# The Double Taxation Relief and International Tax Enforcement (Japan) Order 2014, Note: Explanatory note


(This note is not part of the Order)
The Schedule to this Order contains arrangements comprising a Protocol and an Exchange of Letters (“the Arrangements”) which amend the existing arrangements (the “2006 Arrangements”) between the United Kingdom of Great Britain and Northern Ireland and Japan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains. The 2006 Arrangements are scheduled to the Double Taxation Relief (Taxes on Income) (Japan) Order 2006 (S.I. 2006/1924). This Order brings the Arrangements into effect.
The 2006 Arrangements aim to eliminate the double taxation of income and gains arising in one country and paid to residents of the other country. This is done by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. There are also specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement. The Arrangements continue this approach.
The Arrangements introduce two new Japanese reconstruction taxes and an article on assistance in collection. The provisions in the 2006 Arrangements relating to associated enterprises, business profits, dividends, interest, capital gains, limitation of benefits, elimination of double taxation, mutual assistance and exchange of information articles are updated.
Article 2 makes a declaration as to the effect and content of the Arrangements.
The Arrangements will enter into force on the thirtieth day after the date of the later of the notifications by each country of the completion of its legislative procedures.
They will take effect as follows:
(a) in the United Kingdom:
(i) with respect to taxes withheld at source, to income derived on or after 1 January in the calendar year next following that in which the Arrangements enter into force;
(ii) with respect to income tax and capital gains tax not withheld at source, for any year of assessment beginning on or after 6 April in the calendar year next following that in which the Arrangements enter into force; and
(iii) with respect to corporation tax, for any financial year beginning on or after 1 April in the calendar year next following that in which the Arrangements enter into force.
(b) in Japan:
(i) with respect to taxes withheld at source, for amounts taxable on or after 1 January in the calendar year next following that in which the Arrangements enter into force; and
(ii) with respect to taxes on income which are not withheld at source, as regards income for any taxable year beginning on or after 1 January in the calendar year next following that in which the Arrangements enter into force.
An exception to this is the amendments made by Article 2 of the Protocol, which will take effect on a later date, as agreed by an exchange of diplomatic notes.
The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.
A Tax Information and Impact Note has not been produced for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.

---
Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116289/note (the official version)
Page: https://openlegislation.uk/draft-double-taxation-relief-and-international-tax-enforcement-japan-order-2014/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.