A new tax convention between Belgium and Japan enters into effect on Saturday, the Embassy of Japan announced on Friday. The new agreement, signed on 12 October 2016, replaces an earlier convention that was in effect since 1970. It seeks to eliminate double taxation with respect to taxes on income and prevention of tax evasion and avoidance.
It extends the scope of the reduction of the tax on investment earnings (dividends, interest, royalties) of the country of origin by reducing the maximum tax rates and easing exemption conditions, thus reducing the tax burden of companies established in one country or the other, the embassy explained.
The convention applies to businesses from one country that are already established in the other, as well as future investors.
The new measures should make each country more attractive for international investment by Belgian and Japanese companies, the Embassy added.