Australia - Chile Tax Treaty

Once in effect, the tax treaty signed 10 March 2010 provides for a 5% withholding tax on dividends paid to a company that holds directly at least 10% of the voting power of the payer; otherwise, the tax rate will be 15%.

As a result of special wording in the tax treaty, the reduced tax rates will not apply to Chile. Therefore, dividends distributed from Chile will be subject to the 35% domestic tax rate. However, the 17% corporate tax rate will be creditable against the withholding tax on dividends.

Interest derived by a financial institution that is unrelated to and dealing wholly independently with the payer will be taxed at a 15% tax rate; otherwise, the tax rate will be 10%. Tax rate on royalties paid for the use of industrial, commercial or scientific equipment will be 5%; in all other cases, the tax rate will be 10%.