Japan and Qatar on February 20 signed a tax treaty in Tokyo, the Japanese Ministry of Finance has announced.
Under the agreement, taxation in the source country on dividends is reduced to 5 percent for corporate shareholders that hold at least a 10 percent interest, and is 10 percent in other cases. Taxation in the source country on interest is set at a 10 percent rate, and is set on royalties at a 5 percent rate.
The treaty also provides for exchange of information regarding tax matters between the tax authorities in accordance with international standards, and provides for a framework for mutual agreement for dispute resolution.
Provisions also address corresponding adjustments in transfer pricing cases and the taxation on income derived in respect of a silent partnership contract. The treaty includes provisions to prevent abuse of the treaty.
The agreement will enter into force after necessary domestic procedures in each of the two countries are completed and diplomatic notes indicating such completion are exchanged.
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