Article 1 - Persons covered - Japan

JAPAN SYNTHESISED TEXT OF THE MLI AND THE CONVENTION BETWEEN THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME This document presents the synthesised text for the application of the Convention between the Government of Japan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed on March 7, 1989, as amended by the Protocol signed on February 24, 2006 and the Protocol signed on December 11, 2015 (hereinafter referred to as the Convention ), as modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by Japan and India on June 7, 2017 (hereinafter referred to as the MLI ). This document was prepared on the basis of the reservations and notifications submitted to the Depositary (the Secretary-General of the Organisation for Economic Co-operation and Development) by Japan on September 26, 2018 and by India on June 25, 2019 respectively. The sole purpose of this document is to facilitate the understanding of the application of the MLI to the Convention and the document does not constitute a source of law. The authentic texts of the Convention and the MLI are the only legal texts applicable. The provisions of the MLI that are applicable with respect to the provisions of the Convention are included in boxes throughout this document in the context of the relevant provisions of the Convention. In this document, changes to the text of the provisions of the MLI have been made to conform the terminology used in the MLI to the terminology used in the Convention (such as changes from Covered Tax Agreement to Convention and changes from Contracting Jurisdiction to Contracting State ). Similarly, changes have been made to parts of provisions of the MLI that describe existing provisions of the Convention by replacing such descriptive language with the article and paragraph numbers or language of the existing provisions. These changes are intended to increase the readability of the document and are not intended to change the substance of the provisions of the MLI. Unless the context otherwise requires, references made to the provisions of the Convention will be understood as referring to the provisions of the Convention as modified by the provisions of the MLI. Entry into force and entry into effect of the MLI The MLI enters into force for Japan on January 1, 2019 and for India on October 1, 2019 and has effect as follows: The provisions of the MLI shall have effect in each Contracting State with respect to the Convention: (a) in Japan: (i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after January 1, 2020; and (ii) with respect to all other taxes levied by Japan, for taxes levied with respect to taxable periods beginning on or after April 1, 2020; and (b) in India: (i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after April 1, 2020; and (ii) with respect to all other taxes levied by India, for taxes levied with respect to taxable periods beginning on or after April 1, 2020. Note that the application of consolidated parts of the texts of the Convention and its amending Protocols contained in this document is subject to the provisions regarding entry into effect provided for in the amending Protocols. CONVENTION BETWEEN THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of Japan and the Government of the Republic of India, Desiring to conclude a new Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, The following preamble text described in paragraph 1 of Article 6 of the MLI is included in the preamble of the Convention: Article 6 Purpose of a Covered Tax Agreement Intending to eliminate double taxation with respect to the taxes covered by the Convention without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in the Convention for the indirect benefit of residents of third jurisdictions), Have agreed as follows: ARTICLE 1 This Convention shall apply to persons who are residents of one or both of the Contracting States.