Tax Agreement with Qatar will Enter into Force
1. On November 30 (Mon.), an exchange of diplomatic notes for the entry into force of the Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (signed on February 20, 2015) took place in Doha.
2. Therefore, the Agreement will enter into force on December 30, 2015 (the thirtieth day after the date of exchange of diplomatic notes) and will be applicable:
(a) in the case of Japan:
(i) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after 1 January, 2016; and
(ii) with respect to taxes not levied on the basis of a taxable year, for taxes levied on or after 1 January, 2016; and
(b) in the case of the State of Qatar:
(i) with regard to taxes withheld at source, in respect of amounts paid or credited on or after 1 January, 2016; and
(ii) with regard to other taxes, in respect of taxable years beginning on or after 1 January, 2016.
3. With the entry into force of the Agreement, taxes on income from the international transportation business will be exempted in the source country under the Agreement. Therefore, the arrangement made by the “Exchanged Notes between the Government of Japan and the Government of the State of Qatar concerning Mutual Tax Exemption for Income from the International Transportation Business” dated May 21, 2009 will be terminated and ceased to have effect with respect to income or taxes to which the Agreement applies in accordance with paragraph 2, based on the “Exchanged Notes concerning the Agreement between the Government of Japan and the Government of the State of Qatar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” dated February 20, 2015. With the termination of the arrangement, in Japan, the Cabinet Order of the law concerning mutual tax exemption for income from the international transportation business will be amended, and the law concerning mutual tax exemption for income from the international transportation business will not be applied to income derived by a resident of Qatar from the international transportation business.
