Japan And Russia To Update DTA

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

31 March 2017

Russian and Japanese government representatives met in Tokyo on March 27 to begin negotiations on updating their double tax agreement.

The statement announcing the start of the talks issued by the Japanese Finance Ministry did not provide further detail on what amendments are being considered. However, changes will likely be made in light of the OECD's BEPS project and to bring the agreement into line with the OECD's new automatic tax information exchange standard, the Common Reporting Standard. Withholding tax rates may also be lowered.

Under the 1986 agreement, withholding tax on dividends is generally capped at 15 percent, withholding tax on interest is capped at 10 percent, and royalties are subject to withholding tax at rates of 0 to 10 percent.

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