Chile withdraws from UN international tax cooperation convention

The government of José Antonio Kast has formally withdrawn Chile from the United Nations Convention on International Tax Cooperation. The decision follows a technical evaluation by the Ministry of Foreign Affairs, which concluded that the proposed legal instrument could limit the country’s fiscal sovereignty.

The convention, which began development in 2025 and is expected to conclude in 2027, aims to create a global tax cooperation system to standardize criteria and combat practices such as tax evasion, base erosion, and profit shifting. Its primary goal is to ensure multinational corporations and transnational entities pay taxes in a manner that supports national economies.

Chilean officials stated that the current text of the agreement presents “considerable uncertainties regarding its scope and functioning” that could infringe upon national tax authority. The government emphasized that any international commitment must align with Chile’s constitutional framework, existing international obligations, and domestic fiscal policy.