The MLI enters into force for Japan and Israel on January 1, 2019.
Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Israel on September 13, 2018, the MLI applies to the tax treaty between Japan and Israel as described below.
1. Tax treaty covered by the MLI
- “Convention between Japan and the State of Israel for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income”
Date of signature: March 8, 1993
Date of entry into force: December 24, 1993
2. Provisions of the MLI applicable to the tax treaty
- Article 3(1) (Provisions regarding income derived by or through an entity or arrangement that is treated as
fiscally transparent)
- Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall
be treated as a resident of one of the Contracting Jurisdictions for the purposes of the tax treaty)
- Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will
not create opportunities for non-taxation or reduced taxation)
- Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the
principal purposes of any arrangement or transaction was to obtain those benefits)
- Article 9(4) (Provisions for taxation on capital gains from alienation of shares or interests of entities
deriving their value principally from immovable property)
- Article 10(1) to (3) (Provisions that deny the benefits under the tax treaty with respect to a certain income
attributable to a permanent establishment situated in a third jurisdiction)
- Article 12(1) and (2) (Provisions regarding an agent that is deemed to constitute a permeant establishment)
- Article 13(2) (Provisions regarding an activity that is deemed not to constitute a permanent establishment
even if the activity is carried on through a fixed place of business)
- Article 13(4) (Provisions for combining business activities carried on by closely related persons for the
purpose of determining whether a permanent establishment exists)
- Article 15 (Provisions for the definition of a person closely related to an enterprise)
- Article 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length
principle)
3. Entry into effect
The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax
treaty between Japan and Israel:
(a) in Japan:
(i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event
giving rise to such taxes occurs on or after January 1, 2019; and
(ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with
respect to taxable periods beginning on or after July 1, 2019; and
(b) in Israel:
(i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where
the event giving rise to such taxes occurs on or after the first day of the next taxable period that
begins on or after January 1, 2019; and
(ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with
respect to taxable periods beginning on or after January 1, 2020.
Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Israel on September 13, 2018, the MLI applies to the tax treaty between Japan and Israel as described below.
1. Tax treaty covered by the MLI
- “Convention between Japan and the State of Israel for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income”
Date of signature: March 8, 1993
Date of entry into force: December 24, 1993
2. Provisions of the MLI applicable to the tax treaty
- Article 3(1) (Provisions regarding income derived by or through an entity or arrangement that is treated as
fiscally transparent)
- Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall
be treated as a resident of one of the Contracting Jurisdictions for the purposes of the tax treaty)
- Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will
not create opportunities for non-taxation or reduced taxation)
- Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the
principal purposes of any arrangement or transaction was to obtain those benefits)
- Article 9(4) (Provisions for taxation on capital gains from alienation of shares or interests of entities
deriving their value principally from immovable property)
- Article 10(1) to (3) (Provisions that deny the benefits under the tax treaty with respect to a certain income
attributable to a permanent establishment situated in a third jurisdiction)
- Article 12(1) and (2) (Provisions regarding an agent that is deemed to constitute a permeant establishment)
- Article 13(2) (Provisions regarding an activity that is deemed not to constitute a permanent establishment
even if the activity is carried on through a fixed place of business)
- Article 13(4) (Provisions for combining business activities carried on by closely related persons for the
purpose of determining whether a permanent establishment exists)
- Article 15 (Provisions for the definition of a person closely related to an enterprise)
- Article 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length
principle)
3. Entry into effect
The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax
treaty between Japan and Israel:
(a) in Japan:
(i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event
giving rise to such taxes occurs on or after January 1, 2019; and
(ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with
respect to taxable periods beginning on or after July 1, 2019; and
(b) in Israel:
(i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where
the event giving rise to such taxes occurs on or after the first day of the next taxable period that
begins on or after January 1, 2019; and
(ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with
respect to taxable periods beginning on or after January 1, 2020.