New Double Tax Treaty between Russia and Japan 12.10.2017

New Double Tax Treaty between Russia and Japan

The development of closer relations between Japanese and Russian companies and the result of negotiations between Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe laid the foundations for the signing of a new Double Tax Convention between Russia and Japan.  In recent months more than a hundred different agreements have been signed by the two countries.  This is a clear indication, according to expert commentators, that the business climate between Russia and Japan is improving.

The new Convention creates a framework to ensure companies and individuals will not pay tax on the same income twice.  The Convention also includes provisions implementing the exchange of information between Russian and Japanese authorities in order to detect tax offenses. These arrangements will improve relations between countries and help to avoid tax evasion. 

The Convention between Russia and Japan applies to the taxation of income from entrepreneurial activities, including the taxation of income from property, profits from shipping and air transport, dividends (tax rates of 10% or 5% if the ownership share exceeds 15%), income from copyright licenses and income of individuals. 

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