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.
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.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.