Entry into force of the Tax Convention between Japan and Ecuador
1. On November 28, the exchange of diplomatic notes for the entry into force of the Convention between Japan and the Republic of Ecuador for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (PDF) (signed on January 15, 2019) took place in Quito, Ecuador.
2. The Convention, therefore, will enter into force on December 28, 2019, on the thirtieth day after the date of exchange of diplomatic notes and will have effect:
(1) in Japan:
(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, 2020; and
(b) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1, 2020; and
(2) in Ecuador:
with respect to taxes on income obtained and amounts to be paid, credited to account, made available or recorded as an expense, on or after January 1, 2020.
3. The provisions concerning the exchange of information and the assistance in the collection of taxes will have effect from the following dates without regard to the date on which the taxes are levied or the taxable year to which the taxes relate:
(1) with respect to the provisions of the exchange of information, December 28, 2019; and
(2) with respect to the provisions of the assistance in the collection of taxes, the date to be agreed between the Governments of the two countries through an exchange of diplomatic notes.
4. It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Convention promotes further mutual investments and economic exchanges between the two countries.