Japan and Germany agree to terms of new tax treaty

Japan and Germany have reached an agreement in principle on a new tax treaty, Japan’s Ministry of Finance announced July 16.

The new treaty will include an arbitration clause; reduce tax withheld at source on dividends, interest, and royalties; and provide an updated article on taxation of business profits, the Ministry of Finance said.

No information is provided, however, on the content of the arbitration and business profits clauses or the withholding tax rates.

The agreement will replace a tax treaty signed by the countries in 1966, which was amended in 1979 and 1983.

See:

• Release