Investing in Japan

Section 3. Taxes in Japan

3.5 Tax treaties

Japan has concluded tax treaties with many countries for the purposes of avoiding double taxation of income internationally and preventing tax evasion.
The provisions of tax treaties supersede those of domestic law. In determining the tax liability in Japan of individuals and corporations domiciled in a country with which Japan has a tax treaty, the location of the source of income deemed taxable income under Japanese law (specifically the provisions concerning where the income upon which taxation is based is generated) may at times be amended to accord with these tax treaties. Provisions have also been established in Japan for reducing the tax on, or exempting from tax, various types of income sourced in Japan.

Table 3-4 Japanese Tax Treaties

Europe (16) Austria Belgium Denmark Finland France Germany Ireland Isle of Man Italy Luxembourg Netherlands Norway Spain Sweden Switzerland U.K.

East Europe / Former Soviet Union (18) Armenia Azerbaijan Belarus Bulgaria Czech Republic Georgia Hungary Kazakhstan Kyrgyz Republic Moldova Poland Romania Russia Slovak Republic Tajikistan Turkmenistan Ukraine Uzbekistan

North America (2) Canada U.S. Latin America (4) Bahamas Bermuda Brazil Mexico East / Southeast Asia (10) Brunei China Hong Kong Indonesia Malaysia Philippines Republic of Korea Singapore Thailand Viet Nam

South Asia (4) Bangladesh India Pakistan Sri Lanka Pacific (3) Australia Fiji New Zealand Middle East (4) Egypt Israel Saudi Arabia Turkey Africa (2) South Africa Zambia

as of October 2011

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