[Senate Treaty Document 112-8]
[From the U.S. Government Publishing Office]


112th Congress
2d Session                      SENATE                     Treaty Doc.
112-8
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                       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 FEBRUARY 25, 2011, AND FEBRUARY 10 AND 21, 2012, AND A RELATED 
AGREEMENT EFFECTED BY EXCHANGE OF NOTES (THE ``RELATED AGREEMENT'') ON 
                            FEBRUARY 4, 2010




 May 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
                         LETTER OF TRANSMITTAL

                              ----------                              

                                     The White House, 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 February 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 
(together ``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 residents of a third country, and provides for 
a robust exchange of information between the tax authorities in 
the two countries to facilitate the administration of each 
country's tax laws.
    I recommend that the Senate give early and favorable 
consideration to the proposed Treaty and give its advice and 
consent to the ratification thereof.

                                                      Barack Obama.
                          LETTER OF SUBMITTAL

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                                       Department of State,
                                        Washington, March 22, 2012.
The President,
The White House.
    The President: I have the honor to submit to you, with a 
view to their transmission to the Senate for advice and consent 
to 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 at Washington February 4, 2010, together with a Protocol 
to the Convention 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 on February 4, 2010 (``related Agreement'').
    The proposed Convention, its Protocol, and the related 
Agreement (together ``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 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 Income 
Tax Convention and the current Organization for Economic 
Cooperation and Development standards for exchange of 
information 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 ratification.
            Respectfully submitted,
                                            Hillary Rodham Clinton.
    Enclosures: As stated.