Agreement in Principle on Tax Convention with Republic of Chile
1. The Government of Japan and the Government of the Republic of Chile have agreed in principle on the draft Convention between Japan and the Republic of Chile for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance.
2. The draft Convention aims to further promote investment and economic exchanges between the two countries by clarifying taxation on cross-border investment and economic activities between the two countries and adjusting international double taxation as well as introducing mutual agreement procedures (including arbitration proceedings) for the tax authorities to resolve disputes on tax matters between the two countries. The draft Convention also provides for effective exchange of information regarding tax matters between the tax authorities in accordance with the international standards and is expected to contribute to prevention of international tax evasion and tax avoidance.
3. The draft Convention will be signed after the final text have been fixed and the necessary internal procedures have been completed by each of the two Governments. Thereafter, the Convention will enter into force after the completion of the approval process on both countries (in the case of Japan, approval by the Diet).