Tashkent, Uzbekistan (UzDaily.com) -- On 17 September 2020, the procedures for the entry into force of the "Convention between Japan and the Republic of Uzbekistan on Taxation", signed in December 2019 by the Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Uzbekistan EP Mr. Yoshinori Fujiyama and the Minister of Foreign Affairs of the Republic of Uzbekistan EP Mr. Abdulaziz Kamilov, were completed.

In accordance with the Convention, which enters into force on 17 October 2020, double taxation of income earned by Japanese or Uzbek companies and individuals in one of the participating countries will be eliminated.

For example, income earned by a Japanese company in Uzbekistan would be taxed either in Japan, which is the "country of residence", or in Uzbekistan, which is the "country where the income was received" (the country of source of income).

This Convention will apply to the following:

In Japan

A. For taxes levied on a tax period basis: taxes for each tax period beginning from 1 January 2021.

B. For taxes levied on a non-taxable basis: taxes levied from 1 January 2021.

In the Republic of Uzbekistan

A. With regard to withholding taxes: income earned from 1 January 2021

B. For other taxes: taxes levied for each tax period beginning January 1, 2021.

The provisions concerning the exchange of information and mutual assistance in the collection of tax will apply from the date of the tax levied or from the date of entry into force of this Convention, regardless of the tax period.

The entry into force of the "Convention between Japan and the Republic of Uzbekistan on Taxation" will prevent international tax evasion and avoidance by eliminating double taxation in both countries, and will also contribute to the further development of investment and economic exchange.