Agreement in Principle on the Tax Agreement centered on the Exchange of Information between the Government of Japan and the Government of The Bahamas

November 8, 2010
Japanese

The Government of Japan and the Government of The Bahamas, as the result of the intergovernmental negotiation, have agreed in principle on an Agreement for the exchange of information on taxes and the allocation of rights of taxation with respect to income of individuals.
The Government of Japan welcomes this Agreement which enables both tax authorities to carry out the effective exchange of information regarding tax matters in accordance with the international standard, and demonstrates The Bahamas’ commitments to cooperate in preventing international fiscal evasion and tax abuse, the importance of which has been reiterated in a series of international conferences.
It is expected that the active efforts by both Governments to enhance transparency and to ensure the effectiveness of the exchange of information, in accordance with the international standard, will contribute to the prevention of international tax evasion and tax abuse.
This Agreement includes provisions aimed at exempting tax at source for certain income of individuals such as pension income, so that the exchange of people between Japan and The Bahamas is promoted.
After the respective Governments have completed their domestic procedures, the text of the Agreement will be authenticated by signature. This Agreement will enter into force, after the completion of the domestic procedures for the conclusion of the Agreement (in the case of Japan, approval by the Diet will be necessary).

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