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Senators Urge Prioritization of U.S.-Chile Bilateral Tax Treaty

DEC. 7, 2021

Senators Urge Prioritization of U.S.-Chile Bilateral Tax Treaty

DATED DEC. 7, 2021
DOCUMENT ATTRIBUTES
  • Authors
    Rubio, Sen. Marco
    Hagerty, Sen. Bill
    Burr, Sen. Richard
    Grassley, Sen. Chuck
    Boozman, Sen. John
    Tillis, Sen. Thom
    Cassidy, Sen. Bill
    Lankford, Sen. James
    Wicker, Sen. Roger F.
    Cramer, Sen. Kevin
    Toomey, Sen. Patrick J.
    Scott, Sen. Rick
    Young, Sen. Todd
    Barrasso, Sen. John
    Daines, Sen. Steve
    Inhofe, Sen. James M.
    Lummis, Sen. Cynthia M.
    Ernst, Sen. Joni
  • Institutional Authors
    U.S. Senate
  • Subject Area/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2021-45626
  • Tax Analysts Electronic Citation
    2021 TNTI 234-26
    2021 TNTF 234-11
    2021 TNTG 234-27

December 7, 2021

The Honorable Robert Menendez
Chairman
U.S. Senate Committee on Foreign Relations
423 Dirksen Office Building
Washington, D.C. 20510

The Honorable James Risch
Ranking Member
U.S. Senate Committee on Foreign Relations
423 Dirksen Senate Office Building
Washington, D.C. 20510

Dear Chairman Menendez and Ranking Member Risch:

We urge you to prioritize the U.S.-Chile Bilateral Tax Treaty this year by scheduling a committee vote on this important agreement.

As you know, the U.S.-Chile Bilateral Tax Treaty was negotiated between the U.S. and Chile in 2010, but the Senate has yet to give its consent to ratification. The Treaty is vitally important to U.S. foreign direct investment in Chile. Without ratification of the Treaty, Chilean tax rates are due to increase on U.S. companies' Chilean operations and could reach a rate of 44.45 percent. By comparison, the Chilean operations of multinational companies headquartered in countries with treaties in force, such as China, Japan, Canada, Australia, and the United Kingdom, would continue to enjoy the current Chilean rate of 35 percent.

Further, the Treaty would benefit U.S. companies, and a growing number of Chilean companies who operate in a variety of sectors, and are eager to increase their investments in the U.S. These investments have the potential to create thousands of jobs. Failure to ratify the treaty could significantly reduce investments by U.S. companies in Chile and weaken the U.S. economy.

In order to strengthen the economy and protect U.S. company investments, we ask for your support to ensure the prompt ratification of the U.S.-Chile Tax Treaty. Thank you for your attention to this urgent matter and we look forward to working with you to ensure timely ratification.

Sincerely,

Marco Rubio
U.S. Senator

Bill Hagerty
U.S. Senator

Richard Burr
U.S. Senator

Charles E. Grassley
U.S. Senator

John Boozman
U.S. Senator

Thom Tillis
U.S. Senator

Bill Cassidy, M.D.
U.S. Senator

James Lankford
U.S. Senator

Roger F. Wicker
U.S. Senator

Kevin Cramer
U.S. Senator

Pat Toomey
U.S. Senator

Rick Scott
U.S. Senator

Todd Young
U.S. Senator

John Barrasso, M.D.
U.S. Senator

Steve Daines
U.S. Senator

James M. Inhofe
U.S. Senator

Cynthia M. Lummis
U.S. Senator

Joni K. Ernst
U.S. Senator

DOCUMENT ATTRIBUTES
  • Authors
    Rubio, Sen. Marco
    Hagerty, Sen. Bill
    Burr, Sen. Richard
    Grassley, Sen. Chuck
    Boozman, Sen. John
    Tillis, Sen. Thom
    Cassidy, Sen. Bill
    Lankford, Sen. James
    Wicker, Sen. Roger F.
    Cramer, Sen. Kevin
    Toomey, Sen. Patrick J.
    Scott, Sen. Rick
    Young, Sen. Todd
    Barrasso, Sen. John
    Daines, Sen. Steve
    Inhofe, Sen. James M.
    Lummis, Sen. Cynthia M.
    Ernst, Sen. Joni
  • Institutional Authors
    U.S. Senate
  • Subject Area/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2021-45626
  • Tax Analysts Electronic Citation
    2021 TNTI 234-26
    2021 TNTF 234-11
    2021 TNTG 234-27
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