Location : HOME > Tax Policy > Tax Conventions > Press Releases on Tax Conventions > Key points of the Convention on Mutual Administrative Assistance in Tax Matters

Key points of the Convention on Mutual Administrative Assistance in Tax Matters

[Provisional translation]

  1. The Convention on Mutual Administrative Assistance in Tax Matters is a multilateral convention and aims to have parties offer the following mutual administrative assistance in tax matters. The conclusion of this Convention enables parties to properly deal with international tax evasion and tax avoidance.
    • (i) Exchange of information:
      Parties can mutually exchange information regarding tax matters.

    • (ii) Assistance in recovery:
      When assets of a delinquent taxpayer exist in another Party, the relevant Party may request the first-mentioned Party to recover the tax claims in question.

    • (iii) Service of documents:
      When the addressee of any documents regarding tax matters is in another Party, the relevant Party may request the first-mentioned Party to send the documents to the addressee.

  2.  

  3. The Amending Protocol partially amends the Convention. Major amendments are as follows.
    • • Making the provisions of the Convention concerning exchange of information in accordance with international standards (such as providing for the exchange of information concerning bank secrecy)

    • • Enabling any country that is not a member of the Council of Europe or of the Organisation for Economic Co-operation and Development (OECD) to participate the Convention

  4.  

  5. For Japan, this Convention shall apply to the following taxes (in the case of assistance in recovery, the taxes referred to in (i), (ii) and (iv)):
    • (i) the income tax, the corporation tax, the special income tax for reconstruction and the special corporation tax for reconstruction;

    • (ii) the inheritance tax and the gift tax;

    • (iii) the land value tax;

    • (iv) the consumption tax;

    • (v) the liquor tax, the tobacco tax, the special tobacco tax, the gasoline tax, the local gasoline tax, the liquefied petroleum gas tax, the aviation fuel tax and the petroleum and coal tax;

    • (vi) the motor vehicle tonnage tax; and

    • (vii) the registration and license tax, the promotion of power-resources development tax, the stamp tax and the local special corporation surtax.

  6.  

  7. As of June 18, 2013, this Convention has entered or will enter into force for 29 countries (including U.S., U.K., France, Australia, Korea, etc.) among 55 countries that have signed it.