The U.S. Chamber of Commerce has published a letter dated 17 March 2022 that was sent to the Senate Committee on Foreign Relations, urging the Committee to support the ratification of the pending 2010 income and capital tax treaty with Chile.
Dear Chairman Menendez and Ranking Member Risch:
The U.S. Chamber of Commerce strongly supports the U.S.-Chile Tax Treaty ("Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income and Capital") and urges the Committee to support its prompt ratification this year.
Approval of this treaty has become an urgent priority for U.S. companies doing business in Chile. Due to changes in Chilean tax legislation that went into effect in 2014, corporate tax rates in Chile have increased. Without a ratified treaty to avoid double taxation, taxes on U.S. companies with Chilean operations will climb as high as 44%. However, companies headquartered in the two dozen European, Asian, and Western Hemisphere countries with which Chile already has a tax treaty in force will benefit from a much lower tax rate and would thus secure a significant competitive advantage over their U.S. competitors. Senate action is required to spare U.S. workers and companies this unfair treatment.
This treaty would also benefit a growing number of Chilean companies that are keen to increase their investments in the United States. These investments have the potential to create thousands of good jobs.
The Chamber urges the Committee to advance this treaty expeditiously.