Skip to Content

Application of the MLI to the Tax Treaty between Japan and Hong Kong

   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 in respect of tax treaties entered into by Hong Kong, the MLI applies to the tax treaty between Japan and Hong Kong as described below.

1. Tax treaty covered by the MLI
- “Agreement between the Government of Japan and the Government of the Hong Kong Special Administrative Region 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: November 9, 2010
       Date of entry into force: August 14, 2011

2. Provisions of the MLI applicable to 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 16(1), 1st sentence (Provisions for presentation of a case of taxation not in accordance with the provisions of the tax treaty for a mutual agreement procedure)

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 Hong Kong:
(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 the first day of the next calendar year that begins on or after 30 days after the date of receipt by the Depositary of the notification by China that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the tax treaty between Japan and Hong Kong; 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 the expiration of a period of six calendar months from 30 days after the date of receipt by the Depositary of the notification by China that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the tax treaty between Japan and Hong Kong; and
(b) in Hong Kong:
(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 30 days after the date of receipt by the Depositary of the notification by China that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the tax treaty between Japan and Hong Kong; 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 the expiration of a period of six calendar months from 30 days after the date of receipt by the Depositary of the notification by China that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the tax treaty between Japan and Hong Kong.

* A new press release will be issued once China makes the above-mentioned notification.