SANTIAGO, Oct 17 (Reuters) - An agreement to eliminate double taxation between Chile and Argentina will go into effect on Jan. 1, officials from the two South American countries announced on Monday.
“This will bring about a greater flow of investment, commerce, services and technology between these two nations, and it provides companies with the tax certainty that they need,” Chilean Finance Minister Rodrigo Valdes told reporters at a press conference in the Chilean capital, Santiago.
Under the new rules, companies that operate in both countries will often be subject only to corporate taxes in their home country. Taxes on dividends, wealth, gifts, and transportation are set to be included.
In a statement, the Chilean Finance Ministry pointed to state transport companies that operate between Chile and Argentina as among the beneficiaries of the new tax scheme, which would include Argentine state airline carrier Aerolineas Argentinas.
Argentine President Mauricio Macri, who took power in December 2015 after more than a decade of leftist rule, has unwound many of the protectionist policies of his predecessors while improving relations with trade partners.
While some green shoots have emerged in Latin America’s third-largest economy, growth remains subdued and inflation high. (Reporting by Antonio de la Jara and Gram Slattery; Editing by Alan Crosby)