[Revised on February 12, 2021]
The MLI enters into force for Japan on January 1, 2019, and for Germany on April 1, 2021.Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Germany on December 18, 2020, the MLI applies to the tax treaty between Japan and Germany as described below.
1. Tax treaty covered by the MLI
-“Agreement between Japan and the Federal Republic of Germany for the Elimination of Double
Taxation with respect to Taxes on Income and to certain other Taxes and the Prevention of Tax Evasion and
Avoidance”
Date of signature: December 17, 2015
Date of entry into force: October 28, 2016
2. Provisions of the MLI applicable to the tax treaty
- 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 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)
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 Germany:
(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 Germany that it has completed its internal procedures
for the entry into effect of the provisions of the MLI with respect to the tax treaty with Japan; 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 Germany that it has completed its internal procedures for the
entry into effect of the provisions of the MLI with respect to the tax treaty with Japan; and
(b) in Germany:
(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 Germany that it has completed its internal procedures
for the entry into effect of the provisions of the MLI with respect to the tax treaty with Japan; 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 1 January of the next year 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 Germany that it
has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the
tax treaty with Japan.
* A new press release will be issued once Germany makes the above-mentioned notification.