Vanessa Piedrahita Analyzes the U.S.-Chile Tax Treaty’s Impact on Businesses

June 11, 2024 – Vanessa Piedrahita, tax partner and Latin America practice leader at Aprio, provided detailed analysis of the newly approved U.S.-Chile Tax Treaty in a June 4, 2024, article with Bloomberg Tax. The treaty, which fully took effect on Feb. 1, 2024, aims to eliminate double taxation, offer foreign tax credits, and facilitate lithium-ion imports. Vanessa cautioned that businesses should thoroughly review the treaty’s requirements, including value-added tax (VAT) and limitations on benefits, to maximize its advantages.

Vanessa highlighted the importance of understanding the timing and withholding provisions of the treaty to avoid potential penalties. She explained that businesses that misinterpret these dates might face underpayment or over-withholding issues, risking penalties from tax authorities in both countries. Additionally, she emphasized the need for entities to confirm their qualification for treaty benefits. Failing to do so could result in higher-than-expected tax liabilities, negatively impacting business operations.

To read the full article, visit Bloomberg Tax.