(July 16, 2015)

On July 16, 2015 the Ministry of Finance of Japan issued a press release announcing that the Governments of Japan and Germany have agreed in principle on a new Agreement to be concluded. This new Agreement will replace the existing Agreement between Japan and the Federal Republic of Germany for the Avoidance of Double Taxation with respect to Taxes on Income and to certain other Taxes stemming from 1966.

According to the press release the new Agreement wholly amends the contents of the current Agreement. It also states that the new Agreement will reduce taxes withheld at source on dividends, interest and royalties, updates the article concerning taxation on business profits, and introduces the arbitration proceeding to the mutual agreement procedure to ensure the settlement of disputes with respect to the Agreement. According to the press release the new Agreement also expands the cooperation between the tax authorities of the two countries by introducing an Article concerning assistance in the collection of taxes.

The press release concludes by stating that the new Agreement will be signed after the necessary internal procedures have been completed by each of the two Governments. Subsequently the respective ratification procedures have to have been finalized in both countries for the DTA to enter into force.

Are you looking for an other DTA? Then check our section DTAs & TIEAs, a very efficient way to locate numerous DTAs.

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