Diplomatic Notes Exchanged concerning Arbitration Provisions of Japan-Denmark Tax Convention
On November 5, the exchange of diplomatic notes concerning paragraph 5 of Article 24 of the “Convention between Japan and the Kingdom of Denmark for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (PDF)” which entered into force in December 27, 2018 (hereinafter referred to as “the Convention”), took place in Copenhagen, Denmark.
- Paragraph 5 of Article 24 of the Convention provides for arbitration proceedings in which, where taxation not in accordance with the provisions of the Convention has not been resolved through the consultation between the tax authorities of the two countries within two years, the unresolved issue will be resolved pursuant to a decision of an arbitration panel composed of third parties.
- Through the exchange of the notes, both Governments agreed that paragraph 5 of Article 24 of the Convention shall have effect:
- (1) with respect to cases presented pursuant to paragraph 1 of that Article (Mutual Agreement Procedure) on or after November 5, 2021; and
- (2) with respect to cases presented pursuant to paragraph 1 of that Article (Mutual Agreement Procedure) before November 5, 2021. In this case, no unresolved issues of such case shall be submitted to arbitration before two years have elapsed from November 5, 2021.