Notes exchanged with Luxembourg concerning treatment of SPF under the Tax Convention
July 22, 2013
- On July 19, the Government of Japan and the Government of the Grand-Duchy of Luxembourg exchanged notes concerning the Convention between Japan and the Grand-Duchy of Luxembourg for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and/or to a certain other tax, signed in 1992, as amended by the Protocol signed in 2010 (hereinafter referred to as "the Convention") at Luxembourg.
By the exchange of the notes, the both Governments confirm the following understandings:
(1) With reference to Article 25 of the Convention, the term "such other companies which enjoy a similar special fiscal treatment by virtue of the laws of Luxembourg" includes SPF (société de gestion de patrimoine familial) within the meaning of the Act (loi) dated 11 May, 2007.
(2) With reference to Article 28 of the Convention, the provisions of Article 25 of the Convention shall not be construed as preventing the Contracting States from exchanging information relating to SPF (société de gestion de patrimoine familial) within the meaning of the Act (loi) dated 11 May, 2007.
Accordingly, the provisions of the Convention in respect of taxation on income will not apply to SPF.
This agreement between the two Governments which was constituted by the exchange of the notes will enter into force on the thirtieth day after the date of the exchange of the notes and will be applicable:
(1) with respect to taxes withheld at source, for amounts taxable on or after August 18, 2013; and
(2) with respect to taxes on income which are not withheld at source, as regards income for any taxable year beginning on or after August 18, 2013.