Tax Convention with the United Arab Emirates was Signed
[Provisional translation]
May 2, 2013
Ministry of Finance
Tax Convention with the United Arab Emirates was Signed
Today, the Government of Japan and the Government of the United Arab Emirates signed the Convention between Japan and the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income in Dubai. This Convention is the first tax convention concluded between Japan and the United Arab Emirates, based on the recognition of an increasingly close economic relationship between the two countries.
This Convention is to clarify the taxation in respect of investment and economic activities carried on in the partner country with a view to enhance further mutual investment and economic exchanges between the two countries.
This Convention also provides for the effective exchange of information regarding tax matters between the tax authorities in accordance with the international standards, and is expected to contribute to the prevention of international tax evasion and tax avoidance.
[Reference 1]Procedures to be taken
After the necessary domestic procedures are carried out by the two countries (in the case of Japan, approval by the Diet will be necessary), diplomatic notes indicating the completion of the said procedures are to be exchanged. This Convention will enter into force on the thirtieth day after the date of exchange of diplomatic notes and will be applicable as follows in Japan:
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(1) with respect to taxes withheld at source, for amounts taxable on or after 1 January in the calendar year next following that in which this Convention enters into force;
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(2) with respect to taxes on income which are not withheld at source, as regards income for any taxable year beginning on or after 1 January in the calendar year next following that in which this Convention enters into force; and
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(3) with respect to other taxes, as regards taxes for any taxable year beginning on or after 1 January in the calendar year next following that in which this convention enters into force.
[Reference 2] Texts and Key Points of this Convention
- “Convention between Japan and the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” (Japanese / English
(305KB / 126KB)) - Key Points of the Tax Convention with the United Arab Emirates
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