Senator Bob Menéndez ( D-N.J. ), Chairman of the Foreign Relations Committee, today issued the following statements after the approval by the committee of the Convention between the governments of the United States and the Republic of Chile, also known as the Tax Treaty with Chile. Approved by a margin of 20 to 1, the treaty represents a historic step in bilateral relations between the United States. USA and Chile and US investments in Latin America.
"Today's historic vote is yet another recognition of the great legacy of collaboration that exists between the US and Chile. As we celebrate 200 years of partnership between our two countries, the work to advance our economic goals has never been more important.
"This treaty is essential to strengthen the competitiveness of the United States and increase our country's foreign direct investment in Chile, an important democratic partner. The US private sector strongly supports the — treaty, an essential tool for the effective enforcement of United States tax laws. Furthermore, as China follows its aggressive economic practices in the Americas and seeks to monopolize critical mineral supply chains, This treaty is especially essential to diversify supply chains.
"Chile remains an important partner for our nation as we work together to promote prosperity and security throughout the Western Hemisphere. In the coming years, I look forward to new opportunities to collaborate on these shared objectives through the application of the Tax Treaty with Chile. I am committed to working with my colleagues in the Senate to ensure full approval of the Treaty, and with our counterparts in Chile and with the Chilean-American community to build on this solid foundation — by strengthening the ties of our nations for future generations ”.
Information on the Tax Treaty with Chile:
The treaty would reduce double taxation and retention rates and, in general, is consistent with the United States Tax Treaty Model. If ratified, this tax treaty will be the third in the United States with a Latin American country. The American community has long urged the Department of the Treasury that expands our network of fiscal agreements in the region. On three previous occasions, the bill was approved by the Senate Foreign Relations Committee, the last time in 2022.
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