Chile Tax Agency Clarifies Taxation of Foreign Pension Income Under 2004 DTA, Protocol With Sweden

The Chilean Internal Revenue Service March 21 issued Letter No. 909, clarifying the taxation of pension income under the 2004 DTA and protocol with Sweden. The taxpayer was a Swedish citizen who retired in Sweden and had a Swedish pension. As a holder of a foreign pension, we was qualified to make health care contributions in Chile. He inquired as to whether he was required to pay taxes in Chile. The Tax Agency responded that: 1) under the DTA, the Swedish pension could be taxed in both countries if he was considered resident in Chile under the DTA; 2) under ...