Australia to sign income tax treaty with Chile 29 January 2010 Australia and Chile have agreed on a new income tax treaty. The treaty will be based on the OECD Model Tax Convention and is the first tax agreement between the two countries. Making the announcement, Australia’s Assistant Treasurer, Senator Nick Sherry, said that Chile is a key economic and trading partner for Australia with a two-way trade now worth more than $1.28 billion. Australia and Chile have also signed Free Trade Agreement, which came into effect in March 2009. Senator Sherry said that the new tax agreement with Chile will extend Australia’s tax treaty network in South America and reduce taxation barriers to trade and investment between the two countries. "The proposed treaty establishes an internationally accepted framework for the taxation of cross-border transactions which will also reduce investor risk by providing a degree of legal and fiscal certainty," Senator Sherry said. More information |