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In media release No 2010/011 issued on 22 January 2010, the Assistant Treasurer, Senator Nick Sherry, announced that Australia and Chile had reached agreement in principle on a new income tax treaty - the first between the two countries.

The Minister said that the proposed treaty is based on the OECD Model Tax Convention, with some mutually agreed variations reflecting the economic, legal and cultural interests of each country.

After the Governments of the two countries have completed the necessary procedures, the proposed treaty will be signed and submitted to the respective Parliaments. It will enter into force after approval by the Parliaments and an official exchange of notes.


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