IRS Adds Chile to Qualified Foreign Corporation Treaty List

The IRS on Friday added Chile to a list of treaties with countries that satisfy requirements for qualified foreign corporations.

The IRS released Notice 2024-11 which states that under Section 1(h)(11) of the US tax code, a dividend paid to an individual shareholder from a “qualified foreign corporation” is normally subject to tax at reduced rates for certain capital gains. The definition of “qualified foreign corporation” includes foreign companies that are allowed benefits from income tax treaties with the US that the Treasury secretary deems “satisfactory” and have an exchange-of-information program.

• The IRS said the list of treaties that satisfies ...