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Application of the MLI to the Tax Treaty between Japan and China

   The MLI enters into force for Japan on January 1, 2019, and for China on September 1, 2022.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by China on May 25, 2022, the MLI applies to the tax treaty between Japan and China as described below.

1. Tax treaty covered by the MLI
- “Agreement between the Government of Japan and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
      Date of signature: September 6, 1983
      Date of entry into force: June 26, 1984

2. Provisions of the MLI applicable to the tax treaty
    - 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 6(3) (Preamble language referring to a desire of the Contracting Jurisdictions to develop their economic relationship and to enhance their co-operation in tax matters)
    - 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 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 China:
(a) 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, 2023; and
(b) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable periods beginning on or after March 1, 2023.