Japan and Spain have agreed in principle to the text of a new tax treaty.
The new tax treaty will replace the existing treaty between both countries, which entered into force in 1974.
The new tax treaty will be signed after the necessary internal procedures have been completed by the two governments. Thereafter, the treaty will enter into force after the completion of the approval process in both countries (in the case of Japan, approval by the Diet is necessary).
Japan’s Finance Ministry said: “The new [treaty] will reinforce or introduce provisions for clarifying the scope of taxation in the two countries, eliminating international double taxation, and preventing tax evasion and avoidance and is expected to promote further mutual investments and economic exchanges between the two countries.”