Armenia to eliminate double taxation with Japan: parliamentary committee approves relevant convention

YEREVAN, September 2. /ARKA/. During its session on Tuesday, the Armenian Parliamentary Committee on Economic Affairs expressed a favorable opinion regarding the convention with Japan aimed at eliminating double taxation on income and preventing tax evasion.

“The initiative reinstates the practice of legal relations that eliminate double taxation. More advantageous tax conditions than those stipulated by national legislation are mutually established for residents of both nations. A stable and predictable tax environment is being developed,” the parliament's press service stated in a release.

The agreements grant the right to tax passive income primarily to the country where the income payment originates, and this agreement is no exception. In certain instances, tax rates lower than those set by existing national legislation are offered, particularly when a specific investment threshold is surpassed. It is anticipated that a stable foundation for mutual cooperation between the tax authorities of both countries will be established.

The convention was signed on December 26, 2024, in Yerevan, and it outlines the terms and rates of taxation for the main types of income - dividends, interest, and royalties - in the country where the income is received for the business sectors of the contracting states based on the principle of reciprocity.

On May 8, 2025, the Armenian government approved the convention. According to Hiroyuki Nagahama, Vice-Chairman of the House of Councilors of the National Assembly of Japan, the agreement has already been ratified by both chambers of the Japanese parliament.-0-