Double Taxation Relief (Taxes on Income) (Japan) Order 1970
| Jurisdiction | UK Non-devolved |
| Citation | SI 1970/1948 |
| Year | 1970 |
1970 No. 1948
INCOME TAX
The Double Taxation Relief (Taxes on Income) (Japan) Order 197017thDecember 1970
At the Court at Buckingham Palace, the 17th day of December 1970
Present,
The Queen's Most Excellent Majesty in Council
Whereas a draft of this Order was laid before the Commons House of Parliament in accordance with the provisions of section 347(6) of the Income Tax Act 1952(a), and an Address has been presented to Her Majesty by that House praying that an Order may be made in the terms of this Order:
Now, therefore, Her Majesty, in exercise of the powers conferred upon Her by section 347(1) of the said Income Tax Act 1952, as amended by section 39 and section 64 of the Finance Act 1965(b), and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:—
1. This Order may be cited as the Double Taxation Relief (Taxes on Income) (Japan) Order 1970.
2. It is hereby declared—
(a) that the arrangements specified in the Convention set out in Part I of the Schedule to this Order and in the Exchange of Notes constituting an Agreement set out in Part II of that Schedule have been made with the Government of Japan with a view to affording relief from double taxation in relation to income tax, corporation tax, or capital gains tax and taxes of a similar character imposed by the laws of Japan; and
(b) that it is expedient that those arrangements should have effect.
W. G. Agnew.
(a) 15 & 16 Geo. 6 & 1 Eliz. 2. c. 10.
(b) 1965 c. 25.
SCHEDULE
PART I
CONVENTION 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
The United Kingdom of Great Britain and Northern Ireland and Japan;
Desiring to conclude a new Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income;
Have agreed as follows:—
ARTICLE 1
This Convention shall apply to persons who are residents of one or both of the Contracting States.
ARTICLE 2
(1) The taxes which are the subject of this Convention are:
(a) in the United Kingdom of Great Britain and Northern Ireland:
(i) the income tax (including surtax);
(ii) the corporation tax; and
(iii) the capital gains tax;
(b) in Japan:
(i) the income tax;
(ii) the corporation tax; and
(iii) the local inhabitant taxes.
(2) This Convention shall also apply to any identical or substantially similar taxes, whether national or local, which are imposed in either Contracting State after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify to each other any changes which are made in their respective taxation laws.
(3) With respect to enterprises operating ships or aircraft, this Convention shall also apply to the taxes referred to in paragraph (2) of Article 9.
ARTICLE 3
(1) In this Convention, unless the context otherwise requires:
(a) the term "United Kingdom" means Great Britain and Northern Ireland;
(b) the term "Japan" when used in a geographical sense, means the territory in which the laws relating to Japanese tax are in force;
(c) the term "nationals" means:
(i) in relation to the United Kingdom, all citizens of the United Kingdom and Colonies who derive their status as such from their connection with the United Kingdom and all legal persons, partnerships and associations deriving their status as such from the law in force in the United Kingdom;
(ii) in relation to Japan, all individuals possessing the nationality of Japan and all juridical persons created or organised under the laws of Japan and all organisations without juridical personality treated for the purposes of Japanese tax as juridical persons created or organised under the laws of Japan;
(d) the term "United Kingdom tax" means tax imposed in the United Kingdom being tax to which this Convention applies by virtue of paragraph (1) or paragraph (2) of Article 2; the term "Japanese tax" means tax imposed in Japan being tax to which this Convention applies by virtue of paragraph (1) or paragraph (2) of Article 2;
(e) the term "tax" means United Kingdom tax or Japanese tax, as the context requires;
(f) the terms "a Contracting State" and "the other Contracting State" mean the United Kingdom or Japan, as the context requires;
(g) the term "person" includes a company and any other body of persons;
(h) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;
(i) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(j) the term "competent authority" means, in the case of the United Kingdom the Commissioners of Inland Revenue or their authorised representative, and in the case of Japan the Minister of Finance or his authorised representative;
(k) the term "international traffic" means any voyage of a ship or aircraft other than a voyage solely between places in the Contracting State which is not the Contracting State of which the person deriving the profits from the operation of the ship or aircraft is a resident.
(2) As regards the application of this Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes to which this Convention applies
ARTICLE 4
(1) For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that Contracting State, is liable to taxation therein by reason of his domicile, residence, place of head or main office, place of management or any other criterion of a similar nature; the term does not include any individual who is liable to tax in that Contracting State only if he derives income from sources therein. The terms "resident of the United Kingdom" and "resident of Japan" shall be construed accordingly.
(2) Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then the competent authorities shall determine by mutual agreement the Contracting State of which that individual shall be deemed to be a resident for the purposes of this Convention.
(3) Where by reason of the provisions of paragraph (1) of this Article a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its head or main office is situated.
ARTICLE 5
Where under any provision of this Convention income is relieved from tax of a Contracting State and, under the law in force in the other Contracting State, an individual, in respect of the said income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much of the income as is remitted to or received in that other Contracting State.
ARTICLE 6
(1) For the purposes of this Convention, the term "permanent establishment" means a fixed place of business in which the business of the enterprise is wholly or partly carried on.
(2) The term "permanent establishment" shall include especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, quarry or other place of extraction of natural resources;
(g) a building site or construction or assembly project which exists for more than twelve months.
(3) The term "permanent establishment" shall not be deemed to include:
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.
(4) An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it carries on the activity of providing the services within that other Contracting State of public entertainers or athletes referred to in Article 18.
(5) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State—other than an agent of an independent status to whom the provisions of paragraph (6) of this Article apply—shall be deemed to be a permanent establishment in the first-mentioned State if:
(a) he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; or
(b) he maintains in that Contracting State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders on behalf of the enterprise.
(6) An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent...
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