Japan–Uruguay tax treaty enters into force July 23

The tax treaty signed by the governments of Japan and Uruguay on September 13, 2019, will enter into force on July 23, according to a June 24 Japan Ministry of Finance notice.

Among other provisions, the treaty sets maximum rates for taxation of investment income in the source country. The maximum rate for dividends, interest, and royalties is generally set at 10%. In the case of dividends, the maximum rate is lowered to 5% in the case of certain companies holding at least 10% of shares for 183 days.

The treaty will generally apply for tax years or taxes levied beginning on or after January 1, 2022.