Entry into Force of the Tax Agreement with Jersey
- On July 31, an exchange of notes for entry into force of the “Agreement between the Government of Japan and the Government of Jersey for the Exchange of Information for the Purpose of the Prevention of Fiscal Evasion and the Avoidance of Double Taxation with respect to Taxes on Income of Individuals” (signed on December 2, 2011) took place in St Helier, Jersey.
Therefore, this Agreement will enter into force on August 30 this year and will apply to taxes levied on and after August 30 this year in both parties.
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, for income for any taxable year beginning on or after January 1, 2014.
- It is expected that the entry into force of the Agreement further strengthen the human exchanges between Japan and Jersey, and contribute to the prevention of fiscal evasion.