Government of Japan and Qatar sign avoidance of double taxation agreement

Newsroom24x7 Desk

japan qatar double tax avoidanceTokyo : Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income took shape in form of culmination of agreeance from both sides. Earlier, on November 30, the exchange of diplomatic notes for the entry into force of “Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” took place in Doha in the the State of Qatar.

Thereafter, the Agreement, took its final implementation shape and information from the Japan government confirms that this agreement would enter into force on December 30 this year end. The implication of the aboce said would be applicable to Japan with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after 1 January, 2016; and with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after 1 January, 2016.

For the other party which participated in the agreement, that is Qatar — in the case of the State of Qatar, the implication would be applicable with regard to taxes withheld at source, in respect of amounts paid or credited on or after 1 January, 2016; and with regard to other taxes, in respect of taxable years beginning on or after 1 January, 2016.

With the entry into force of the Agreement, taxes on income from the international transportation business would be exempted in the source country in accordance with the Agreement. Therefore, the arrangement made by the Exchange of Notes between the Government of Japan and the Government of the State of Qatar concerning mutual tax exemption for income from the international transportation business signed on May 21, 2009 would be terminated and ceased to have effect with respect to income or taxes to which the Agreement applies, based on the Exchange of Notes concerning the Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed earlier in February this year.