The updated agreement incorporates provisions aligned with the OECD BEPS standards and introduces enhancements to the taxation of dividends, interest, and royalties.
Officials from Chile and Paraguay have concluded discussions to revise their 2025 tax treaty, as announced by Paraguay’s National Directorate of Tax Revenue (DNIT) on 15 October 2025.
The income tax treaty is intended to eliminate double taxation, combat tax evasion, and prevent tax avoidance between the two nations.
The updated agreement incorporates provisions aligned with the OECD BEPS standards and introduces enhancements to the taxation of dividends, interest, and royalties.
Additionally, the treaty revisions include updates to the articles concerning the exchange of information and mutual assistance in tax collection.
It is expected that these changes will be formalised through an amending protocol.
