The draft law “On Ratification of the Convention between the Republic of Armenia and Japan for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance” was presented for discussion by Deputy Minister of Finance of Armenia, Arman Poghosyan.
The initiative aims to restore the practice of legal relations excluding double taxation. It sets more favorable tax conditions for residents of both countries than those provided under national legislation, thereby creating a stable and predictable tax environment.
According to the agreement, the right to tax passive income is primarily reserved for the source country of the payment; this agreement is no exception. In some cases, tax rates lower than those stipulated by existing national legislation are envisaged, particularly when certain investment thresholds are surpassed.
The agreement is also expected to establish a stable foundation for mutual cooperation between the tax authorities of the two countries.
The issue has received a positive conclusion from the Standing Committee on Economic Affairs.
