Tax treaty update: Senate Foreign Relations Committee votes to advance income tax treaty with Chile to full Senate vote

U.S. Senate Foreign Relations Committee voted to advance income tax treaty with Chile to a full Senate vote

Senate Foreign Relations Committee votes to advance income tax treaty with Chile

Article Posted date 01 June 2023

The U.S. Senate Foreign Relations Committee today voted (20-1) to advance the income tax treaty with Chile to a full Senate vote.

Under the U.S. Constitution, the U.S. Senate must approve, by a two-thirds vote, treaties that are negotiated by the executive branch. The Senate does not ratify treaties. Instead, the Senate takes up a “resolution of ratification” by which the Senate formally gives its advice and consent, empowering the president to proceed with ratification.

The United States-Chile income tax treaty was signed in February 2010 and has been pending ratification in the United States since then. Today’s approval by the Foreign Relations Committee means that the treaty will be reported by the Committee for possible consideration by the full Senate. If or when the full Senate would consider the treaty is unknown. In practice, income tax treaties are rarely approved by the Senate except by unanimous consent, that is, a single member can often prevent approval. Senate approval of the Chile treaty is therefore uncertain.

The treaty was ratified by Chile in 2015.

Documents

 

Download pdf (1.2 MB)

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.