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The agreement between Japan and Peru to avoid double taxation enters into force

This content was published on January 14, 2021 – 03:46

Tokyo, Jan 14 (EFE) .- The Government of Japan announced today the entry into force at the end of the month of the agreement signed with Peru to avoid double taxation between the two countries and fight against tax evasion, once they have been completed all the necessary paperwork.

The agreement was signed by representatives of both countries in November 2019 in Lima, and at the end of last December Japan received notification from Peru about the end of its internal procedures necessary for its entry into force, as reported this Thursday in a statement by the Foreign Ministry. Japanese.

The agreement establishes the parameters in which the tax charges will be applied to the corporate profits of the two countries, in the event that they have a permanent establishment in either of the two nations outside of their headquarters.

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Likewise, among other items, it sets 10% as the maximum tax burden for dividend and interest income in the country where they occur, and 15% for royalties.

The agreement also includes the exchange of information to prevent tax evasion between the two nations.

It is expected that its entry into force on January 29 will allow “promoting mutual investment and economic exchanges between the two countries,” according to the Japanese Foreign Ministry.

According to official data, Japan imported from Peru in 2019 products worth 263,155 million yen (2,188 million euros / 2,422 million dollars).

Japanese exports reached 81,264 million yen (676 million euros / 748 million dollars).

Peru ranks third in the world for the number of people of Japanese origin, about 100,000. The two countries signed a free trade agreement in 2011 that came into effect in March 2012. EFE

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