Russia and Japan signed the Convention on the Avoidance of Double Taxation

In Vladivostok, representatives of both countries signed the Convention on the Elimination of Double Taxation on Income and on the Prevention of Evasion of Taxes.

The new document will replace the existing Agreement on the avoidance of double taxation between the USSR and Japan.

Prime Minister Dmitry Medvedev on August 24 signed an order, according to which the Russian side approves the provisions of the convention.

The Convention shall in particular apply to:

• taxes levied on the total amount of income or separate elements of income of persons recognized as residents of one or both of the contracting states;

• taxation of profits from entrepreneurial activities, incl. on the taxation of income from property, profits from sea and air transportation, dividends, income from copyright and licenses, income of individuals;

• the Convention also regulates the exchange of information between authorized bodies of both countries.

The signed document now has a procedure for ratification, as it contains norms and rules different from those in Russian law.

A source: http://www.consultant.ru/cons/cgi/online.cgi?req=doc;base=EXP;n=698719#0