Agreement Between the Governments of the Republic of the Philippines and the Republic of Chile to Reduce the Taxes on Freight Revenues Generated by the Vessels of Both Countries

July 18, 1998 AGREEMENT BETWEEN THE GOVERNMENTS OF THE REPUBLIC OF THE PHILIPPINES AND THE REPUBLIC OF CHILE TO REDUCE THE TAXES ON FREIGHT REVENUES GENERATED BY THE VESSELS OF BOTH COUNTRIES Philippines-Chile Bangladesh Tax Treaty Limited on Income from Shipping Date of Signature : 18 July 1998 (Manila, Philippines) Status : Pending ratification WHEREAS, the Governments of the Republic of the Philippines and the Republic of Chile, hereinafter called the "Contracting Parties," desire to promote the development of their respective merchant fleets through reduction of taxes assessed on the gross revenues generated by their respective vessels; WHEREAS, there is a need to foster trade and to further strengthen the relations between the two countries; cSCTID NOW, THEREFORE, for and in consideration of the foregoing, both Governments have agreed to sign this Agreement with the following provisions: ARTICLE I Each Contracting Party agrees to apply a tax of 1.5% to the freight revenues, commissions or other incomes generated by the vessels of the other Contracting Party for the transport of cargoes and/or passengers to and from the ports of the former or from foreign ports. ARTICLE II The tax shall be calculated from the total amount of the income coming from the operations referred to in Article I. ARTICLE III The parties shall inform each other reciprocally of the completion of the legal internal proceedings and its compliance therewith. The Agreement shall take effect immediately upon the exchange of the instruments of ratification which shall take place in Santiago, Republic of Chile. ARTICLE IV The Agreement shall have an indefinite duration. A Contracting Party may denounce the Agreement by formal notice presented though diplomatic channels six (6) months prior to the desired date of termination. DONE in the City of Manila this 18th of July of the year 1988 in two (2) copies in English and Spanish languages, both valid and authentic. BY THE GOVERNMENT OF THE BY THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES REPUBLIC OF CHILE (SGD.) RAUL S. MANGLAPUS (SGD.) CARLOS DESGROUX Secretary Ambassador for Chile Department of Foreign Affairs