New DTT with Chile

UniCredit Bank Austria AG
Summary: 
New DTT between Austria and Chile becomes applicable as of 1 January 2016
Thu, 31/12/2015

The Republic of Austria and the Republic of Chile entered into a new Convention on the avoidance of double taxation in respect of taxes on income and on capital.

The maximum withholding tax rates stipulated in the treaty are as follows:

Article 10 – Dividends

15% of the gross amount of the dividends

Article 11 – Interest

(i) 15% of the gross amount of the interest

(ii) 5% of the gross amount of the interest derived from:

a) Loans granted by banks and insurance companies
b) Bonds or securities that are regularly and substantially traded on a recognised securities market
c) Sale on credit paid by purchase of machinery and equipment to a beneficially owner that is the seller of the machinery and equipment

The convention is already into force and has effect in respect of taxes for any fiscal year beginning on / after 1 January 2016

 

Impact on investors: The new DTT between Austria and Chile will create a more favorable tax environment for eligible investors from both countries.