Protocol Amending Tax Information Exchange Agreement with the Commonwealth of The Bahamas was Signed
1. On February 10 (on February 9 in local time), the Protocol Amending the Agreement between the Government of Japan and The Government of the Commonwealth of The Bahamas 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 (PDF) was signed in Nassau between H.E. Mr. Masanori Nakano, Japanese Ambassador to the Commonwealth of The Bahamas and The Honourable Michael B. Halkitis, Minister of State in the Ministry of Finance, for the Commonwealth of The Bahamas.
2. This Protocol amends the current Agreement, which entered into force in 2011, and introduces the article concerning automatic exchange of information which is necessary for the exchange of financial account information based on the international standards formulated by the Organisation for Economic Co-operation and Development (OECD), and is expected to contribute to the prevention of international tax evasion and tax abuse, the importance of which has been recognised at international conferences.
(Reference 1) Next Steps
After the approval in accordance with legal procedures of each of the Contracting Parties (in case of Japan, approval by the Diet will be necessary), each of the Contracting Parties will notify the other of the completion of its respective procedures. The Protocol will enter into force on the thirtieth day after the date of exchange of diplomatic notes indicating such approval.
(Reference 2) Application of the Article concerning Automatic Exchange of Information
The new article concerning Automatic Exchange of Information shall be applicable:
(1) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after 1 January 2017; and
(2) with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after 1 January 2017.