Agreement in Principle on the Tax Agreement centered on the Exchange of Information between the Government of Japan and the Government of the Cayman Islands
May 26, 2010
- The Government of Japan and the Government of the Cayman Islands, as the result of the intergovernmental negotiations, have agreed in principle on an Agreement 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.
- The Government of Japan welcomes this agreement in principle which demonstrates the Cayman Islands’ commitments to preventing international fiscal evasion and tax abuse, the importance of which has been reiterated in a series of international conferences, because the Agreement to be concluded provides for the effective exchange of information regarding tax matters in accordance with the international standard.
- The Government of Japan is determined to contribute to the strengthening of the information exchange network aimed at the prevention of international tax evasion and tax abuse by conducting this Agreement as early as possible.
- This Agreement also provides for the exemption of tax at source for certain income of individuals such as pensions, so that exchange of people between Japan and the Cayman Islands is promoted.
- This Agreement will be signed after the work for the finalization of the text and the procedures within the both Governments, and enter into force, after the completion of the domestic procedures for the conclusion of the Agreement (in case of Japan, approval by the Diet will be necessary).