Japan and Qatar agree in principle to tax treaty

Japan and Qatar have agreed in principle to the terms of a tax treaty, the Japanese government announced on December 17.

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 received by the government is zero and is 10 percent in other cases. Source country taxation on royalties is set at a 5 percent rate.

The draft agreement also provides for exchange of information regarding tax matters between the tax authorities in accordance with international standards, and it provides for a framework for mutual agreement for dispute resolution.

See:

• Ministry of Finance Japan press release