Entry into Force of the Tax Agreement with Guernsey

July 25, 2013
Japanese

    1. On July 24, mutual notification procedures were completed for entry into force of the "Agreement between the Government of Japan and the Government of Guernsey for the Exchange of Information relating to Tax Matters and the Avoidance of Double Taxation with respect to Taxes on Income of Individuals" (signed on December 6, 2011).
    2. Therefore, this Agreement will enter into force on August 23 this year and will apply to the following in both parties:

      (1) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after August 23, 2013; and

      (2) with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after August 23, 2013.

      However, the provisions concerning the allocation of taxing rights will apply to the following:

      (1) with respect to taxes withheld at source, for amounts taxable on or after January 1, 2014; 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 January 1, 2014.

    3. It is expected that the entry into force of the Agreement further strengthen the human exchanges between Japan and Guernsey, and contribute to the prevention of fiscal evasion.

* The foregoing is a provisional translation. The date indicated above denotes the date of issue of the original press release in Japanese.