The Governments of Japan and Austria have agreed in principle to amend their double taxation avoidance agreement to further promote trade and investment between the two countries. The new agreement would enable arbitration under the mutual agreement procedure to ensure settlement of disputes concerning the application of the treaty. The changes to the agreement will come into force after the completion of the approval process in both countries.
Under this new agreement, the withholding tax rate at source on investment income (dividends, interest, and royalties) will reduce, and expand cooperation between the tax authorities of the two countries by providing for assistance in the collection of taxes.
