The Czech Ministry of Finance announced that Japan’s new Special Corporation Tax for Defence will be included under the Czech-Japan double taxation treaty, effective 1 April 2026.

The Czech Republic’s Ministry of Finance has announced, on 5 November 2025, that Japan’s recently introduced Special Corporation Tax for Defence will be recognised under the existing double taxation treaty between the two countries.

According to the Ministry, the Japanese competent authority has informed the Czech officials that the new tax, a 4% surtax applied to corporate income tax, will fall within the scope of taxes covered by the convention. The taxable period for this “surtax” corresponds to the accounting period of each company.

The treaty, signed initially between the Czechoslovak Socialist Republic and Japan in 1979, aims to prevent double taxation on income and ensure fair tax treatment for businesses operating in both countries.

The Ministry emphasised that the new provision will take effect on 1 April 2026.