1. Taxation on Business Profits
Where an enterprise of one of the two countries has in the other country a permanent establishment (such as a branch) through which the enterprise carries on business, only the profits attributable to the permanent establishment may be taxed in that other country.
2. Taxation on Investment Income
Taxation on investment income (dividends, interest and royalties) in the source country will be subjected to the maximum rates or exempted as follows:
| Dividends | 5% (holding for 6 months at least 10% of: where paid by a company of Japan, voting power; where paid by a company of Greece, capital or voting power) 10% (others) |
|---|---|
| Interest | Exempted (received by the Governments, etc.) 10% (others) |
| Royalties | 5% |
3. Mutual Agreement Procedure and Arbitration Proceedings
Taxation not in accordance with the provisions of the Convention may be resolved by mutual agreement between the tax authorities of the two countries. In addition, where such taxation has not been resolved through the consultation between the tax authorities of the two countries within three years, the unresolved issue will be resolved pursuant to a decision of an arbitration panel composed of third parties.
4. Exchange of Information and Assistance in Collection of Tax Claims
In order to effectively prevent international tax evasion and tax avoidance, the exchange of information concerning tax matters and the mutual assistance in the collection of tax claims between the two countries are introduced.
5. Prevention of Abuse of the Convention
In order to prevent abuse of benefits under the Convention, any benefit under the Convention will not be granted if the income is attributable to a permanent establishment in a third country and the tax on the income in the third country is less than a certain amount of tax, or if it is reasonable to conclude that obtaining such a benefit was one of the principal purposes of any transaction.