Entry into force of the new Tax Convention between Japan and the Kingdom of Belgium

December 21, 2018
Japanese

  1. 1. On December 20, Japan received from Belgium the notification confirming that its internal procedures necessary for the entry into force of the Convention between Japan and the Kingdom of Belgium for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (PDF)Open a New Window (signed on October 12, 2016) were completed. Thus, all the necessary procedures for the entry into force of the Convention have been completed.

    2. The Convention, therefore, will enter into force on January 19, 2019, on the thirtieth day after the date of receipt of the latter notification and will have effect:

    (a) in case of Japan:

    (i) with respect to taxes levied on the basis of a taxable period, for taxes of any taxable period beginning on or after January 1, 2020; and
    (ii) with respect to taxes levied not on the basis of a taxable period, for taxes levied on or after January 1, 2020.

    (b) in case of Belgium:

    (i) with respect to taxes due at source, on income credited or payable on or after January 1, 2020;
    (ii) with respect to other taxes on income, on income of taxable periods beginning on or after January 1, 2020; and
    (iii) with respect to other taxes, on taxes due in respect of taxable events taking place on or after January 1, 2020.

    3. The new Convention will replace the Convention between Japan and the Kingdom of Belgium for the Avoidance of Double Taxation with respect to Taxes on Income, which entered into force in 1970. 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.