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Application of the MLI to the Tax Treaty between Japan and Czech Republic

The MLI enters into force for Japan on January 1, 2019, and for Czech Republic on September 1, 2020.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Czech Republic on May 13, 2020, the MLI applies to the tax treaty between Japan and Czech Republic as described below. 

1. Tax treaty covered by the MLI
  -“Convention between Japan and the Czechoslovak Socialist Republic for the Avoidance of Double Taxation
    with respect to Taxes on Income”
    Date of signature: October 11, 1977
    Date of entry into force: November 25, 1978

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 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)
  - Article 16(1), 2nd sentence (Provisions that provide that a case must be presented for a mutual agreement
    procedure within three years)
  - Article 16(2), 2nd sentence (Provisions that provide that any agreement reached under a mutual agreement
    procedure shall be implemented)

3. Entry into effect
(a) The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between
     Japan and Czech Republic: 
   (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, 2021; 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 March 1, 2021.
(b) Notwithstanding (a), Article 16 (Mutual Agreement Procedure) shall have effect with respect to the tax treaty
     between Japan and Czech Republic for a case presented to the competent authority of a Contracting Jurisdiction
     on or after September 1, 2020, except for cases that were not eligible to be presented as of that date under the tax
     treaty between Japan and Czech Republic prior to its modification by the MLI, without regard to the taxable period
     to which the case relates.