RECENT DEVELOPMENTS IN INTERNATIONAL TAXATION
Governments of the countries belonging to the Pacific Alliance signed the completion of the negotiation of the multilateral convention to prevent the double taxation for pension funds
This measure represents a commitment for the development of the capital markets of the countries members of the Pacific Alliance and better investment opportunities for funds
Within the framework of the meetings of the High Level Group (“GAN” as per its acronym in Spanish) of the Pacific Alliance, the Ministry of Finance of Colombia, Mauricio Cárdenas, the Secretary of Finance of Mexico, José Antonio Meade; the Deputy Minister of Finance of Peru, Claudia Cooper and de Deputy Minister of Chile, Alejandro Micco, concluded the negotiation of the Double Taxation Treaty for pension funds.
The signature of this multilateral convention will allow the pension funds in México, Peru, Chile and Colombia to avoid double taxation and will bring better investment opportunities for such funds.
Once the Convention is adopted and incorporated to the internal legislation of each country, pension funds will acquire the condition of tax residents in each country provided certain conditions are met, thereby ensuring that the legal provisions of the double taxation agreements will be applied to them.