Japan and the United States have agreed to a new tax treaty that will eliminate double taxation between the two countries by lowering the withholding tax six months earlier than planned, on July 1.
The treaty, officially titled the Convention between the Government of Japan and the United States of American for the Avoidance of Double Taxation and the Prevention of fiscal evasion with respect to Taxes on Income, was originally signed on November 7.
Because the new treaty was enacted before March 30, the new taxation on withholding taxes imposed on dividends, interest and royalties paid between the two countries will be reduced from July 1, six months ahead of schedule.