New Tax Treaty: Japan And USA

Japan and the USA have recently ratified a new tax treaty, which comes into effect from 1st July 2004. This replaces the treaty which has been effective since 1971, and concludes talks that commenced in October 2001.

Except in the case of a significant percentage shareholding, the treaty will have no effect on the taxation of dividend payments made by a Japanese company to a US shareholder, as the effective rate in Japan is already below the rate negotiated in the treaty.

Datavenue maintains a comprehensive international taxation database, covering dividend and interest payments, and is the leading supplier of taxation data to financial markets.

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