Press Releases

Signing of Protocol Amending Tax Convention between Japan and Switzerland

July 16, 2021
  1. On July 16, “Protocol Amending the Convention between Japan and Switzerland for the Avoidance of Double Taxation with respect to Taxes on Income” (hereinafter referred to as this Protocol) was signed in Bern, Swiss Confederation by H.E. Mr. Shiraishi Kojiro, Ambassador of Japan to the Swiss Confederation and H.E. Mr. Stefan Flückiger, Ambassador, Deputy State Secretary for International Finance.

  2. This Protocol amends part of the existing Convention, which entered into force in 1971 and was partly amended in 2011 (hereinafter the amended Convention is referred to as “the Convention”), in particular, by revising the taxation on business profits, expanding the extent of reduction of taxation on investment income, amending measures for prevention of abuse of the Convention and introducing arbitration proceedings in mutual agreement procedures. It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Protocol promotes further mutual investments and economic exchanges between the two countries.
[Reference 1] Next Steps

After the completion of the domestic procedures in each of the two countries (in Japan, approval by the Diet is necessary), each of the two countries shall send through diplomatic channels to the other country the notification confirming the completion of its internal procedures. This Protocol will enter into force on the thirtieth day after the date of receipt of the latter notification and will have effect:

  • (a) in Japan:
  • (i) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after January 1 in the calendar year next following that in which this Protocol enters into force; and
  • (ii) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1 in the calendar year next following that in which this Protocol enters into force; and
  • (b) in the Swiss Confederation:
  • (i) with respect to taxes withheld at source, on amounts paid or credited on or after January 1 in the calendar year next following that in which this Protocol enters into force; and
  • (ii) with respect to other taxes, for taxable years beginning on or after January 1 in the calendar year next following that in which this Protocol enters into force.

The provisions of paragraph 1 of Article 25 of the Convention (Mutual Agreement Procedure), as amended by this Protocol, will have effect from the date of entry into force of this Protocol without regard to the date on which the taxes are levied or the taxable year to which the taxes relate.
The provisions concerning the arbitration proceedings will have effect from the date of entry into force of this Protocol with respect to:

  • (a) cases that are under consideration by the competent authorities of the Contracting States on the date on which this Protocol enters into force. For such cases, no unresolved issues arising therefrom will be submitted to arbitration earlier than three years after the date on which this Protocol enters into force; and
  • (b) cases that come under consideration by the competent authorities of the Contracting States after the date on which this Protocol enters into force.
[Reference 2] Texts and Key Points of the Protocol

Back to Press Releases