Japan and Lavia sign first tax treaty, text available

The governments of Japan and Latvia today signed a their first tax treaty, Japan’s Ministry of Finance has announced.

The agreement, signed in Tokyo, would exempt royalties from withholding tax and would lower withholding tax on interest and dividends beneficially owned by a person other than an individual to 10 percent. The agreement includes a principal purpose test to prevent tax treaty abuse.

The treaty provides for the resolution of tax disputes by mutual agreement, or by arbitration if the dispute remains unresolved for two years,

The treaty is not yet in force; each country must take steps to ratify it.

See:

• Treaty