India and Japan sign protocol to tax treaty, text available

India and Japan have signed a protocol to their 1989 tax treaty, India’s Central Board of Direct Taxes (CBDT) and Japan’s Ministry of Finance announced in separate December 11 releases.

The protocol adds provisions on exchange of information for tax purposes and on assistance in the collection of tax.

Further, it allows information about a country’s residents received from the other country to be shared with law enforcement agents in some cases.

It also adds more financial institutions to the list of of those exempted from withholding tax on interest.

See:

• “Protocol Amending the Convention between the Government of Japan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income”

• Japan release –  Points of Protocol Amending Tax Convention with India

• India release