Press Release

[Provisional translation]

February 10, 2017
The Ministry of Finance

On February 9(Thursday.), the Government of Japan and the Government of the Commonwealth of The Bahamas signed the Protocol Amending the Agreement between the Government of Japan and the Government of the Commonwealth of The Bahamas for the Exchange of Information for the Purpose of the Prevention of Fiscal Evasion and the Allocation of Rights of Taxation with respect to Income of Individuals in Nassau.

This Protocol amends parts of the current Agreement, which entered into force in 2011, and introduces the article concerning automatic exchange of information which is necessary for the exchange of financial account information based on the international standards formulated by the OECD, and is expected to contribute to the prevention of international tax evasion and tax abuse, the importance of which has been recognised at international conferences.

【Reference 1】 Next Steps

After the approval in accordance with legal procedures of each of the Contracting Parties (in case of Japan, approval by the Diet will be necessary), each of the Contracting Parties will notify the other about the completion of respective procedures. The Protocol will enter into force on the thirtieth day after the date of exchange of diplomatic notes indicating such approval.

【Reference 2】 Application of the Article concerning Automatic Exchange of Information

The new article concerning Automatic Exchange of Information shall be applicable:

(1)  with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after 1 January 2017; and

(2)  with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after 1 January 2017.

【Reference 3】 Texts

• “Protocol Amending the Agreement between the Government of Japan and the Government of the Commonwealth of The Bahamas for the Exchange of Information for the Purpose of the Prevention of Fiscal Evasion and the Allocation of Rights of Taxation with respect to Income of Individuals” (Japanese • English (57KB/71KB))