Tax Treaty Case Law around the Globe 2025

Cristóbal Pérez Jarpa

1. Introduction

Inversiones Capital Global S.A. con Servicio de Impuestos Internos Dirección Regional Santiago Centro (Capital Global case) is a tax case (reclamo tributario) decided on 7 September 2021 in first instance by the First Tax and Customs Court of the Metropolitan Region (Primer Tribunal Tributario y Aduanero de la Región Metropolitana de Santiago (“Tax Court”)), Ruc 17-9-0000170-3, Rit GR-15-00010-2017. In the second instance, the Court of Appeal of Santiago (Corte de Apelaciones de Santiago), Rol 197-2021 amended the Tax Court‘s decision. The case’s decision is still pending on the appeal at the Supreme Court (Corte Suprema), Rol 87881-2023.

It is an interesting and recent landmark case law in Chile that relates to the interpretation of Art. 13(4) and 13(5) of the tax treaty between Chile and Spain signed on 7 July 2003 in force since 1 January 2004 and Arts. 10 and 58(3) of the Chilean Income Tax Law (ITL) regarding offshore indirect transfer of shares (OITS). The main question was whether the referred tax treaty provisions limit the scope of application of the OITS’ domestic tax rules.

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