[Congressional Record Volume 169, Number 98 (Tuesday, June 6, 2023)]
[Senate]
[Pages S1981-S1982]
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. 118-1)]

  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 Declarations
       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. 112 098), subject 
     to the reservations of section 2 and the declarations 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:
       ``l. 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 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

[[Page S1982]]

       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, Declarations
       The advice and consent of the Senate under section 1 is 
     subject to the following declarations:
       (1) The Convention is self-executing.
       (2) In light of substantial changes made to the 
     international provisions of the Internal Revenue Code in 
     2017, the Senate declares that future tax treaties need to 
     reflect such changes appropriately, including in Article 23. 
     Therefore, based on discussions with the U.S. Department of 
     the Treasury, additional work is required to evaluate the 
     policy of Article 23 in addressing relief of double taxation 
     and to agree on whether further changes to the terms of the 
     Article are necessary for future income tax treaties.

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