Japanese Tax Agreement

In general, international tax treaties contain the following definitions and rules, but are not exhaustive: Japan has entered into social security agreements with several countries to avoid duplication of social security registration. The current agreements with Australia, Belgium, Brazil, Canada, China, the Czech Republic, France, Germany, Hungary, India, Ireland, Korea, Luxembourg, the Netherlands, the Philippines, the Slovak Republic, Spain, Switzerland, the United Kingdom and the United States of America are applicable on June 30, 2020. Agreements with Finland, Italy and Sweden have been signed and are in the process of being implemented. (Note 2) The number of conventions and jurisdictions is as follows: „tax treaties“ (a convention that mainly deals with the elimination of double taxation and the prevention of tax evasion and evasion); 65 agreements applicable to 74 legal systems. 11 conventions that apply to 11 jurisdictions (these laws are marked above). The entry into force of 109 legal orders (excluding Japan) (these jurisdictions are highlighted above) and applies to 127 legal orders due to the extension of the application of the Convention (the powers to which the Convention is extended are emphasized with dotted lines). 55 out of 127 countries do not have a bilateral agreement with Japan. private sector tax agreements with Taiwan; The agreement entered into force in Japan from 1 January 2007 for: 5. The imposition of the mutual agreement procedure, which is not in accordance with the provisions of this convention, can be resolved by mutual agreement between the tax authorities of the two countries. A tax treaty can significantly change a company`s commitment to Japanese taxation.

Many criteria can be changed by a tax treaty, especially in the case of the qualification of a stable institution. For a European SME wishing to operate in Japan, it is therefore important to review the content of the treaty.


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