Uruguay and Chile agreed this past January to enter into an agreement to avoid double taxation and tax evasion. This reflects the interest of both governments to continue the path chosen to comply with technical recommendations and international standards issued by multilateral entities.
Although it still has to be ratified internally by each country in order for the Agreement to be in force, this step is extremely important for both governments. Alejandro Micco, sub secretary of Treasury said the following:
The treaty that nowadays we execute is addressed to the economic development of our towns, strengthening the business environment for Chilean and Uruguayan companies, promoting a greater flow of investments and commercial relations between Chile and Uruguay and in turn, improving their mechanisms to prevent international tax evasion regarding income and equity tax.
This Agreement complements the Reciprocal Promotion and Protection of Investments in force among both parties.
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