On October 20, 2016 the Japanese Ministry of Finance issued a press release announcing the Government of Japan and the Government of the Republic of Austria have agreed in principle on a new Convention that replaces the Convention between Japan and the Republic of Austria for the Avoidance of Double Taxation with respect to Taxes on Income which entered into force in 1963.

According to the press release the new Convention wholly amends the contents of the current Convention by expanding the extent of reduction of taxation on investment income (dividends, interest and royalties) and introducing arbitration proceedings to the mutual agreement procedure in view of resolving taxation not in accordance with the provisions of the Convention, with a view to further promoting investment and economic exchanges between the two countries. In the press release it is furthermore stated that the Convention also expands the cooperation between the tax authorities of the two countries by introducing assistance in the collection of taxes.

The new Convention will be signed after the necessary internal procedures have been completed by each of the two Governments. Thereafter, the new Convention will enter into force after the completion of the approval process on both sides.

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