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

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

1. Tax treaty covered by the MLI
 - “Convention entre le Gouvernement du Japon et le Gouvernement de la République française en vue
  d’éviter les doubles impositions et de prévenir l’évasion et la fraude fiscales en matière d’impôts sur le
  revenu”
  Date of signature: March 3, 1995
  Date of entry into force: March 24, 1996
 - “Avenant à la Convention entre le Gouvernement du Japon et le Gouvernement de la République française
  en vue d’éviter les doubles impositions et de prévenir l’évasion et la fraude fiscales en matière d’impôts sur
  le revenu”
  Date of signature: January 11, 2007
  Date of entry into force: December 1, 2007

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 12(1) and (2) (Provisions regarding an agent that is deemed to constitute a permeant establishment)
 - 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)
 - 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(11) (Provisions that change the time period before a mutual agreement procedure case becomes
  eligible for arbitration)
 - 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(2) (Provisions regarding the arbitration process in which the arbitration panel shall make its own
  decision on the issues submitted to arbitration based on information provided by the competent authorities)
 - 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 France:
  (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, 2019; 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 July 1, 2019.
 (b) Notwithstanding (a), Article 16 (Mutual Agreement Procedure) shall have effect with respect to the
   tax treaty between Japan and France for a case presented to the competent authority of a
   Contracting Jurisdiction on or after January 1, 2019, except for cases that were not eligible to be
   presented as of that date under the tax treaty between Japan and France prior to its modification by
   the MLI, without regard to the taxable period to which the case relates.
 (c) Notwithstanding (a) and (b), 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 January 1, 2019; and
  (ii) with respect to cases presented to the competent authority of a Contracting Jurisdiction prior to
   January 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.