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

 The MLI enters into force for Japan on January 1, 2019, and for Ukraine on December 1, 2019.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by Ukraine on August 8, 2019, the MLI applies to the tax treaty between Japan and Ukraine as described below.

1. Tax treaty covered by the MLI
    - “Convention between the Government of Japan and the Government of the Union of Soviet Socialist Republics for 
      the Avoidance of Double Taxation with respect to Taxes on Income”
      Date of signature: January 18, 1986 
      Date of entry into force: November 27, 1986
    * The provisions of the MLI applicable based on the reservations and notifications submitted by Japan and Ukraine
       will not affect the application of the above tax treaty between Japan and the countries other than Ukraine.

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 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 12(1) and (2) (Provisions regarding an agent that is deemed to constitute a permeant establishment)       
  - 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)       
  - Article 13(4) (Provisions for combining business activities carried on by closely related persons for the purpose of
    determining whether a permanent establishment exists)
  - Article 15 (Provisions for the definition of a person closely related to an enterprise)       
  - 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
(a) The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between
     Japan and Ukraine: 
    (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 June 1, 2020.   
(b) Notwithstanding (a), Article 16 (Mutual Agreement Procedure) shall have effect with respect to the tax treaty
     between Japan and Ukraine for a case presented to the competent authority of a Contracting Jurisdiction on or
     after December 1, 2019, except for cases that were not eligible to be presented as of that date under the tax
     treaty between Japan and Ukraine prior to its modification by the MLI, without regard to the taxable period to
     which the case relates.