- a)Where in any other convention Chile agrees to limit the application of the Additional Tax payable in Chile, the Contracting States shall consult with each other with a view to amending the Convention in order to re-establish the balance of benefits under the Convention.
- b)Where
- (i)the rate of the Additional Tax imposed under the domestic law of Chile exceeds 35 per cent; or
- (ii)the First Category Tax ceases to be fully creditable in determining the amount of Additional Tax to be paid,
then paragraph 4 of Article 10 of the Convention shall not apply and the tax charged under subparagraphs (a) and (b) of paragraph 2 of Article 10 of the Convention shall not exceed 20 per cent of the gross amount of dividends paid by a company which is a resident of a Contracting State and beneficially owned by a resident of the other Contracting State. In this case the Contracting States shall consult with each other with a view to amending the Convention in order to re-establish the balance of benefits under the Convention.
