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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


General Definitions

(1) For the purposes of this Convention, unless the context otherwise requires:

  • (a) the term "United Arab Emirates" when used in a geographical sense, means the territory of the United Arab Emirates which is under its sovereignty as well as the area outside the territorial water, airspace and submarine areas over which the United Arab Emirates exercises, sovereign and jurisdictional rights in respect of any activity carried on in its water, seabed, subsoil, in connection with the exploration for or the exploitation of natural resources by virtue of its law and international law;
  • (b) the term "Chile" means the Republic of Chile, including its territorial sea, and all the area beyond its territorial sea, including the seabed and subsoil thereof, over which the Republic of Chile has sovereign rights in accordance with international law;
  • (c) the terms "a Contracting State" and "the other Contracting State" mean United Arab Emirates or Chile, as the context requires;
  • (d) the term "person" includes an individual, a company and any other body of persons, as well as a recognised pension fund;
  • (e) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;
  • (f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
  • (g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
  • (h) the term "competent authority" means:
    • (i) in the case of United Arab Emirates, the Minister of Finance or his authorised representative; and
    • (ii) in the case of Chile, the Minister of Finance, the Commissioner of the Revenue Service or their authorised representatives;
  • (i) the term "national", in relation to a Contracting State, means:
    • (i) any individual possessing the nationality of that Contracting State; and
    • (ii) any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State; and
  • (j) the term "recognised pension fund" of a Contracting State means any person, entity or arrangement established in that Contracting State and that is:
    • (i) generally exempt from taxation in that Contracting State; and
    • (ii) established and operated exclusively or almost exclusively to administer or provide retirement benefits and ancillary or incidental benefits to individuals and that is regulated as such by that Contracting State; or
    • (iii) that is established and operated exclusively or almost exclusively to invest hinds for the benefit of persons, entities or arrangements referred to in subdivision (ii).
  • A recognised pension fund of a Contracting State shall be treated as the beneficial owner of the income it receives.
  • In the case of the United Arab Emirates, in particular the following pension funds are a recognised pension fund:
    • (i) Abu Dhabi Retirement Pensions and Benefits Fund;
    • (ii) General Pension and Social Security Authority.
  • In the case of Chile, in particular a pension fund established under the pension system of Decree Law N° 3500 is a recognised pension fund.
  • (k) the expression "Contracting State and any political subdivision or local government thereof" includes an entity established in a Contracting State and that is wholly (100%) owned directly or indirectly by that Contracting State or any political subdivision or local government thereof. The entity must provide a document issued by the competent authority of the Contracting State certifying that the entity complies with the requirements of this sub-paragraph (k). Such document shall be presented and agreed in accordance with article 25 of this Convention (Mutual Agreement Procedure).
  • Notwithstanding this sub-paragraph, in the case of the United Arab Emirates, the following entities are such entities and do not need to present such a document:
    • (i) Abu Dhabi Investment Authority;
    • (ii) Abu Dhabi Investment Council;
    • (iii) Mubadala Investment Company;
    • (iv) Dubai World;
    • (v) Investment Corporation of Dubai (ICD); and
    • (vi) Emirates Investment Authority.

(2) As regards the application of this Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the laws of that Contracting State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that Contracting State prevailing over a meaning given to the term under other laws of that Contracting State.