U
.
S
.
GOVERNMENT PRINTING OFFICE
WASHINGTON
:
1
19–112
SENATE
" !
112
TH
C
ONGRESS
2d Session
T
REATY
D
OC
.
2012
112–8
TAX CONVENTION WITH CHILE
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED
STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC
OF CHILE FOR THE AVOIDANCE OF DOUBLE TAXATION AND
THE PREVENTION OF FISCAL EVASION WITH RESPECT TO
TAXES ON INCOME AND CAPITAL, SIGNED IN WASHINGTON ON
FEBRUARY 4, 2010, WITH A PROTOCOL SIGNED THE SAME DAY,
AS CORRECTED BY EXCHANGES OF NOTES EFFECTED FEB-
RUARY 25, 2011, AND FEBRUARY 10 AND 21, 2012, AND A RE-
LATED AGREEMENT EFFECTED BY EXCHANGE OF NOTES (THE
‘‘RELATED AGREEMENT ’’) ON FEBRUARY 4, 2010
M
AY
17, 2012.—Treaty was read the first time, and together with the
accompanying papers, referred to the Committee on Foreign Relations
and ordered to be printed for the use of the Senate
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(III)
LETTER OF TRANSMITTAL
T
HE
W
HITE
H
OUSE
, May 17, 2012.
To the Senate of the United States:
I transmit herewith, for the advice and consent of the Senate to
their ratification, the Convention between the Government of the
United States of America and the Government of the Republic of
Chile for the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with Respect to Taxes on Income and Capital,
signed in Washington on February 4, 2010, with a Protocol signed
the same day, as corrected by exchanges of notes effected February
25, 2011, and February 10 and 21, 2012, and a related agreement
effected by exchange of notes (the ‘‘related Agreement’’) on Feb-
ruary 4, 2010. I also transmit for the information of the Senate the
report of the Department of State, which includes an Overview of
the proposed Convention, the Protocol, and related Agreement.
The proposed Convention, Protocol, and related Agreement (to-
gether ‘‘proposed Treaty’’) would be the first bilateral income tax
treaty between the United States and Chile. The proposed Treaty
contains comprehensive provisions designed to address ‘‘treaty
shopping,’’ which is the inappropriate use of a tax treaty by resi-
dents of a third country, and provides for a robust exchange of in-
formation between the tax authorities in the two countries to facili-
tate the administration of each country’s tax laws.
I recommend that the Senate give early and favorable consider-
ation to the proposed Treaty and give its advice and consent to the
ratification thereof.
B
ARACK
O
BAMA
.
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(V)
LETTER OF SUBMITTAL
D
EPARTMENT OF
S
TATE
,
Washington, March 22, 2012.
The P
RESIDENT
,
The White House.
T
HE
P
RESIDENT
: I have the honor to submit to you, with a view
to their transmission to the Senate for advice and consent to ratifi-
cation, the Convention between the Government of the United
States of America and the Government of the Republic of Chile for
the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with Respect to Taxes on Income and Capital, signed at
Washington February 4, 2010, together with a Protocol to the Con-
vention signed the same day, as corrected by exchanges of notes ef-
fected February 25, 2011, and February 10 and 21, 2012, and a re-
lated agreement effected by exchange of notes on February 4, 2010
(‘‘related Agreement’’).
The proposed Convention, its Protocol, and the related Agree-
ment (together ‘‘proposed Treaty’’) would be the first bilateral in-
come tax treaty between the United States and Chile. The proposed
Treaty contains comprehensive provisions designed to address
‘‘treaty shopping,’’ which is the inappropriate use of a tax treaty by
residents of a third country. The proposed Treaty also provides for
robust exchange of information between tax authorities in the two
countries to facilitate the administration of each country’s tax laws.
The proposed Treaty generally follows the current U.S. Model In-
come Tax Convention and the current Organization for Economic
Cooperation and Development standards for exchange of informa-
tion for tax purposes. An overview of key provisions of the proposed
Treaty is enclosed with this report.
The proposed Convention is self-executing. I recommend that the
proposed Treaty be transmitted to the Senate for its advice and
consent to ratification. The Department of the Treasury and the
Department of State cooperated in the negotiation of the proposed
Treaty, and the Department of the Treasury joins the Department
of State in recommending that the proposed Treaty be transmitted
to the Senate as soon as possible for its advice and consent to rati-
fication.
Respectfully submitted,
H
ILLARY
R
ODHAM
C
LINTON
.
Enclosures: As stated.
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(1)
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