Argentina proposes revoking Chilean corporate tax benefits

Argentine Deputy Guillermo Michel has introduced a legislative project proposing that the National Executive formally withdraw from two bilateral agreements with Chile. The move aims to revoke fiscal and tax benefits currently granted to Chilean companies operating in Argentina.

The proposal is a response to the planned resumption of a commercial maritime route between Punta Arenas, Chile, and the Malvinas Islands, scheduled for November. The service is expected to be operated by the Chilean-flagged vessel Danstar, owned by Easter Island Naviera, to supply the islands.

Michel characterized the resumption of this route as a “lack of solidarity from Chile with the Malvinas cause.” The project calls on the Ministry of Foreign Affairs, International Trade and Worship to denounce the Treaty on the Promotion and Reciprocal Protection of Investments (Law 24.342) and the Convention for the Elimination of Double Taxation (Law 27.274). These agreements currently provide Chilean investors with protections and limits on withholdings for dividends, interest, and royalties.