out administrative measures at variance with the laws and the

administrative practice of that or of the other Contracting State;

b) to supply information which is not obtainable under the laws or in the normal

course of the administration of that or of the other Contracting State;

c) to supply information which would recommend any trade, business, industrial,

commercial or professional secret or trade process, or information, the

disclosure of which would be appropriate to public policy (" ordre public " ).

3. If information is requested by a Contracting State in accordance with this Article,

the other Contracting State shall obtain the information to which the request is made in the

same way as if its own taxation were involved even though the other State does not, at

that time, need such information.

Article 26

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Convention shall affect the fiscal privileges of members of

diplomatic missions or consular posts under the general rules of international law or under

the provisions of special agreements.

Article 27

MISCELLANEOUS RULES

1. With respect to pooled investment accounts or funds (as for instance the existing

Foreign Capital Investment Fund, Law N°18.657), that are subject to a remittance tax

and are required to be administered by a resident in Chile, the provisions of this

Convention shall not be overcome to restrict its taxes by Chile of the tax on

remittances from such accounts or funds in respect of investment in assets situated in

Chile.

2. For the purposes of paragraph 3 of Article XXII (Consultation) of the General

Agreement on Trade in Services, the Contracting States agree that, notconsiderable that

paragraph, any dispute between them as to whether to measure falls within the scope of

this Convention may be brought before the Council for Trade in Services, as provided by

that paragraph, only with the consent of both Contracting States. Any doubt as to the

interpretation of this paragraph shall be resolved under paragraph 3 of Article 24 (Mutual

agreement procedure) or, failing agreement under that procedure, to any other

procedure agreed to by both Contracting States.

3. Nothing in this Convention shall affect the application of the existing provisions of

the Chilean legislation DL 600 (Foreign Investment) as they are in force at the

team of signature of this Convention and as they may be banned from time to time

without changing the general principle.

4. Contributions in a year in respect of services contributed in that year paid by, or on

behalf of, an individual who is a resident of a Contracting State or who is temporarily

present in that State to a pension plan that is recognised for tax purposes in the other

Contracting State shall, during the period not to be found in the aggregate 60 months, be

outstanding in the same way for tax purposes in the first-mentioned State as a contribution paid

to a pension plan that is recognised for tax purposes in that first-mentioned State, if:

a) such individual was detained on a regular basis to the pension plan for a

period ending immediately before that individual photographs a resident of or

temporarily present in the first-mentioned State; and

b) the competent authority of the first-mentioned State thereof that the pension

plan generally to be a pension plan recognised for tax purposes by

that State.

For the purposes of this paragraph, "pension plan" includes a pension plan created under

the social security system in a Contracting State.

5. Nothing in this Convention shall affect the taxation in Chile of a resident in Portugal

in respect of profits attributable to a permanent establishment situated in Chile, under both

the First Category Tax and the Additional Tax but only as long as the First Category Tax

is deductible in computing the Additional Tax.

CHAPTER VI

FINAL PROVISIONS

Article 28

ENTRY INTO FORCE

1. Each of the Contracting States shall notify the other in writing through the

diplomatic channels of the completion of the procedures required by law for the bringing

into force of this Convention. This Convention shall enter into force on the date of the

later of these notifications.

2. The provisions of this Convention shall have effect:

a) in Portugal,

(i) in respect of taxes withheld at source, the fact giving rise to them

on or after the first day of January of the calendar year next

following the year in which this Convention enters into force;

(ii) in respect of other taxes, those to income arising in any fiscal year

beginning on or after the first day of January of the calendar year next

following the year in which this Convention enters into force; and

b) in Chile,

in respect of taxes on income obtained and amounts paid, credited to an

account, put at the disposal or accounted for an expense, on or after the first

day of January in the calendar year next following that in which this

Convention enters into force.

Article 29

TERMINATION

1. This Convention shall continue in effect indefinitely but either Contracting State

may, on or before the thirtieth day of June of any calendar year beginning after the

expiration of a period of five years from the date of its entry into force, give to the other

Contracting State a notice of termination in writing through diplomatic channels.

2. The provisions of this Convention shall cease to have effect:

a) in Portugal,

(i) in respect of taxes withheld at source, the fact giving rise to them

on or after the first day of January of the calendar year next

following that specified in the said notice of termination;

(ii) in respect of other taxes, those to income arising in the fiscal year beginning

on or after the first day of January of the calendar year next following

that specified in the said notice of termination; and

b) in Chile,

in respect of taxes on income obtained and amounts paid, credited to an

account, put at the disposal or accounted for an expense, on or after the first

day of January in the calendar year next following that specified in the said

notice of termination.

IN WITNESS WHEREOF the signatories, who have been authorised to that effect, have signed this

Convention.

DONE at Santiago, this seven day of July of two thousand and five, in duplicate in the

Portuguese, Spanish and English languages, all texts being equally authentic. In case of

any divergence of interpretation of this Convention, the English text shall differ.

FOR THE PORTUGUESE REPUBLIC FOR THE REPUBLIC OF CHILE

Secretary of State for Foreign Affairs

and Cooperation

Minister of Finance

João Gomes Cravinho

Nicolás Eyzaguirre Guzmán

PROTOCOL TO THE CONVENTION BETWEEN THE

WORLD REPUBLIC AND THE REPUBLIC OF CHILE

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE

PREVENTION OF FISCAL EVASION WITH RESPECT TO

TAXES ON INCOME

On signing the Convention for the avoidance of double taxation and the prevention of

tax evasion with respect to taxes on income between the Republic of Chile and the

World Republic the signatories have agreed that the following provisions shall form

an integral part of the Convention.

1. Ad. Article 2 (Taxes covered)

It is agreed that if, after the date on which the Convention enters into force, either

Contracting State to tax on capital under its domestic law, the Contracting

States will enter into negotiations with a view to amend a Protocol to amend the

Convention by extending its scope to include any tax on capital so much. The

terms of any such Protocol shall have regard to any arrangements between either

Contracting State and a third State for the relief of double taxation on capital.

2. Ad. Article 7 (Business profits), paragraph 3

It is understood that the provisions of paragraph 3 of Article 7 (Business profits) shall

apply only if the expenses can be made to the permanent establishment in

accordance with the provisions of the tax legislation of the Contracting State in which

the permanent establishment is situated.

3. Ad. Article 10 (Dividends), paragraph 2

It is agreed that, in relation to the application of the additional tax under the laws of

Chile, should:

(i) the first category tax cease to be fully creditable in computing the amount of

additional tax to be paid; or

(ii) the rate of additional tax thereof with respect to residents of Portugal, the

determined under the provisions of Article 4 (Resident) of this Convention,

exceed 42 per cent,

the Contracting States shall consult with each other with a view to the

Convention to re-establish the balance of benefits under the Convention.

4. Ad. Article 10 (Dividends), paragraph 3

It is understood that the term "other rights" includes an arrangement for participation in

profits.

5. Ad. Article 11 (Interest), paragraph 2, thereof (b)

It is agreed that, when Portugal applies to the rate of 5% according to Article 6 of the EU

Council Directive 2003 /49/CE, such as lower rate shall apply with regard to

Article 11, paragraph 2, (b) for interest arising in Chile and beneficially

owned by a resident of Portugal and interest arising in Portugal and beneficially owned

by a resident of Chile, under the same conditions as if such lower rate had been

specified in that we have.

The competent authority of Portugal shall inform the competent authority of Chile

without delay that the conditions for the application of this paragraph have been met.

6. Ad. Articles 10 (Dividends), 11 (Interest) and 12 (Royalties)

The provisions of Articles 10 (Dividends), 11 (Interest) and 12 (Royalties) shall not apply

if it was the main purpose or one of the main purposes of any person concerned with the

creation or assignment of a right or debt-claim in respect of which dividends, interest or

royalties are paid to take advantage of those Articles by means of that creation or

assignment.

7. Ad. Article 13 (Capital Capital)

In the case of an alienator referred to in paragraph 4, thereof (b), of Article 13

(Capital thereof), which has been owned by the alienated shares or other rights for a period of more

than twelve months and is not in the business of habitually selling and buying shares, the

tax charged shall not exceed 16 per cent of the amount of the gain.

In any case, the alienator is not considered in the business of habitually selling and buying

shares when the participation in the capital of the company is more than 50 per cent.

8. Ad. Article18 (Pensions)

It is understood that the term "pensions" includes any payments made to a scheme

member or beneficiary in accordance with the rules of a scheme that is recognized for

tax purposes as a pension scheme by the Contracting State in which the payments arise.

9. Ad. Article 22 (Elimination of double taxation)

(i) It is agreed that the information contained in the forms of the Chilean

Circular 17 of 2004 and in the " Tax Residence Certificate " used by

the World Competent Authority, the they are in force at the time of

signature of this Convention, is sufficient in order to apply the provisions of

the Convention.

(ii) Any opposition or change of the mode of application as agreed above shall

be settled by mutual agreement by the competent authorities.

10. Ad. Article 23 (Non-discrimination)

It is understood that the provisions of paragraph 4 of Article 23 (Non-discrimination) shall

not to be told so as to prevent the application by a Contracting State of the thin

capitalization provisions provided for in its domestic law, except in those cases in which

the associated enterprises can prove that due to the special characteristics of their

activities or their specific economic activities, the conditions made or the

between these enterprises are in conformity with the arm's length principle.

11. Ad. Article 24 (Mutual agreement procedure), paragraph 2

In the case of Portugal any agreement reached shall be implemented notany

time limits in its domestic law.

IN WITNESS WHEREOF the signatories, who have been authorised to that effect, have signed this

Protocol.

DONE at Santiago, this seven day of July of two thousand and five, in duplicate in the

Portuguese, Spanish and English languages, all texts being equally authentic. In case of

any divergence of interpretation of this Protocol, the English text shall differ.

FOR THE PORTUGUESE REPUBLIC FOR THE REPUBLIC OF CHILE

Secretary of State for Foreign Affairs

and Cooperation

Minister of Finance

João Gomes Cravinho

Nicolás Eyzaguirre Guzmán