Chile Tax Agency Clarifies Taxation of Withdrawal From Pension Fund Under DTA With Peru

The Chilean Internal Revenue Service Dec. 23 issued Letter No. 3642, clarifying the taxation of an amount withdrawn from a pension fund in Peru under the 2001 DTA and protocol with Peru. A taxpayer sought clarification as to whether an amount withdrawn from a pension fund in Peru qualified as pension income in Chile. The tax agency clarified that the income will qualify under the DTA if: 1) it was received from a foreign source; 2) it has similar characteristics to the pensions granted in that country; and 3) it was received periodically and not as a one-time payment. [Chile, ...