On signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital between the Government of the Russian Federation and the Government of the Republic of Chile, the signatories have agreed that the following provisions shall form an integral part of the Convention.
In General
a) With respect to pooled investment accounts or funds (as for instance the existing Foreign Capital Investment Fund, Law N18.657), that are subject to a remittance tax and are required to be administered by a resident of Chile, the provisions of this Convention shall not be interpreted to restrict imposition by Chile of the tax on remittances from such accounts or funds in respect of investment in assets situated in Chile.
b) If both parties are subject to the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding the paragraph 3 of Article XXII (Consultation) of that agreement, any dispute between them as to whether a measure falls within the scope of this Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph 3 of Article 25 or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States.
c) Nothing in this Convention shall affect the application of the existing provisions of the Chilean legislation DL 600 (Foreign Investment Statute) as they are in force at the time of signature of this Convention and as they may be amended from time to time without changing the general principle thereof.
d) Nothing in this Convention shall affect the taxation in Chile of a resident of Russia in respect of profits attributable to a permanent establishment situated in Chile, under both the First Category Tax and the Additional Tax but only as long as the First Category Tax is deductible in computing the Additional Tax.
Article 7
It is understood that the provisions of paragraph 3 of Article 7 shall apply only if the expenses can be attributed to the permanent establishment in accordance with the provisions of the tax legislation of the Contracting State in which the permanent establishment is situated.
Article 10
The provisions of paragraph 2 of Article 10 shall not limit application of the Additional Tax payable in Chile provided that the First Category Tax is fully creditable in computing the amount of Additional Tax.
IN WITNESS WHEREOF the signatories, duly authorised to that effect, have signed this Protocol.
DONE in duplicate at Santiago, this 19th day of November 2004,
in the Russian, Spanish and English languages, all texts being equally authentic. In case of divergence between the Russian and the Spanish texts, the English text shall prevail.