Tax treaties

Committee:
Tax
status:
Progress
Published:
Japan recently concluded new tax treaties with Morocco and Colombia and is in negotiations with several other countries to conclude new treaties or update existing treaties. The EBC welcomes treaties that include the exemption of withholding tax on royalties, qualified dividends and interest. However, its treaties with many EU Member States still need to be renegotiated and no treaties have been concluded with Cyprus,  Malta or Greece (although a treaty with Greece is under negotiation).

Recommendations

  • Any new or revised treaty should address the issue of withholding tax on royalties and qualified dividends and interest; and contain arbitration provisions if not already covered by the multilateral instrument.
  • Treaties should be agreed with those countries having no agreement with Japan at present.