Agreement in principle on the Tax Convention between the Government of Japan and the Government of the Republic of Latvia
1. The representatives of the Government of Japan and the Government of the Republic of Latvia have agreed in principle on the Convention between Japan and the Republic of Latvia for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance.
2. The Convention aims to further promote investment and economic exchanges between the two countries by clarifying taxation on cross-border investment and economic activities between the two countries and adjusting international double taxation as well as introducing mutual agreement procedures (including arbitration proceedings) for the tax authorities to resolve disputes on tax matters. The Convention also provides for effective exchange of information in accordance with the international standards and the mutual assistance in the collection of tax, which are expected to contribute to the prevention of international avoidance of taxation and collection.
3. The Convention will be signed after the final text has been fixed and the necessary internal procedures have been completed by each of the two Governments. Thereafter, the Convention will enter into force after the completion of the approval process on both countries (in the case of Japan, approval by the Diet).