The US-Chile Tax Treaty’s approval in December 2023 gives businesses opportunity to increase their profitability through three areas: elimination of double taxation, foreign tax credits, and lithium-ion imports. The new treaty contains a variety of monetary benefits that should incentivize new investment and growth between the two countries—a positive step. But individuals and businesses must thoroughly analyze all treaty requirements, such as value-added tax and limitations on benefits, before expanding operations to ensure success.
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