Vanessa Piedrahita Shares Insights on the US-Chile Tax Treaty with Bloomberg Law

February 15, 2024

Vanessa Piedrahita, Latin America practice leader and tax partner at Aprio, LLP, sheds light on the transformative implications of the US-Chile tax treaty in her recent article featured on Bloomberg Law, published on February 8, 2024.

Vanessa emphasizes, “The new US-Chile tax treaty will help eliminate double taxation and expand access to foreign tax credits and lithium-ion imports.” This treaty, effective since December 2023, aims to bolster cross-border business relations by reducing tax barriers between the US and Chile.

In the article, Vanessa  outlines three critical areas of impact:

Eliminating Double Taxation: The treaty addresses the persistent issue of double taxation, providing relief for businesses operating in both countries. Piedrahita states, “The US-Chile tax treaty will lower tax rates and eliminate the issue of double taxation for US businesses operating in Chile and vice versa.”

Foreign Tax Credits: By broadening access to foreign tax credits, particularly on the US side, the treaty diminishes the burden of double taxation. Piedrahita explains, “US-based businesses and workers interested in conducting business in Chile can expect significant reductions in their tax bills.”

Lithium-Ion Imports: With Chile being a major lithium producer, the treaty facilitates easier access to lithium imports, crucial for various industries. Piedrahita highlights, “Reduced tax barriers through the US-Chile tax treaty make imports from Chile much more accessible, offering opportunities for optimized production.”

Looking ahead, the treaty is poised to stimulate cross-border commerce and enhance economic ties between the two nations. Vanessa anticipates, “The treaty will serve as an exemplary model for future arrangements between the US and other nations in the region.”

The full Bloomberg Law article “US-Chile Tax Treaty Will Enhance, Streamline Trade for Companies” is available here. For more information about Vanessa, visit Aprio’s website.