January 18, 2017
Ministry of Finance
Tax Convention with Latvia was Signed
[Provisional translation]
1. Today, the Government of Japan and the Government of the Republic of Latvia signed the Convention between Japan and the Republic of Latvia for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance in Tokyo. This Convention is the first tax convention to be concluded between Japan and the Republic of Latvia in light of an increasingly close economic relationship between the two countries.
2. For the purpose of eliminating double taxation arising between the two countries, this Convention clarifies the scope of taxable income in the two countries. In addition, this Convention will enable the tax authorities of the two countries to consult each other on taxation not in accordance with the provisions of this Convention, exchange information concerning tax matters and mutually lend assistance in the collection of tax claims. It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Convention promotes further mutual investments and economic exchanges between the two countries.
【Reference 1】 Next Steps
After the approval in accordance with the domestic procedures of the two countries (in the case of Japan, approval by the Diet is necessary), this Convention will enter into force on the date of exchange of diplomatic notes indicating such approval and will have effect:
(a) in the case of Japan:
(i) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after 1 January in the calendar year next following that in which the Convention enters into force; and
(ii) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after 1 January in the calendar year next following that in which the Convention enters into force; and
(b) in the case of Latvia:
(i) with respect to taxes withheld at source, on income derived on or after 1 January in the calendar year next following that in which the Convention enters into force; and
(ii) with respect to other taxes, for taxes chargeable for any taxable year beginning on or after 1 January in the calendar year next following that in which the Convention enters into force.
【Reference 2】 Texts and Key Points of the Convention
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