Austria amended its 2012 tax treaty with Chile on 16 May, 2024. The amendments, effective 1 January 2017, will reduce withholding taxes on interest and royalty payments made between residents of both countries.

This change follows the activation of a “Most Favoured Nation” (MFN) clause in the treaty, triggered by Chile’s 2016 tax agreement with Japan.

New Withholding Tax Rates

  • Interest:
    • 4% for banks, insurance companies, and qualified lenders.
    • 5% for interest on certain traded securities.
    • 10% in all other cases (previously 15%).
  • Royalties:
    • 2% for royalties on industrial, commercial, or scientific equipment.
    • 10% in all other cases.