DTC Agreement Between Chile and Peru

Sandra Pamela Tuesta Quispe
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Certified Licensed Translator
Spanish English French Portuguese
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CERTIFIED TRANSLATION No. 0104.2015
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LEGISLATIVE RESOLUTION No. 27905

THE CONGRESS OF REPUBLIC:
Has given the following Legislative Resolution:
LEGISLATIVE RESOLUTION APPROVING THE AGREEMENT BETWEEN THE
GOVERNMENT OF THE REPUBLIC OF PERU 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 SHAREHOLDERS 'EQUITY
Sole section.- Object Legislative Resolution.
the "Agreement between the Government of the Republic of Peru
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 in Santiago
Republic of Chile, on June 8, 2001, in accordance with
sections 56 and 102 , paragraph 3, of the Constitution of
Peru is approved.
Contact the President of the Republic for its promulgation.
Lima, on the eleventh day of December two thousand and two.
CARLOS FERRERO
President of the Congress of the Republic
JESS ALVARADO HIDALGO
First Vice-President of the Congress of the Republic
TO THE CONSTITUTIONAL PRESIDENT OF THE REPUBLIC
Lima, on December 30th 2002.
Be it hereby executed, communicated, registered, published
and recorded.
ALEJANDRO TOLEDO
Constitutional President of the Republic
LUIS SOLARI DE LA FUENTE
President of the Council of Ministers
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Pasaje Bahia San Juan 120, San Miguel - Telephone: (511) 6407127
traduccioneszenoni@gmail.com - www.traduccioneszenoni.com

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ALLAN WAGNER TIZN

Minister of Foreign Affairs
JAVIER SILVA RUETE
Minister of economy and finance
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Agreement signed with the Republic of Chile for the avoidance

of double taxation and prevention of fiscal evasion with
respect to taxes on income and capital
ANNEX- LEGISLATIVE RESOLUTION N 27905
(Legislative Resolution of the reference was posted on
January 5, 2003, on page 236 561)
AGREEMENT BETWEEN THE REPUBLIC OF PERU AND THE REPUBLIC OF

CHILE FOR THE AVOIDANCE OF DOUBLE TAXATION FOR THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND
SHAREHOLDERS 'EQUITY
The Government of the Republic of Peru and the Government of
the Republic of Chile, desiring to conclude an Agreement for
the avoidance of double taxation and prevention of fiscal
evasion with respect to taxes on income and on capital.
Have agreed as follows:
CHAPTER I
SCOPE OF APPLICATION OF THE AGREEMENT
Section 1
COVERED PERSONS
This Agreement applies to residents of one or both
Contracting States.
Section 2
TAXES INCLUDED
1. This Agreement shall apply to taxes on income and on
equity required by each Contracting State, either that
the levy system.
2. Be regarded as taxes on income and on capital all taxes
imposed on total income or assets or any part thereof
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models, including taxes on gains from the alienation of

movable or immovable property, taxes on the amounts of
wages or salaries paid by enterprises, as well as taxes
on capital appreciation.
The existing taxes to which this agreement applies are,
in particular:
(a) In Peru, the taxes established in the "Law on
Income Tax"; and the special solidarity tax as it
affects
the
income
from
the
independent
and
individual exercise of a profession;
(b) In Chile, the taxes imposed on the "Law on Income
Tax".
3. The Agreement shall also apply to taxes identical or
substantially similar and estate taxes that are imposed
after the date of signature, and the addition to or in
place
today.
The
competent
authorities
of
the
Contracting
States
shall
notify
each
other
of
significant changes which have been made in their
respective taxation laws.
CHAPTER II
DEFINITIONS
Section 3
GENERAL DEFINITIONS
1. For the purposes of this Agreement, except
context is infers a different interpretation:
that
its
(a) The term "Peru" means the "Republic of Peru"

(b) The term "Chile" means the Republic of Chile"
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(c) The terms "a Contracting State" and "the other

Contracting State" mean, as required by the
context, the Peru or Chile;
(d) The term "person" includes natural persons,
companies and any other group of persons;
(e) The term "company" means anybody corporate or any
entity which is considered legal entity for tax
purposes;
(f) The expressions "enterprise of a Contracting
State and "enterprise of the other Contracting
State" mean, respectively, an exploited enterprise
or a resident of the other Contracting State;
(g) The
term
"international
traffic"
means
all
transport by a ship, aircraft or land vehicle
operated by an enterprise of a Contracting State,
except
when
said
transportation
takes
place
exclusively between two points situated in the
other Contracting State;
(h) The expression "competent authority" means:
(I) In the Peru, Minister of economy and finance
or his authorized representative;
(II) In Chile, the Minister of finance or its
authorized representative;
(i) The term "national" means:
(I) Any
natural
person
who
possesses
the
nationality of a Contracting State; or
(II) Any legal person or Association incorporated
or
established
in
accordance
with
the
legislation of a Contracting State.
2. For the implementation of the Agreement by a Contracting
State at any given moment, any term not defined therein
shall, unless the context, an otherwise requires, the
meaning in that time under the law of that State
concerning the taxes covered by the Agreement, the
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meaning attributed by prevailing tax on term under other

branches of law of that State law.
Section 4
RESIDENT
1. For the purposes of this Agreement, the term "resident
of a Contracting State" means any person who, under the
law of that State, is liable to tax therein by reason of
its domicile, residence, place of management, place of
incorporation or any other criterion of a similar
nature, and also includes the state itself and any
political subdivision or local authority. However, this
term does not include any person who is liable to tax in
that State in respect only of income from sources in
that State or capital situated therein.
2. When under the provisions of paragraph 1 a natural
person is a resident of both Contracting States, his
situation will be resolved in the following manner:
(a) such person shall be deemed resident only of the
State where it is a permanent housing at their disposal;
if permanent home available in both States, it will be
considered resident only of the State that hold personal
and
economic
relations
closer
(Centre
of
vital
interests);
(b) If the State in which that person has the
its vital interests, or if it did not have a
home available in any of the States, it shall
resident only of the State where you live;
determined
Centre of
permanent
be deemed
cannot be
(c) If you usually lived in both States, or did not in

any of them, it will be considered resident only of the
State of which it is a national;
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(d) If it is a national of both States, or non-none of

them, the competent authorities of the Contracting
States will resolve the case by mutual agreement
procedure.
3. When under the provisions of paragraph 1 a person other
than a natural person is a resident of both Contracting
States shall be considered a resident of the State of
nationality. If it is a national of both Contracting
States, or not be possible for any of them or cannot be
determined, the Contracting States shall endeavor,
through a mutual agreement procedure for resolving the
case. In the absence of agreement between the competent
authorities of the Contracting States, the person is not
entitled to any relief or exemption from tax provided by
the Agreement.
Section 5
PERMANENT ESTABLISHMENT
1. For the purposes of this Agreement, the term "permanent
establishment" means a fixed place of business through
which an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
(a)
(b)
(c)
(d)
(e)
(f)
Address headquarters;
Branches
Offices
Factories
Workshops
Mines, oil or gas wells, quarries or any other place
relating to the exploration or exploitation of
natural resources.
3. The term "permanent establishment" also includes:
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(a) A work or construction, installation or Assembly

project and supervision activities related to them,
but only when such work, construction project or
activity has a duration exceeding six months; and
(b) The
provision
of
services
by
an
enterprise,
including consulting services, through employees or
other persons entrusted by the enterprise associated
with another enterprise within the meaning of
section 9, will be added to the period during which
activities are carried out by the company that is
associated, if the activities of the two companies
are
the
same
substantially
similar
or
are
interconnected.
4. Notwithstanding the provisions above in this section, it
is
considered
that
the
expression
"permanent
establishment" does not include;
(a) The use of facilities for the sole purpose of
storage, display or deliver goods or merchandise
belonging to the enterprise;
(b) The maintenance of a stock of goods or merchandise
belonging to the enterprise for the sole purpose of
storage, display them or hand them over.
(c) The maintenance of a stock of goods or merchandise
belonging to the enterprise for the sole purpose of
which is transformed by another company.
(d) The maintenance of a fixed place of business for the
sole purpose of purchasing goods or merchandise, or
of collecting information, for the enterprise;
(e) The maintenance of a fixed place of business for the
sole purpose of advertising, provide information or
conduct scientific research or similar activities
which have a preparatory or auxiliary character, for
the enterprise.
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5. However the provisions of paragraphs 1 and 2, when a

person other than an independent agent to which
paragraph 7, applicable to act on behalf of a company
and holds and exercises powers enabling it to conclude
contracts on behalf of the company, usually in a
Contracting State shall be considered that this company
has a permanent establishment in that State in respect
of any activities which that person do to the company
unless the activities of such person are limited to
those mentioned in paragraph 4 and that, being made
through a fixed place of business, that fixed place of
business is not regarded as a permanent establishment
under the provisions of that paragraph.
6. However these provisions of the present section, is
considered a resident of a Contracting State insurance
company have except with regard to reinsurance, a
permanent establishment in the other Contracting State
if it collects premiums in the territory of that other
State or if you insure risks situated in it by means of
a representative other than an independent agent to
which paragraph 7 applies.
7. It is not considered that a company has a permanent
establishment in a Contracting State merely because a
broker, general commission agent or other independent
agent, provided that such persons are acting in the
ordinary course of their business and that in their
commercial relations or financial relations with such
enterprises are not made or imposed conditions are made
or imposed that differ from those generally agreed to by
independent agents.
8. The fact that a company resident in a Contracting State
control or is controlled by a resident of the other
Contracting State, or which carries on business in that
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other State (whether through a permanent establishment

or otherwise), shall not of itself constitute either
company a permanent establishment of the other.
CHAPTER III
TAXATION OF INCOME
Section 6
INCOME FROM REAL ESTATE
1. Incomes to a resident of a Contracting State from
immovable property (including income from agricultural
and forestry holdings) situated in the other Contracting
State only may be taxed in that other State.
2. For the purposes of this Agreement, the expression
"immovable property" shall have the meaning which
attributed you the right of the State of the Contracting
Party in which the property is located. Such term
includes in any case accessories immovable property and
the right to receive variable or fixed payments for the
exploitation or the granting of the exploitation of
mineral deposits, sources and other natural resources.
Ships and aircraft shall not be considered real estate.
3. The provisions of paragraph 1 apply to income derived
from the direct use, lease or share-cropping, as well as
any other form of exploitation of property and income
derived from its disposal.
4. The provisions of paragraphs 1 and 3 apply equally to
income derived give them real estate company and real
estate used for independent personal services.
Section 7
BUSINESS PROFITS
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1. The profits of an enterprise of a Contracting State only

may be taxed in that State unless the company carries
out its activity in the other Contracting State through
a permanent establishment situated therein. If the
company carries out or has carried out its activity in
such a way, the profits of the enterprise may be taxed
in the other State, but only to the extent that they can
be attributed to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an
enterprise of a Contracting State activity in the other
Contracting State through a permanent establishment
situated
therein,
in
each
Contracting
State
be
attributed to that establishment the benefits that this
would have been able to get to be a distinct and
separate enterprise that takes place the same or similar
activities , in the same or similar conditions and were
in complete independence with the company which is a
permanent establishment and with all other persons.
3. The deduction of the necessary expenses incurred for the
purposes of the permanent establishment, including
address expenses and General Administration for the same
purposes, if they are performed in the State in which
the permanent as elsewhere establishment will be allowed
for the determination of the profits of the permanent
establishment.
4. As long as it is usual in a Contracting State to
determine the profits attributable to a permanent
establishment on the basis of a division of the total
profits of the enterprise between its various parts, set
out in paragraph 2, shall not prevent that that
Contracting State determined in this way the taxable
benefits; However, the method of distribution adopted
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shall be such that the result is in accordance with the

principles contained in this section.
5. It does not confer any benefit to a permanent
establishment by the mere fact that this purchase goods
or merchandise for the enterprise.
6. For purposes of the preceding paragraphs, the benefits
attributable to the permanent establishment shall be
calculated each year by the same method, unless there
are valid reasons to proceed in any other way.
7. When benefits understand income regulated separately in
other sections of this Agreement, those provisions will
not be affected by the present section.
Section 8
LAND, MARITIME AND AIR TRANSPORT
1. The profits of an enterprise of a Contracting State from
the operation of ships, aircraft or land vehicles in
international traffic only may be taxed in that State.
2. For the purposes of this section:
(a) The term "profits" includes, especially:
(I) Gross income resulting directly from the operation
of
ships,
aircraft
or
road
vehicles
in
international traffic and,
(II) Interest on amounts generated directly from the
operation of ships, aircraft or road vehicles in
international
traffic,
provided
that
these
interests are inherent to the exploitation.
(b) The expression "exploitation of ships, aircraft or
land transport vehicles" by an enterprise, includes:
(I)
The charter or rental of land vehicles, aircraft or

ships, bareboat;
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(II) The rental of containers and related equipment

If that charter or rental is incidental to the operation
by the enterprise of ships, aircraft or lands transport
vehicles in international traffic.
3. The provisions of paragraph 1 are also applicable to
profits from the participation in a consortium, a joint
venture or in an international operating agency.
Section 9
ASSOCIATED COMPANIES
1. When
(a) An enterprise of a Contracting State participates
directly or indirectly in the management, control or
capital of an enterprise of the other Contracting
State, or
(b) A
few
same
persons
participate
directly
or
indirectly in the management, control or capital of
an
enterprise
of
a
Contracting
State
and
an
enterprise of the other Contracting State.
And in one case the two companies are, in their
relations, commercial or financial, United accepted or
imposed conditions that differ from that would be agreed
by independent companies, the income that would have
been obtained by one of the companies there is no such
conditions, and that in fact have not been conducted
because of the same, may be included in the income of
that enterprise and taxed accordingly.
2. When a Contracting State includes in the income of an
enterprise of that State and subject, therefore,
taxation, income on which an enterprise of the other
Contracting State has been subjected to tax in that
other State, and the income so included is income that
would have been done by the State company mentioned in
the first place if the agreed terms between the two
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companies
had
been
that
it
had
agreed
between
independent undertakings that other State practice, if
it agrees, the setting which results from the amount of
tax that has levied on this income. To determine the
adjustment will take into account the other provisions
of this Agreement and the competent authorities of the
Contracting States shall consult if necessary.
3. The provisions of paragraph 2 shall not apply in the
case of fraud, fault or negligence.
Section 10
DIVIDENDS
1. Dividends paid by a resident company of a Contracting
State to a resident of the other Contracting State may
be taxed in that other State.
2. Such dividends may also be taxed in the Contracting
State in which resides the society that pays dividends,
and according to the laws of this State. However, if the
beneficial owner of the dividends is a resident of the
other Contracting State, the tax so charged shall not
exceed of the:
(a) 10 per cent of the gross amount of the dividends if
the beneficial owner is a company which controls
directly or indirectly not less than 25 percent of
shares with voting rights of the society that pays
those dividends;
(b) 15 per cent of the gross amount of the dividends in
all other cases.
The provisions of this paragraph do not affect the
imposition of society with regard to the benefits
charged to pay dividends.
3. The term "dividends" in the sense of this section means
income from shares or other rights, except for the
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credit, allowing participating in profits, as well as

income from shares by the laws of the State of which the
company making the distribution is resident.
4. The provisions of paragraphs 1 and 2 of this section do
not apply if the beneficial owner of the dividends, a
resident of a Contracting State, carries out a business
through a permanent establishment situated there in the
other Contracting State, which the society that pays
dividends is resident, or services in that other State a
few personal independent through a fixed base located
there , and participation generally dividends is
effectively linked to such permanent establishment or
fixed base. In this case, apply the provisions of
section 7 or section 14, as appropriate.
5. When a resident a Contracting State company obtained
profits or income from the other Contracting State, that
other State may not require any tax on the dividends
paid by the company, except insofar as such dividends
are paid to a resident of that other State or
participation generated dividends is actually linked to
a permanent establishment or a fixed base situated in
that other State or to subject the undistributed profits
of the company to a tax on them, even if the dividends
paid or the undistributed profits consist, totally or
partially, benefits or income from that other State.
Section 11
INTERESTS
1. The interests from a Contracting State and paid to a
resident of the other Contracting State may be taxed in
that other State.
2. However, such interest may also be taxed in the
Contracting State in which they arise and according to
the legislation of that State, but if the beneficial
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owner is a resident of the other Contracting State, the

tax so charged shall not exceed 15 per cent of the gross
amount of the interest.
3. The term "interests", in the sense of this section means
income from credits of any nature, with or without a
mortgage, and in particular, income from government
securities and income from bonds and obligations, as
well as any other income that the laws of the State
wherein appropriate interests, assimilate the quantities
given in loan income. However, the term "interest" does
not include income covered by section 10.
4. The provisions of paragraphs 1 and 2 do not apply if the
beneficial interests, resident of a Contracting State,
performed in the other Contracting State, they came from
interests, a business through a permanent establishment
situated
there,
or
provides
personal
services
independent through a fixed base located there, and the
credit which the interest is linked effectively to such
permanent establishment or fixed base. In this case,
apply the provisions of section 7 or section 14, as
appropriate.
5. The interests are considered from a Contracting State
when the debtor is a resident of that State. However,
when the debtor's interests whether or not resident of
the Contracting State, have a Contracting State a
permanent establishment or a fixed base in connection
with which the debt that the interests and these are
paid has contracted are supported by the permanent
establishment or fixed base.
6. When by reason of the special relationship between the
payer and the beneficial owner, or that one and the
other maintained with third parties, the amount of the
interest taking into account the credit which are paid
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exceed which had agreed the debtor and the creditor in

the absence of such relationship, the provisions of this
section do not apply more than this last amount. In such
a case, the amount in excess will be taxed in accordance
with the legislation of each Contracting State, taking
into account the other provisions of this Agreement.
7. The provisions of this section shall not apply if the
purpose or one of the main purposes of any person
associated with the creation or attribution.
Section 12
ROYALTIES
1. The royalties from a Contracting State and paid to a
resident of the other Contracting State may be taxed in
that other State.
2. However, these royalties may also be taxed in the
Contracting State in which they arise and according to
the legislation of that State, but if the beneficial
owner is a resident of the other Contracting State, the
tax so charged shall not exceed 15 per cent of the gross
amount of the royalties.
3. The term "royalties" in this section means the amount of
any kind paid by the use or the right to use, rights of
copyright of literary, artistic or scientific work
including cinematograph films or films, tapes and other
media of image and sound, patents, trademarks, designs
or models, plans, formulas or secret procedures or other
intangible property, or for the use or right to use,
industrial, commercial or scientific equipment, or for
information
concerning
industrial,
commercial
or
scientific experience.
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4. The provisions of paragraphs 1 and 2 of this section are

not applicable if the beneficiary cash royalties,
resident of a Contracting State, performed in the
Contracting State in which the royalties came from a
business through a permanent establishment situated
there, or provides personal services independent through
a fixed base located there, and the property or the
right for which the royalties are paid are linked
effectively to such permanent establishment or fixed
base. In such a case the provisions of section 7 or
section 14, are applicable as appropriate.
5. The royalties are considered from a Contracting State
when the debtor is a resident of that State. However,
when who pays royalties, whether or not resident of a
Contracting State, has in a Contracting State a
permanent establishment or a base page that supports the
load of the same, these are considered to be from the
State where the permanent establishment is situated or
fixed base.
6. When by reason of the special relationship between the
payer and the beneficial owner, exceeding the one and
the other maintained with third parties, the amount of
the royalties, having regard to the use, right or
information for which are paid, which would have agreed
the payer and the beneficial owner in the absence of
such relationship, the provisions of this section do not
apply more than this last amount. In such a case, the
amount in excess will be taxed in accordance with the
legislation of each Contracting State, taking into
account the other provisions of this Agreement.
7. The provisions of this section shall not apply if the
main purpose or one of the main purposes of any person
connected with the creation or assignment of rights
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regarding royalties are paid to which outside the take

advantages of this section by means of that creation or
attribution.
Section 13
CAPITAL GAINS
1. Profits to a resident of a Contracting State from the
alienation of immovable property situated in the other
Contracting State only may be taxed in the latter State.
2. Gains from the alienation of movable property forming
part of the assets of a permanent establishment which an
enterprise of a Contracting State has in the other
Contracting State or of movable property pertaining to a
fixed base which a resident of a Contracting State has
in the other Contracting State for the performance of
independent personal services including gains from the
alienation of this permanent establishment (alone or
with the whole of the company of which it forms part) or
this fixed base, may be taxed in that other State.
3. Earnings derived from the alienation of ships or
aircraft operated in international traffic or movable
property pertaining to the operation of such ships or
aircraft, only may be taxed in the Contracting State of
residence the alienating.
4. Earnings you get a resident of a Contracting State from
the
alienation
of
securities
or
other
rights
representing the capital of a company or any other
financial instrument located in the other Contracting
State may be taxed in that other Contracting State.
5. Earnings derived from the alienation of any property
other than those mentioned in the previous paragraphs
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only may be taxed in the Contracting State in which he

resides the alienating.
Section 14
INDEPENDENT PERSONAL SERVICES
1. Income derived by a natural person who is a resident of
a Contracting State, in respect of professional services
or other independent activities carried out in the other
Contracting State may be taxed in the latter State, but
the tax payable shall not exceed 10 per cent of the
gross amount received by such services or activities.
However, such income may be subjected to tax in the
other Contracting State:
(a) When such person has in the other Contracting State a
fixed base which is available regularly for the
performance of its activities, in such a case, only
may be taxed in that other State the portion of
revenues that are attributable to that fixed base;
(b) When such a person stay in the other Contracting
State for a period or periods that total or exceed
183 days within any twelve-month period; in such a
case, only may be taxed in that other State the part
of income derived from activities performed by it in
that other State.
2. The term "professional services" includes especially
independent scientific, literary, artistic, educational
or pedagogical nature activities, as well as the
independent
activities
of
physicians,
lawyers,
engineers,
architects,
dentists,
auditors
and
accountants.
Section 15
DEPENDENT PERSONAL SERVICES
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1. Without prejudice to the provisions of sections 16, 18

and 19 salaries, wages and other remuneration obtained
by a resident of a Contracting State by reason of a
single employment may be taxed in that State, unless the
employment is performed in the other Contracting State.
If the employment is performed in this way, the
remuneration derived from it may be taxed in that other
State.
2. However the provisions of paragraph 1, remuneration
obtained by a resident of a Contracting State because of
an employment performed in the other Contracting State
are taxed exclusively in the first State if:
(a) The receiver remains in the other State for a
period or periods whose duration does not exceed 183
days in any twelve-month period that begins or ends
in the tax year considered, altogether and
(b) The remuneration is paid by, or on behalf of a
person who is not a resident of the other State, and
(c) Remuneration
is
not
charged
to
a
permanent
establishment or a fixed base that a person has in
the other State.
3. However the preceding provisions of this section,
remuneration obtained by a resident of a Contracting
State by reason of an employment performed aboard a ship
or aircraft operated in international traffic only may
be taxed in that State.
Section 16
PARTICIPATIONS OF DIRECTORS
Directors schedules and other similar payments to a resident
of a Contracting State as member of a directory or a similar
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organ of a company resident in the other Contracting State

may be taxed in that other State.
Section 17
ARTISTS AND JOURNALISTS
1.- Notwithstanding the provisions of sections 14 and 15, the
incomes a resident of a Contracting State to obtain exercise
their personal activities in the other Contracting State the
artist from the show, such as theatre, film, radio or
television, or musician, or as an athlete, another State may
be taxed in that. The income referred to in this paragraph
include incomes who resident said obtains any personal
activity exercised in the other Contracting State related to
its popularity as an artist of the show or athlete.
2.- However the provisions of sections 7, 14 and 15, when
income derived from personal activities of the show artists
or athletes, in that capacity, attributed not to the artist
of the show or athlete but to another person, such income may
be taxed in the Contracting State in which the activities of
the artist of the show or the athlete.
Section 18
PENSIONS
1. Pensions from a Contracting State and paid to a resident
of the other Contracting State may be taxed in the State
referred to in the first place, but the tax so charged
shall not exceed 5 per cent of the gross amount of the
pension.
2. Food and other maintenance payments made to a resident
of a Contracting State only shall be subject to taxation
in that State if they are deductible to the payer. In
the event that they are not deductible shall be subject
to tax only in the State of residence of the payer.
Section 19
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PUBLIC FUNCTIONS
1. (a) Salaries, wages and other remuneration, excluding
pensions, paid by a Contracting State or by one of its
political subdivisions or local authorities to a natural
person on the basis of services rendered to that State
or to that subdivision or authority only may be taxed in
that State.
2. However, such salaries, wages and other remuneration can
only be taxed in the other Contracting State if the
services are rendered in that State and the individual
is a resident of that State who:
(I) has the nationality of that State; or
(II) It has not acquired the status of resident of this
State only to provide the services.
3. Provisions of the sections 15, 16 and 17 apply to
salaries, wages and other remuneration paid by reason of
services provided in the context of a business activity
carried out by a Contracting State or by one of its
political subdivisions or local authorities.
Section 20
STUDENTS
Amounts you receive to cover their expenses of maintenance,
study or training practice a student, an apprentice or a
person in practice who is or was immediately before arriving
in a Contracting State, a resident of the other Contracting
State and who is in the State mentioned in first place with
the sole purpose of continuing their studies or practical
training they may not be taxed in that State provided that
they come from sources outside that State.
Section 21
OTHER INCOMES
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The income of a resident of a Contracting State not referred

to in the preceding sections of the present Agreement and
that they come from the other Contracting State may also be
taxed in that other Contracting State.
CHAPTER IV
EQUITY IMPOSITION
Section 22
EQUITY
1. Equity made up of immovable property, possessing a
resident of a Contracting State, and which is situated
in the other Contracting State, may be taxed that that
other State.
2. The equity constituted by movable property forming part
of the assets of a permanent establishment which an
enterprise of a Contracting State has in the other
Contracting State, or by movable property pertaining to
a base set that a resident of a Contracting State has in
the other Contracting State for the performance of
independent personal services, may be taxed in that
other State.
3. The equity constituted by ships or aircraft
exploited in international traffic and by
property pertaining to the operation of such
aircraft, only can be taxed in the Contracting
which the company that exploits those ships or
is a resident.
that are
movable
ships or
State of
aircraft
4. All other elements of the equity of a resident of a

Contracting State only may be taxed in that State.
CHAPTER V
METHODS TO ELIMINATE THE DOUBLE TAXATION
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Section 23
ELIMINATION OF DOUBLE TAXATION
1. In the case of the Republic of Chile, double taxation
shall be avoided as follows:
(a) People living in Chile, obtaining income which, in
accordance with the provisions of this Agreement, may be
taxed in the Peru may be credited against taxes in Peru,
in accordance with the applicable provisions of Chilean
legislation. This paragraph shall apply to all income
dealt with in this Agreement.
(b) Where in accordance with any provision of the
present Agreement, income derived by a resident of Chile
or the heritage that it has are exempt from taxation in
Chile, Chile may, however, take into account exempt
income or heritage for the purpose of calculating the
amount of tax on other income or the assets of such
resident.
2. In the case of Peru, double taxation shall be avoided as
follows:
(a) Peru will allow its residents credit against the
income tax payable in Peru, as a credit, the Chilean tax
paid
by
the
income
taxed
according
to
Chilean
legislation and the provisions of this Agreement.
Considered credit may not exceed, in any case, the part
of the tax income of the Peru, attributable to the
income which may be taxed in Chile.
(b) Where in accordance with any provision of the
present Agreement, income derived by a resident of the
Peru or equity that it has are exempt from taxation in
the Peru, Peru may, however, take into account exempt
income or equity for the purpose of calculating the
amount of tax on other income or the assets of such
resident.
CHAPTER VI
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GENERAL ARRANGEMENTS
Section 24
NON- DISCRIMINATION
1. Nationals of a Contracting State shall not be subjected
in the other Contracting State to any taxation or
obligation relating to the same that do not require or
are more onerous than those which are or may be
subjected the nationals of that other State in the same
conditions, in particular with respect to residence.
2. The permanent establishment that an enterprise of a
Contracting State has in the other Contracting State
should not be subjected in that State to an imposition
of less favorable to enterprises of that other State
carrying out the same activities.
3. Nothing in this section shall be interpreted in the
sense of obliging a Contracting State to grant to
residents of the other Contracting State personal
deductions, rebates and tax reductions which it grants
to its own residents in regard to their marital status
or family responsibilities.
4. The companies which are residents of a Contracting State
and whose capital is, wholly or partly, held or
controlled, directly or indirectly, by one or more
residents of the other Contracting State shall not be
subject in the first State to any taxation or obligation
relating thereto which do not require or more burdensome
than those which are or may be subjected the resident
similar companies of the first State whose capital is
total or partially, held or controlled, directly or
indirectly, by one or more residents of a third State.
5. In this section, the term "taxation" refers to taxes
which are the subject of this Agreement.
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Section 25
MUTUAL AGREEMENT PROCEDURE
1. When a person considers that the actions of one or both
of the Contracting States result or will result for it
in taxation not in accordance with the provisions of
this Agreement, irrespective of the remedies provided by
the domestic law of those States, present his case to
the competent authority of the Contracting State of
which is a resident or, if paragraph 1 of Section 24, to
that of the Contracting State of nationality applicable.
2. The competent authority, if the claim appears founded
and if not you can it find a satisfactory solution, will
make possible to solve the issue through a procedure of
mutual agreement with the competent authority of the
other Contracting State, in order to avoid taxation
which does not conform to this agreement.
3. The competent authorities of the Contracting States
shall endeavor to resolve the difficulties or doubts
arising in the interpretation or application of the
Agreement by a mutual agreement procedure.
4. The competent authorities of the Contracting States may
communicate directly in order to reach an agreement in
the sense of the preceding paragraphs.
5. If arises a difficulty or doubt as to the interpretation
or application of this Agreement which cannot be
resolved by the competent authorities of the Contracting
States, the case may, if the competent authorities
agree, be submitted to arbitration. The procedure shall
be agreed between the Contracting States by notes which
will be exchange through diplomatic channels.
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Section 26
INFORMATION EXCHANGE
1. The competent authorities of the Contracting States
shall exchange the information necessary to apply the
provisions of this Agreement, or the domestic law of the
Contracting States concerning taxes covered by the
Agreement insofar as the taxation provided for therein
is not contrary to the Agreement, which may be used to
determine the tax to the added value (General sales
tax). The exchange of information will not be bound by
Section 1. The information received by a Contracting
State shall be kept secret in the same way that the
information obtained on the basis of the internal law of
that State, and only communicate to persons or
authorities (including courts and administrative bodies)
responsible for the management or collection of the
taxes covered by the Agreement, declarative or executive
procedures relating to such taxes, or the resolution of
resources related to them. Such persons or authorities
to only use this information for these purposes. They
may disclose the information in public hearings of the
courts or court rulings.
2. In any case the provisions of paragraph 1 be able to
interpret in the sense of obliging a Contracting State
to:
(a) To adopt contrary administrative measurements to
its legislation or administrative practice, or of the
other Contracting State.
(b) To provide information that cannot be obtained on
the basis of its legislation or in the exercise of
their normal administrative practice, or of the other
Contracting State;
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(c) To provide information that reveal commercial,

industrial
or
professional
secrets,
commercial
procedures or information whose communication is
contrary to public order.
3. When the information is requested by a Contracting State
in accordance with this section, the other Contracting
State will obtain the information referred to in the
request in the same way as if it were its own taxation,
regardless of the fact that this other State, at that
time, does not require of such information.
Section 27
MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR OFFICES
The provisions of this Agreement shall not affect the fiscal
privileges to enjoy the members of diplomatic missions or
consular representations in accordance with the General
principles of international law or under the provisions of
special agreements.
Section 28
MISCELLANEOUS PROVISIONS
1. Investment funds and other funds of any kind, organized
to operate in Chile as such according to the laws
Chilean will be, for the purposes of this Agreement,
considered resident in Chile and subject to tax
according to tax Chilean law with respect to dividends,
interest, capital gains and other income obtained goods
or investments in Chile. The provisions of this
paragraph shall apply however other provisions of this
agreement.
2. For the purposes of paragraph 3 of section XXII
(consultation) of the General Agreement on trade in
services (GATS), the Contracting States agree that,
notwithstanding that paragraph, any dispute between them
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Page 30 of 36
with respect to whether a measure falls within the scope

of this Agreement, may be performed before the Council
for trade in services, as stipulated in the same
paragraph, but only with the consent of both Contracting
States. Any questions about the interpretation of this
paragraph shall be resolved under paragraph 3 of section
25 or, in case of not reaching agreement in accordance
with this procedure, pursuant to any other procedure
agreed by both Contracting States.
3. In the case of Chile, nothing in this Agreement shall
affect the application of the existing provisions of the
D.L.N 600 Chilean law (Statute of foreign investment),
as they are in force at the date of signature of this
Agreement and even if they are eventually amended
without changing the general principle.
4. In the case of Peru, this Agreement shall not affect the
application of provisions of the Decree legislative N
s. 662, 757, 109, law N s. 26221, 27342, 27343 and all
amendments and regulatory provisions of Peruvian law in
full force at the date of conclusion of this agreement,
and even if they were eventually modified without
altering its general principle.
Those who have subscribed or sign agreements that
provide tax stability, under the aegis of the cited
standards, may not benefit rates set forth in the
Agreement where they are stabilized in an Agreement of
tax stability.
5. Contributions in a year for the services rendered in
that year paid by, or gutter, a resident natural person
of a Contracting State or who is temporarily present in
that State, to a pension plan that is recognized for tax
purposes in the other Contracting State shall, during a
period which does not exceed in total 60 months be
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treated in the State referred to in the first place, in

the same way as a contribution paid to a pension system
recognized for tax purposes in that State, if:
(a) The natural person was contributing as regular
pension plan for a period that had ended immediately
before that happened to be a resident of or
temporarily present in the State referred to in the
first place, be and
(b) The competent authorities of the State referred to
in the first place agree that the pension plan
corresponds generally to a pension plan recognized
for tax purposes by that State.
For the purposes of this paragraph, "pension plan"
includes the pension plan established under the
social security system of each Contracting State.
6. Considering that the main objective of this Agreement is
to avoid international double taxation, the Contracting
States agree that, in the event that the provisions of
the Agreement are used in such a way as to grant
benefits not contemplated nor intended by it, the
competent authorities of the Contracting States shall,
in
accordance
with
section
25
mutual
agreement
procedure, recommended specific modifications Agreement
the Contracting States agree in addition that any of
these recommendations will be considered and discussed
expeditiously with a view to modify the Agreement in so
far as it is necessary.
7. Nothing in this Agreement shall affect the taxation in
Chile of a resident in Peru in relation to the profits
attributable to a permanent establishment situated in
Chile, both under the first category as the additional
tax, provided that the first category tax is deductible
against the additional tax.
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CHAPTER VII
FINAL ARRENGEMENTS
Section 29
COMING INTO FORCE
1. Each of the Contracting States shall notify each other,
through
diplomatic
channels,
compliance
with
the
procedures required by its law for the entry into force
of this Agreement. This Agreement shall enter into force
on the date of receipt of the last notification.
2. The provisions of the Agreement shall apply:
(a)
In Chile,
With respect to taxes on income obtained and the amounts

that are paid, paid account, available to or is
accounted for as an expense, from the first day of
January of the year immediately following the calendar
in which the Agreement enters into force; and
(b)
In Peru,
With regard to the rules on the income tax, from the

first of January of the year immediately following the
calendar in which the Agreement enters into force.
Section 30
COMPLAINT
1. This Agreement shall remain in force indefinitely, but
either of the Contracting States may, later than June 30
of each calendar year notice to the other Contracting
State a term in writing, through diplomatic channels.
2. The provisions of the agreement will not take effect:
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(a) In Chile,
With respect to taxes on income obtained and the
amounts that are paid, paid account, available to or
accounted for as expenditure, from the first day of
January of the year immediately following calendar;
(b) In Peru
With regard to the rules on the income tax, from the
first of January of the following calendar year.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto,

have signed the present Agreement.
DONE in Santiago, Chile, to the 8 days of the month of June

2001, in duplicate, both texts being equally authentic.
(Signed)
BY THE GOVERNMENT OF THE REPUBLIC OF PERU
(Signed)
BY THE GOVERNMENT OF THE REPUBLIC OF CHILE
PROTOCOL TO THE AGREEMENT BETWEEN THE REPUBLIC OF PERU AND

THE REPUBLIC OF CHILE TO AVOID DOUBLE TAXATION AND PREVENT
EVASION FISCAL IN RELATION TO TAX INCOME AND HERITAGE
At the time of the signing of the agreement between the
Government of the Republic of Peru and the Government of the
Republic of Chile on to avoid double taxation and prevent
fiscal evasion in relation to you taxes income and heritage,
the signatories have agreed the following provisions which
form an integral part of this Agreement:
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1. Section 7
It is understood that the provisions of paragraph 3 of
section 7 are applied only if costs can be attributed to the
permanent establishment in accordance with the provisions of
the tax legislation of the Contracting State in which the
permanent establishment is situated.
2. Section 10
(I) The provisions of paragraph 2 of section 10 shall
not restrict the application of the additional tax to pay in
Chile as the first category tax is deductible against the
additional tax.
(II) Subparagraph I), applies equally to the Peru if in
the future it establishes an integrated tax system similar to
which governs in Chile at the time of the signature of this
agreement, which shall include a full credit or with
equivalent effect by the income tax against the withholding
tax that affects the distribution or remittance of profits.
3. Section 12
If Chile and Peru, concluded after the entry into force of
this Agreement, an agreement with a third State which agreed
a rate tax on royalties that is lower than the willing in
this Agreement, the "lowest rate" shall apply for the
purposes of paragraph 2 of section 12 automatically, for the
purposes of the present Agreement and on the terms laid down
in the agreement with that third State After expiry of a
period of five years from the entry into force of this
Agreement and on the terms laid down in the agreement with
that third State, after expiry of a period of five years from
the entry into force of the Agreement. That "lowest rate" may
not, in any case, be less than the higher rate between the
lower rate signed by Chile and the rate minor signed by Peru
with third States. For the purposes of this provision, means
that Chile or Peru concluded an agreement with a third State
when this Agreement has entered into force.
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4. Section 23
(I)
It remit in the case of a distribution of
dividends by a resident company to a resident of the Peru
Chile, credit in the Peru will understand the first category
tax paid by the company in Chile on income with respect to
which the distribution of dividends is made. For the purposes
of the credit, the first category tax will be considered
after that has been part of the additional tax paid or
withheld to the shareholder.
(II) In the event that the taxable person of the
additional
tax
paid
in
Chile
no
longer
partner
or
shareholder, applied in the Peru credit will include the tax
paid by the company making the distribution.
(III) Finally, for the implementation of appropriations
in the Peru, the tax base will be income considered before
tax withholding and if applicable, the income considered
before the income tax of the company, that distributes
dividends.
5. General arrangements
(I) To the extent that Peru establishes a tax other
than income tax affecting the profits of the permanent
establishment in accordance with its law, such tax than the
tax benefits may not exceed the limit set forth in
subparagraph a) of paragraph 2 of section 10.
(II) It remit that income produced by ships factory is
not included in the scope of the Agreement, applying the
internal law of each State.
(III)
It remit the term person includes conjugal
societies and the undivided.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto,
have signed the present Agreement.
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DONE in Santiago, Chile, to the 8 days of the month of June

of the year 2001, in duplicate, both texts being equally
authentic.
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DTC Agreement Between Chile and Peru

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Sandra Pamela Tuesta Quispe

LEGISLATIVE RESOLUTION No. 27905

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ALLAN WAGNER TIZN

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Agreement signed with the Republic of Chile for the avoidance

AGREEMENT BETWEEN THE REPUBLIC OF PERU AND THE REPUBLIC OF

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models, including taxes on gains from the alienation of

(a) The term "Peru" means the "Republic of Peru"

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(c) The terms "a Contracting State" and "the other

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meaning attributed by prevailing tax on term under other

(c) If you usually lived in both States, or did not in

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(d) If it is a national of both States, or non-none of

3. The term "permanent establishment" also includes:

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(a) A work or construction, installation or Assembly

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5. However the provisions of paragraphs 1 and 2, when a

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other State (whether through a permanent establishment

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1. The profits of an enterprise of a Contracting State only

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shall be such that the result is in accordance with the

The charter or rental of land vehicles, aircraft or

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(II) The rental of containers and related equipment

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credit, allowing participating in profits, as well as

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owner is a resident of the other Contracting State, the

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exceed which had agreed the debtor and the creditor in

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4. The provisions of paragraphs 1 and 2 of this section are

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regarding royalties are paid to which outside the take

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only may be taxed in the Contracting State in which he

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1. Without prejudice to the provisions of sections 16, 18

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organ of a company resident in the other Contracting State

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The income of a resident of a Contracting State not referred

4. All other elements of the equity of a resident of a

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(c) To provide information that reveal commercial,

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with respect to whether a measure falls within the scope

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treated in the State referred to in the first place, in

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