Tax treaty update: White House transmits Japan agreement to Senate

White House transmits Japan agreement to Senate

The White House today announced that a new Protocol to amend the income tax treaty between the United States and Japan has been transmitted to the Senate.

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The Protocol was signed in January 2013 and, once ratified and with its entry into force, would amend the existing United States-Japan income tax treaty (2003) so as to bring that agreement into closer conformity with the current tax treaty policies of both the United States and Japan. 

Other pending treaty agreements

The Protocol with Japan now joins other tax treaties and Protocols that are pending action by the Senate—agreements with Switzerland, Luxembourg, Hungary, Chile, Poland, and Spain, and a Protocol amending the OECD convention on mutual administrative assistance in tax matters.

The Senate Foreign Relations Committee has approved and reported five tax treaties and Protocols (agreements with Switzerland, Luxembourg, Hungary, Chile, and the OECD) for action by the full Senate. Historically, unanimous consent motions are the customary procedure for Senate approval of tax treaties, so any senator may prevent approval by objecting. A two-thirds vote after unlimited debate is otherwise required by the Treaty Clause of the U.S. Constitution for ratification.

In May 2014, Sen. Rand Paul (R-KY) objected to unanimous consent motions concerning Senate approval of the Protocol to amend the income tax treaty with Switzerland.

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