Deposit of the Instrument of Acceptance of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting

September 27, 2018
Japanese

  1. 1. On September 26 (same day local time), Japan deposited the instrument of acceptance of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Convention to Implement Measures to Prevent BEPS) with the Secretary-General of the Organisation for Economic Co-operation and Development in Paris.

    2. As a result, this Convention will enter into force with respect to Japan on January 1, 2019. The Convention will apply to existing tax agreements between Japan and the Parties to the Convention, with each of which Japan make the same notification to choose each tax agreement to be covered by this Convention.

    3. This Convention sets out the legal framework to ensure swift, coordinated and consistent implementation of the treaty-related BEPS measures. Conclusion of the Convention will enable parties to deal with international tax evasion and avoidance more effectively.

    (Reference) Convention to Implement Measures to Prevent BEPS

    (1) The Convention became open for signature on December 31, 2016, and Japan signed this Convention on June 7, 2017 in Paris. Diet approval for concluding the Convention was obtained on May 18, 2018.

    (2) The Convention entered into force on July 1, 2018 with respect to first 5 jurisdictions, which had deposited the instrument of ratification, acceptance or approval. With respect to each of jurisdictions depositing the instrument of ratification, acceptance or approval thereafter, the Convention will enter into force on the expiry of a specified period after its deposit. As of September 26, 2018, 82 jurisdictions signed and 12 jurisdictions concluded the Convention.