On November 8, 2021, the Japanese Ministry of Finance issued a press release announcing that on November 5, the exchange of diplomatic notes between the Government of Japan and the Government of the Republic of Serbia for the entry into force of the “Convention between Japan and the Republic of Serbia for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance” (signed on July 21, 2020) (hereafter: the Convention) took place in Belgrade.

 Consequently, based on Article 30, Paragraph 1 of the Convention (“ENTRY INTO FORCE”), the Convention, will enter into force on the thirtieth day after the date of exchange of diplomatic notes (December 5, 2021).

Based on Article 30, Paragraph 2 of the Convention, the Convention shall have effect:

(1)   in Japan:

(I)   with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after January 1, 2022; and

(II)  with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1, 2022; and

(2)   in Serbia:

       with respect to the taxes on income derived in each fiscal year beginning on or after.

Based on Article 30, Paragraph 3 of the Convention the provisions of Article 26 of the Convention (“EXCHANGE OF INFORMATION”) shall have effect from December 5, 2021 without regard to the date on which the taxes are levied or the taxable year to which the taxes relate.

Click here to be forwarded to the English text of the Convention as available on the website of the Japanese Ministry of Finance.

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