Amid Spy Balloon Controversy, Democratic Senator Chuck Schumer Urges His Colleagues To prevent China from taking advantage of our country’s lithium, sign a double taxation treaty with Chile as soon as possible.
and he is While the Beijing government has already signed a similar agreement in January 2017 And because of its tax advantages, the United States Congress has not ratified the agreement for a decade, which has been signed only by the Chilean party.
“US companies face double taxation in Chile and are at a disadvantage compared to companies in other countries such as China. We don’t want China to get that lithium; We need it,” Schumer said of it.
However, according to the Treasury, as in the case of the United States, Chile, through temporary legislation, has established that only resident United States taxpayers are taxed with respect to taxation of profits remitted abroad as if any signed treaty Are.
In any case, Senator Schumer insisted that the treaty would make it easier for US companies to obtain lithium in Chile. For it to go ahead, the treaty must be approved by the Senate Foreign Relations Committee in this new legislative term., After this step, you can go for full turnout. If he gets the green signal, the treaty will go to the State Department and from there to President Joe Biden’s desk for ratification.
The document was signed by Chile and the United States in 2010 and ratified by the Chilean Congress in 2015. Schumer isn’t the only one concerned about the deal. In August 2022, US Treasury Secretary Janet Yellen also urged lawmakers to pass the treaty.,
At the time, she stressed that the proposal was “a critical component of the Treasury Department’s efforts” and made it clear that “we want to strategically expand America’s tax treaty web,” Yellen told dozens of congressmen at the time. said in a letter If approved, the treaty signed with Mexico would be the second such treaty the United States has signed in Latin America.