Protocol double tax agreement tax between Japan and India came into force on 29 September.
The Protocol updates the provisions on the exchange of tax information existing contract. It also amends the list of state financial institutions or central banks eligible for exemption from income tax at source of interest payments presentation in Article 11.
The revised pact is active in Japan since 1 January 2017, and in India from April 1, 2017.
The new double tax agreement with Germany Japan also entered into force on 28 September. The new contract provides for more favorable conditions for companies engaged in trade or investment between the two territories. Agreement again provides tax exemption at source for interest and royalties.
Income from dividends will be removed if the company which receives income has a 25 percent share in dividends at least 18 months. Dividend income might otherwise qualify for a reduced rate of five per cent if the company which receives the dividends are held at least five percent of the company paying the dividends for at least six months. Otherwise, it will apply the rate of 15 percent.
For updated provisions on the exchange of tax information, which will operate from 28 October 2016, all other provisions will come into force on 1 January 2017.