Japan, Austria tax treaty signed

Japan and Austria signed a new tax treaty on January 30 to update their 1963 agreement, Japan’s Ministry of Finance has announced.

The new Japan-Austria tax treaty would reduce withholding taxes on dividends, interest, and royalties and includes a “principal purpose” test to prevent tax treaty abuse.

The treaty also adds a mandatory arbitration clause to handle instances where agreement can not be reached in a cross-border tax dispute within two years.

The treaty is not yet in force.

See:

• Treaty