Japan Plans To Update Tax Agreements With Asian Neighbours

by Mary Swire, Tax-News.com, Hong Kong

13 May 2004

The Japanese government hopes to revise the bilateral tax agreements that it holds with several of its neighbours in order to boost trade and investment in the region, it emerged this week.

According to an AFX news report, an unnamed Finance Ministry official explained recently that in the view of the Japanese authorities, many of the treaties which have been negotiated between Japan and its regional counterparts are outdated, and do not accurately reflect the needs of Japanese firms doing business in Asia.

"By revising the tax pacts, we hope to ease the tax burden on Japanese firms. Although lower tax rates will mean a fall in revenues for host Asian countries, we hope to persuade them it will spur trade and investment in the long run," the official told the media.

He reportedly went on to add that Finance Minister Sadakazu Tanigaki is expected to present the proposals at a meeting of the ASEAN-plus-three nations on Saturday, which will be attended by representatives from China, Japan, South Korea, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

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