Entry into force of the new Tax Convention between Japan and Austria

September 28, 2018
Japanese

  1. 1. On September 27, the exchange of diplomatic notes for the entry into force of the Convention between Japan and the Republic of Austria for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (signed on January 30, 2017) took place in Vienna, Austria.

    2. The Convention, therefore, will enter into force on October 27, 2018, on the thirtieth day after the date of exchange of diplomatic notes and will have effect:

    • (a) with respect to taxes levied on the basis of a taxable year, for taxes of any taxable years beginning on or after January 1, 2019; and
    • (b) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1, 2019.

    3. The provisions concerning the assistance in the collection of taxes will have effect from October 27, 2018, the date of entry into force of this Convention, without regard to the date on which the taxes are levied or the taxable year to which the taxes relate.

    4. The new Convention will replace the Convention between Japan and the Republic of Austria for the Avoidance of Double Taxation with respect to Taxes on Income, which entered into force in 1963. It expands the extent of reduction of taxation on investment income by the source country and introduces arbitration proceedings to the mutual agreement procedure, with a view to further promoting investment and economic exchanges between the two countries.