Press Releases

1. The representatives of the Government of Japan and the Government of the Republic of Austria have agreed in principle on the New Tax Convention between Japan and the Republic of Austria for the Avoidance of Double Taxation with respect to Taxes on Income, which will replace the current Convention that entered into force in 1963.

2. The new Convention wholly amends the contents of the current Convention by expanding the extent of reduction of taxation on investment income (dividends, interest and royalties) and introducing arbitration proceedings to the mutual agreement procedure in view of resolving taxation not in accordance with the provisions of the Convention, with a view to further promoting investment and economic exchanges between the two countries. It also expands the cooperation between the tax authorities of the two countries by introducing assistance in the collection of taxes.

3. The new 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 in both countries (in the case of Japan, approval by the Diet).