JS-1674: Treasury Releases Technical Clarification Relating to <script type="text/javascript"> var wmNotice = "UNT Web Archive - External links, forms, and search boxes may not function within this collection. Url: http://www.treas.gov/press/releases/js1674.htm time: 8:21:44 Jan 16, 2009"; var wmHideNotice = "hide"; var contextRoot = "https://webarchive.library.unt.edu/eot2008/"; </script> <script type="text/javascript" src="https://webarchive.library.unt.edu/eot2008/js/disclaim.js"></script> <br>U.S.-Japan Income Tax Treaty



	FROM THE OFFICE OF PUBLIC AFFAIRS To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. May 21, 2004 JS-1674 Treasury Releases Technical Clarification Relating to U.S.-Japan Income Tax Treaty A Record of Discussions with respect to the new U.S.-Japan Income Tax Treaty was signed on May 19^th in Tokyo by U.S. and Japanese officials. The Record of Discussions provides clarification regarding the application of clause 3(c)(iv) of Article 11 of the Treaty, relating to the qualification of financial institutions for elimination of source-country withholding taxes on interest income. Article 11 of the Treaty generally permits the source country to impose withholding taxes on interest at a maximum rate of 10 percent. However, paragraph 3(c) of Article 11 of the Treaty provides for the elimination of source-country withholding tax on interest received by banks (including investment banks), insurance companies, and registered securities dealers. Paragraph 3(c) of Article 11 also provides for the elimination of source-country withholding tax on interest received by other enterprises that meet asset and liability conditions set forth in clause (iv) that are characteristic of financial businesses. This provision is intended to ensure comparable treatment of different types of financial businesses. The particular language relating to asset and liability conditions for eligibility for the elimination of interest withholding tax is unique to the new U.S.-Japan Income Tax Treaty. The document signed on May 19^th memorializes the intended technical application of these conditions in the context of a financial business that operates through a multiple entity group. A copy of the Record of Discussions is attached. -30- REPORTS Record of Discussions