The governments of Japan and Latvia signed their first tax treaty in Tokyo on 18 January 2017. The treaty will come into force when the two countries have ratified the provisions and notified each other of the completion of procedures.
According to the agreement, royalties will be exempt from withholding tax and would lower withholding tax on interest and dividends beneficially owned by a person other than an individual to 10%. The agreement also includes a key purpose test to prevent tax treaty abuse.
