The fiscal treatment of profits according to the 2010 OECD covention model and its impact on the chilean network of double taxation agreements

Abstract

Considering the significance and scope of the Article 7 amendment of the 2010 OECD Convention Model and the influ-ence that this model implies for the Chilean network of double taxation convention, the paper focuses on two main objectives: contrast the new version of the aforementioned Article with its previous 2008 version and analyze the impact that this provision had, and should have, for Chilean tax treaties. After a thorough review of double taxation agreements signed by Chile our analysis shows that none is adapted to the new version of Article 7, this includes existing agreements at the time of the 2010 reform and subsequent treatments signed after that date. We understand that in order to maintain a consistent line with its international tax treaties history, and considering its recent incorporation as member of the OECD (2010), it is desirable that Chilean Administration should follow, at least in the new treaties, these recent OECD guidelines.