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Press Release

Japanese

October 12, 2016

Ministry of Finance

New Tax Convention with Belgium was Signed

[Provisional translation]

1.  Today, the Government of Japan and the Government of the Kingdom of Belgium signed the Convention between Japan and the Kingdom of Belgium for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance in Tokyo.

2.  This Convention wholly amends the existing Convention, which entered into force in 1970 and was partly amended in 1990 and in 2013, by revising the taxation on business profits, expanding the extent of reduction of taxation on investment income, introducing measures for prevention of abuse of this Convention, arbitration proceedings in mutual agreement procedures and assistance in the collection of tax claims. It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Convention promotes further mutual investments and economic exchanges between the two countries.


【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), each of the two countries shall send through diplomatic channels to the other country the notification confirming the completion of its internal procedures. This Convention will enter into force on the thirtieth day after the date of receipt of the latter notification and will be applicable:

(a)  in the case of Japan:

(i)  with respect to taxes levied on the basis of a taxable period, for taxes for any taxable period beginning on or after January 1 in the calendar year next following that in which the Convention enters into force; and

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

(b)  in the case of Belgium:

(i)  with respect to taxes due at source, on income credited or payable on or after January 1 in the calendar year next following that in which the Convention entered into force;

(ii)  with respect to other taxes on income, on income of taxable periods beginning on or after January 1 in the calendar year next following that in which the Convention entered into force; and

(iii)  with respect to other taxes, on taxes due in respect of taxable events taking place on or after January 1 in the calendar year next following that in which the Convention entered into force.


【Reference 2】 Texts and Key Points of the Convention


Contact

Ministry of Finance : Tel 03(3581)4111

 International Tax Policy Division, Tax Bureau (ext. 5335 or 2457)