VAT exemption for international shipping between China and Chile

On April 14, China issued a document, saying that Chile will grant equal treatment to Chinese international transport enterprises, while exempting Chilean enterprises from value-added tax for their income from international transport business by ships or aircraft.
 
The "Protocol on Amending the Agreement between China and Chile on Avoidance of Double Taxation and Tax Evasion" was formally signed on May 29, 2018 in Santiago, Chile.
 
Article 1 of the Protocol stipulates that enterprises of one Contracting State engaged in international transportation business in the other Contracting State by ship or aircraft shall be exempt from VAT in the other Contracting State.
 
According to the regulation, China will exempt Chilean enterprises from value-added tax on their income from international transport business in China by ships or aircraft, and Chile will give Chinese international transport enterprises equal treatment.
 
According to Article 2 of the Protocol, the Protocol applies to income obtained on or after January 1, 2017.
 
Source: Sarah Yu, XINDE MARINE NEWS

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.