The French tax authorities have published a notice confirming the activation of the MFN clause included in paragraph 6 of the Protocol to the 2004 capital tax treaty with Chile. The activation is a result of the entry into force of Chile's 2016 tax treaty with Japan, which is effective from 1 January 2017.
The notice includes that the following withholding tax rates apply as from 1 January 2017 with respect to interest income:
- The rate is 4% where the beneficial owner of the interest is:
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