Argentina Terminates Double Taxation Treaty with Chile

Argentina decided to terminate the treaty executed with the Republic of Chile for avoiding double taxation with respect to taxes on income, profit, and capital and assets as of December 31, 2012.
Such treaty executed between Argentina and Chile on 1976 and ratified in 1986, provides for the general principle in connection with income tax that regardless the nationality or domicile of citizens or the place where the relevant contract is executed, income tax, profits or benefits of any nature shall be taxable only in the contracting State, where such income, profit or benefits have its source of production, with certain exceptions.
In connection with corporate income (dividends) these should only be taxable in the contracting State where the relevant company has its domicile.
Regarding wealth or personal assets tax, the treaty provides that assets located in the territory of a contracting State shall be taxable only by such State. Therefore, securities (bonds, shares, etc) should be taxed by the country where the debtor or issuing company is domiciled.

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