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Application of the MLI to the Tax Treaty between Japan and New Zealand

 The MLI enters into force for Japan on January 1, 2019, and for New Zealand on October 1, 2018.
 Based on the reservations and notifications submitted by Japan on September 26, 2018 and by New Zealand on June 27, 2018, the MLI applies to the tax treaty between Japan and New Zealand as described below.

  1. Tax treaty covered by the MLI
  - “Convention between Japan and New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal
      Evasion with respect to Taxes on Income”
   Date of signature: December 10, 2012
   Date of entry into force: October 25, 2013

  2. Provisions of the MLI applicable to the tax treaty
  - Article 3(1) (Provisions regarding income derived by or through an entity or arrangement that is treated as fiscally
      transparent)
  - Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall be
      treated as a resident of one of the Contracting Jurisdictions for the purposes of 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 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)
  - Article 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length
      principle)

  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 New Zealand:
    (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 New Zealand 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 New Zealand prior to its modification by the MLI, without regard to the taxable
           period to which the case relates.