Japan, Uzbekistan tax treaty signed

Japan’s Ministry of Finance has announced that the governments of Japan and Uzbekistan signed a new tax treaty on December 19.

The treaty lowers withholding taxes on dividends to 5 percent if paid to certain related parties and to 10 percent in other cases.

The new treaty would also exempt from withholding tax interest received by a government and reduce withholding taxes on interest to 5 percent in other cases. Royalties on copyrights would be exempt from withholding tax and other forms of royalty payments would be subject to 5 percent withholding.

The new Japan-Uzbekistan tax treaty contains modern provisions on the prevention of tax treaty abuse. It would also provide for a mutual agreement procedure to resolve tax treaty disputes and provide for the exchange of information and for assistance in the collection of tax.

The treaty is not yet in force.