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Press Release

Japanese

February 20, 2015

Ministry of Finance

Tax Agreement with Qatar was Signed

[Provisional translation]

1.  Today, the Government of Japan and the Government of the State of Qatar signed the Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income in Tokyo. This Agreement is the first tax agreement concluded between Japan and the State of Qatar, based on the recognition of an increasingly close economic relationship between the two countries.

2.  For the purpose of adjusting international double taxation, the Agreement clarifies the taxable scope in the two countries. In addition, the conclusion of the Agreement will enable the tax authorities of the two countries to consult together on taxation issues arising in the two countries and to exchange information regarding tax matters effectively. It is expected to promote further mutual investments and economic exchanges between the two countries while avoiding double taxation and preventing international tax evasion and tax avoidance.

    3.  With the entry into force of the Agreement, taxes on income from the international transportation business will be exempted in the source country under the Agreement. Therefore, today in Tokyo, the two governments exchanged notes regarding the termination of the arrangement made by the Exchanged Notes between the Government of Japan and the Government of the State of Qatar concerning Mutual Tax Exemption for Income from the International Transportation Business dated May 21, 2009. Accordingly, the arrangement will terminate and cease to have effect with respect to income or taxes to which the Agreement shall have effect.

    【Reference 1】 Next Steps

    After the completion of the necessary domestic procedures in each of the two countries (in the case of Japan, approval by the Diet is necessary), diplomatic notes indicating such completion are to be exchanged. The Agreement will enter into force on the thirtieth day after the date of exchange of diplomatic notes 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 immediately following that in which the Agreement enters into force; and

    (ii)   with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after 1 January in the calendar year immediately following that in which the Agreement enters into force; and

    (b)   in the case of the State of Qatar:

    (i)   with regard to taxes withheld at source, in respect of amounts paid or credited on or after 1 January of the calendar year immediately following the year in which the Agreement enters into force; and

    (ii)   with regard to other taxes, in respect of taxable years beginning on or after 1 January of the calendar year immediately following the year in which the Agreement enters into force.

    【Reference 2】 Texts and Key Points of the Agreement

    • “Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” (JapaneseEnglish (229KB / 79KB)PDF)
    • “Exchanged Notes concerning the Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” (JapaneseEnglish (68KB / 24KB)PDF)
    • Key Points of Tax Agreement with Qatar