[Congressional Record Volume 168, Number 62 (Thursday, April 7, 2022)]
[Senate]
[Pages S2090-S2091]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 EXECUTIVE REPORT OF COMMITTEE--TREATY

  The following executive report of committee was submitted:

       By Mr. MENENDEZ, from the Committee on Foreign Relations:
       Treaty Doc. 112-8: Tax Convention with Chile (Ex. Rept. 
     117-1)

       The text of the committee-recommended resolution of advice 
     and consent to ratification is as follows:

       Resolved (two-thirds of the Senators present concurring 
     therein),
       Section 1. Senate Advice and Consent Subject to 
     Reservations and a Declaration
       The Senate advises and consents to the ratification of 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, 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 on February 
     4, 2010 (the ``Convention'') (Treaty Doc. 112-8), subject to 
     the reservations of section 2 and the declaration of section 
     3.
       Section 2. Reservations
       The advice and consent of the Senate under Section 1 is 
     subject to the following reservations, which shall be 
     included in the instrument of ratification:
       (1) Nothing in the Convention shall be construed as 
     preventing the United States from imposing a tax under 
     section 59A, entitled the ``Tax on Base Erosion Payments of 
     Taxpayers with Substantial Gross Receipts,'' of the Internal 
     Revenue Code (as it may be amended from time to time) on a 
     company that is a resident of the United States or the 
     profits of a company that is a resident of Chile that are 
     attributable to a permanent establishment in the United 
     States.
       (2) Paragraph 1 of Article 23 (Relief from Double Taxation) 
     of the Convention shall be deleted and replaced by the 
     following:
       1. In accordance with the provisions and subject to the 
     limitations of the law of the United States (as it may be 
     amended from time to time without changing the general 
     principle thereof):
       a) the United States shall allow to a resident or citizen 
     of the United States as a credit against the United States 
     tax on income applicable to residents and citizens the income 
     tax paid or accrued to Chile by or on

[[Page S2091]]

     behalf of such citizen or resident. For the purposes of this 
     subparagraph, the taxes referred to in subparagraph b) of 
     paragraph 3 and paragraph 4 of Article 2 (Taxes Covered), 
     excluding taxes on capital, shall be considered income taxes; 
     and
       b) in the case of a United States company owning at least 
     10 percent of the aggregate vote or value of the shares of a 
     company that is a resident of Chile and from which the United 
     States company receives dividends, the United States shall 
     allow a deduction in the amount of such dividends in 
     computing the taxable income of the United States company.''
       Section 3. Declaration
       The advice and consent of the Senate under section 1 is 
     subject to the following declaration:
       The Convention is self-executing.

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