The Federation Council ratified the tax Convention with Japan

© RIA Novosti / Maxim to Aminopherase in photobacteria of the Federation Council of the Russian Federation. Archival photoThe Federation Council ratified the tax Convention with Japan© RIA Novosti / Maxim to Aminopherase the image Bank

The senators on Saturday ratified the Russian-Japanese Convention on the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and the Protocol thereto.

The Convention will replace the current document, signed by the governments of the USSR and Japan.

The new Convention contains provisions that improve the efficiency of information exchange between the tax authorities of Russia and Japan on the taxes of every type and kind, including consequential, explained in the government of the Russian Federation.

The document shall apply to taxes levied from total income or individual items of income of persons who are residents of one or both of the States, including taxes on gains from the alienation of any property and taxes on total amount of salaries paid by enterprises.

Dividends paid by a company which is resident of the Russian Federation, the resident of Japan may be taxed in Japan, and Vice versa. At the same time provides for a special regime of taxation of dividends from shares or similar shares.

It is also assumed that the profit made by the Russian enterprise from the operation of ships or aircraft in international traffic will be taxable only in Russia, and received a Japanese company only in Japan.