2019 Japan-Peru Income Tax Treaty Available

<p>Tax Analysts has obtained the English text of the Japan-Peru income tax treaty signed November 18 in Lima.</p> <p>Under the treaty, dividends and interest are taxable at a maximum rate of 10 percent, while royalties are subject to a 15 percent rate. Both countries generally apply the credit method to eliminate double taxation.</p> <p>This is the first tax treaty between the two countries. It will enter into force on the 30th day following the exchange of ratification instruments and will generally apply from January 1 of the year following entry into force.</p> <p>However, the provisions of article 26 (exchange of information) will apply from the date of entry into force. Additionally, the provisions of article 27 (assistance in the collection of taxes) will apply from the date mutually agreed on by the countries via an exchange of diplomatic notes. The competent authorities will agree on a date once Peru has put in place procedures for implementing article 27 or when an agreement between Peru and a third country that includes similar provisions to that article takes effect.</p>

<p><a href="/lr/resolve/-/2b4r3" title=" ">Japanese text</a>. <a href="/lr/resolve/-/2b4rf" title=" ">Japanese Ministry of Finance release</a>. <a href="/lr/resolve/-/2b4rg" title=" ">Key points of treaty</a>.</p>

<p>January 29, 2021 (exchange of information); January 1, 2022 (withholding and other taxes). Article 27 (assistance in the collection of Taxes) will apply from a date to be agreed through an exchange of diplomatic notes. See Article 31.</p>

<p>Tax Analysts has obtained the English text of the Japan-Peru income tax treaty signed November 18 in Lima. </p>

Tax Analysts has obtained the English text of the Japan-Peru income tax treaty signed November 18 in Lima. Under the treaty, dividends and interest are taxable at a maximum rate of 10 percent, while royalties are subject to a 15 percent rate. Both countries generally apply the credit method to eliminate double taxation. This is the first tax treaty between the two countries. It will enter into force on the 30th day following the exchange of ratification instruments and will generally apply from January 1 of the year following entry into force. However, the provisions of article 26 (exchange of information) will apply from the date of entry into force. Additionally, the provisions of article 27 (assistance in the collection of taxes) will apply from the date mutually agreed on by the countries via an exchange of diplomatic notes. The competent authorities will agree on a date once Peru has put in place procedures for implementing article 27 or when an agreement between Peru and a third country that includes similar provisions to that article takes effect.

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr><th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th><th>Main Country</th><th>Partner Country</th><th>Rate</th><th>Footnote 1</th><th>Footnote 2</th><th>Footnote 3</th><th>Footnote 4</th></tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>10 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>10 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>15 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Japan - Peru: 2019 Income Tax Convention and Final Protocol

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2019 Japan-Peru Income Tax Treaty Available