Entry into Force of the Convention between Japan and the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

November 25, 2014
Japanese

  1. 1. An exchange of diplomatic Notes for the entry into force of “The Convention between Japan and the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” (signed on May 2, 2013) took place in Abu Dhabi (the United Arab Emirates) on Monday, November 24, 2014.

    2. Therefore, the Convention will enter into force on December 24, 2014, and will be applicable:

    (1) With respect to taxes withheld at source, for amounts taxable on or after January 1, 2015;

    (2) With respect to taxes on income which are not withheld at source, as regards income for any taxable/fiscal year beginning on or after January 1, 2015 and;

    (3) With respect to other taxes, as regards taxes for any taxable/fiscal year beginning on or after January 1, 2015.

    3. Taxes on income from the international transportation business will be exempted in the source country under the Convention. Therefore, on the same day(November 24(Mon)), the two governments signed the Exchange Notes regarding the termination of the agreement constituted by the Note exchanged between the two governments dated 27 June 2004 concerning the avoidance of double taxation on income in respect of the operation of ships or aircraft in international traffic.

    4. This Convention adjusts the taxation rights between Japan and the United Arab Emirates to avoid international double taxation arising from economic and human exchanges. Reflecting the strengthened economic relations between Japan and the United Arab Emirates and to promote mutual investments, this Convention sets the limit of withholding tax rates imposed by the source state on dividends, interest and royalties.

    5. It is expected that this Convention will further strengthen the economic relations and human exchanges between Japan and the United Arab Emirates, and contribute to the prevention of fiscal evasion.


(* The foregoing is a provisional translation. The date indicated above denotes the date of issue of the original press release in Japanese.)