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In media release No 2010/038, 10 March 2010, the Assistant Treasurer, Senator Nick Sherry, announced that Australia and Chile have signed a new income tax treaty - the first between the two countries.

Legislation to give the new treaty the force of law will be introduced into the Parliament as soon as practicable. After entry into force, the provisions of the new tax treaty will take effect in Australia in four stages, namely:

  • in respect of withholding tax, on income derived on or after the first day of the second month following entry into force;
  • in respect of fringe benefits tax, on fringe benefits derived on or after 1 April in the year following entry into force;
  • in respect of other tax, on income derived in the year beginning 1 July following entry into force; and
  • in respect of administrative provisions, upon entry into force.


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