The Newly Revised Israel–Japan Double Taxation Convention: The MLI’s Impacts and Implications

• Autores: Yehoshua Sherman, Zeev Weiss, Reika Saito
• Localización: Intertax, ISSN 0165-2826, Vol. 48, Nº. 10, 2020, págs. 904-921
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • The Israel–Japan DTC has now been amended in accordance with the mandates set forth by the OECD’s ‘Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting’ (MLI) as a consequence of the fact that both Israel and Japan are signatories to that agreement.

    The revisions to this tax treaty have found expression in a number of contexts, each being potentially outcome determinative as to the profitability – and even the viability – of a commercial enterprise or transaction conducted between the two Contracting States.

    Albeit the MLI revisions adopted in this treaty are common to many of the revised DTCs, the potential impact for Japanese and Israeli investors are particularly sensitive in light of the revisions introduced vis-à-vis the provisions of the previous treaty and upon which large scale business planning was carried out. Among the revisions with which the business community will have to contend are, inter alia, the mechanism for resolving dual corporate residence (previously the treaty had a place of incorporation test), the expanded scope of the permanent establishment threshold test and the introduction of the Principal Purposes Test (PPT) into a treaty which previously contained no broad anti-avoidance provision