Japan: New tax treaty with Germany (agreement in principle)

Japan: New tax treaty with Germany

The Japanese Ministry of Finance on 16 July 2015 announced that the governments of Japan and Germany reached an “agreement in principle” for a new income tax treaty. The new treaty would replace the existing agreement signed in 1966, and subsequently amended in 1979 and in 1983.

Related content

According to a press release, the new tax treaty would provide for:

  • Reduced rates of tax withheld at source on investment income (dividends, interest, and royalties)
  • An update of the treaty provision concerning the taxation of business profits
  • Introduction of an arbitration system for the mutual agreement procedure and an article concerning assistance in the collection of taxes

It is expected that the treaty will be signed after Japan and Germany each complete certain domestic procedures, and at that time, details of the amendment will be clarified.

Read a July 2015 report [PDF 132 KB] prepared by the KPMG member firm in Japan: New Japan-Germany Tax Agreement-Agreement in Principle

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.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform