With this DTA, Switzerland can extend its network of double taxation agreements to its most important trading partner in Latin America. It is the first DTA to be concluded between the two countries. The agreement will ensure legal certainty and a contractual framework that will have a beneficial impact on the two states' economic relations.
The DTA takes account of the outcomes of the OECD's base erosion and profit shifting (BEPS) project. Specifically, it contains an anti-abuse clause. Moreover, the DTA contains an administrative assistance clause in accordance with the current international standard for the exchange of information upon request.
The cantons and the business associations concerned have welcomed the conclusion of this DTA. The agreement still has to be approved by parliament in both countries before it can come into force.