Talks between the Japanese Ministry of Finance and British government officials on revisions to the 35 year old Double Taxation Treaty between the two countries began as expected on Tuesday this week. The treaty between the two nations was first signed in December 1970, and last revisited in 1980.
According to a spokesman for Mizuho Corporate Bank in Tokyo, changes to administrative procedures and documentation are almost certain to stem from the negotiations. “A major goal of this update is to relax or remove the taxes paid by subsidiaries to their host countries on income such as dividends, interest and patent fees,” he says. “If the tax treaty is updated by the relaxation or removal of taxes paid on income such as dividends and interest to their host countries, this could further promote cross-border trades.”
The talks are scheduled to end tomorrow. The United Kingdom is the second European country to discuss tax treaty revisions with Japan this year, after talks began with the Dutch government in June. The Japanese are also reported to be planning talks with several other nations in Europe and Asia regarding double taxation agreements.