In a nearly unanimous vote, a tax treaty between the United States and Chile passed the U.S. Senate on June 22, 2023. Supporters say this could boost investment between the two countries by greatly reducing certain taxes. U.S. citizens and residents who pay taxes to Chile will be able to claim a tax credit on their U.S. income tax. Also, certain U.S. businesses will be able to deduct dividends earned from Chilean companies. Senate Finance Committee Chair Ron Wyden (D-OR) said this bill will “strengthen our economic relationship with Chile and improve our access to key minerals including lithium needed for batteries” used in electric vehicles. President Biden is expected to sign the treaty.
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