Entry into Force of the Japan-Brunei Taxes Agreement

November 19, 2009
Japanese

The exchange of diplomatic notes for the entry into force of the Agreement between Japan and Brunei Darussalam for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (signed on January 20, 2009) took place in Bandar Seri Begawan, the capital city of Brunei, on November 19 (Thu) (same day, local time).
The Agreement will enter into force on December 19 (Sat) and will be applied in Japan as follows:

(1) With respect to taxes withheld at source, for amounts taxable on or after January 1, 2010.

(2) With respect to taxes on income which are not withheld at source, as regards income for any taxable year beginning on or after January 1, 2010.

(3) With respect to other taxes, as regards taxes for any taxable year beginning on or after January 1, 2010.

This Agreement is similar to other Tax Conventions/Agreements that Japan has entered into with other countries and aims to avoid international double taxation that accompanies activities including economic exchange and people-to-people exchange, and will adjust taxation rights between Japan and Brunei. Reflecting the developing economic relations between Japan and Brunei, the Agreement will promote proactive mutual investment between the two countries by formulating a tax rate limit on the withholding taxes imposed on dividends, interest, and royalties (copyrights, patents, etc.) in the country of origin. By the conclusion of this Agreement, it is expected that economic relations between Japan and Brunei will become even stronger.

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