Chile Confirms Tax Credit May be Claimed under Tax Treaty with Colombia for CREE Tax Paid

The Chilean tax authority (Servicio de Impuestos Internos - SII) has published Letter Ruling No. 1045 of 17 April 2019 concerning the availability of a tax credit under the 2007 Chile-Colombia tax treaty for Colombia's CREE fairness tax. The ruling confirms that CREE tax is a tax of a fiscal nature that qualifies as a covered tax under Article 2 of the treaty and therefore CREE tax paid can be claimed as a credit against Chile's First Category Tax (corporate income tax).

Note - Colombia re…