Agreement in principle on the new Tax Convention between the Government of Japan and the Government of the Russian Federation
1. The representatives of the Government of Japan and the Government of the Russian Federation have agreed in principle on a new Convention that replaces the current Tax Convention (Convention between the Government of Japan and the Government of the Russian Federation for the Union of Soviet Socialist Republics for the Avoidance of Double Taxation with respect to Taxes on Income) which entered into force in 1986.
2. This new Convention reinforces or introduces provisions for the purposes of clarifying the scope of taxation in the two countries, eliminating international double taxation and preventing tax evasion and avoidance, and is expected to promote further mutual investments and economic exchanges between the two countries.
3. This new Convention will be signed after the necessary internal procedures have been completed by each of the two Governments. Thereafter, the new Convention will enter into force after the completion of the approval process on both countries (in the case of Japan, approval by the Diet is necessary).