Double Taxation Relief Manual: Guidance by country: Chile: Royalties
Chilean tax on royalties paid to a UK resident recipient who is the beneficial owner of the royalties is reduced to:
1. 5 per cent of the gross amount of the royalties for the use of, or the right to use, industrial, commercial or scientific equipment, 2. 10 per cent of the gross amount of the royalties, in all other cases.
except where the right or property in respect of which the royalties are paid is effectively connected with a permanent establishment which the UK resident recipient has in Chile. In the latter circumstances, the provisions of the Business profits Article (Article 7) will apply.