January 31, 2017
Ministry of Finance
New Tax Convention with Austria was Signed
[Provisional translation]
1. On January 30 (Mon.), the Government of Japan and the Government of the Republic of Austria signed the Convention between Japan and the Republic of Austria for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance in Vienna.
2. This Convention wholly amends the existing Convention, which entered into force in 1963, by 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, and reinforcing the exchange of information concerning tax matters. 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 approval in accordance with the domestic procedures of the two countries (in the case of Japan, approval by the Diet is necessary), this Convention will enter into force on the thirtieth day after the date of exchange of diplomatic notes indicating such approval and will have effect:
(1) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after January 1 in the calendar year next following that in which the Convention enters into force; and
(2) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1 in the calendar year next following that in which the Convention enters into force.
【Reference 2】 Texts and Key Points of the Convention
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