Skip to Content

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

The MLI enters into force for Japan on January 1, 2019, and for Singapore on April 1, 2019.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Singapore on December 21, 2018, the MLI applies to the tax treaty between Japan and Singapore as described below.

1. Tax treaty covered by the MLI
  - “Agreement between the Government of Japan and the Government of the Republic of Singapore for the Avoidance
     of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on
     Income” Date of signature: April 9, 1994
     Date of entry into force: April 28, 1995
  - “Protocol Amending the Agreement between the Government of Japan and the Government of the Republic of
   Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on
   Income”
   Date of signature: February 4, 2010
   Date of entry into force: July 14, 2010

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 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length principle)
  - Part VI (Provisions regarding arbitration for resolving a case of taxation not in accordance with the provisions of the
    tax treaty)
  - Article 19(12) (Provisions that provide that an unresolved issue arising from the case on which a decision has
    already been rendered by a court or administrative tribunal shall not be submitted to arbitration)
  - Article 23(3) (Provisions that require the competent authorities to endeavor to reach mutual agreement for the type
    of arbitration process)
  - Article 23(5) (Provisions regarding non-disclosure obligation on the presenters of the case for any information
    received during the course of arbitration proceedings)
  - Article 28(2)(a) (Provisions regarding the scope of cases eligible for arbitration)

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 Singapore:
 (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, 2020; 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 October 1, 2019.
(b) Notwithstanding (a), the provisions of Part VI (Arbitration) shall have effect:
 (i) with respect to cases presented to the competent authority of a Contracting Jurisdiction (as described in
        subparagraph a) of paragraph 1 of Article 19 (Mandatory Binding Arbitration)), on or after April 1, 2019; and
 (ii) with respect to cases presented to the competent authority of a Contracting Jurisdiction prior to April 1, 2019
   (only to the extent that the competent authorities of both Contracting Jurisdictions agree that Part VI will apply to
        that specific case), on the date when both Contracting Jurisdictions have notified the Depositary that they have
        reached mutual agreement pursuant to paragraph 10 of Article 19 (Mandatory Binding Arbitration), along with
        information regarding the date or dates on which such cases shall be considered to have been presented to the
        competent authority of a Contracting Jurisdiction (as described in subparagraph a) of paragraph 1 of Article 19
       (Mandatory Binding Arbitration))  according to the terms of that mutual agreement.