The comprehensive tax information exchange agreement (TIEA) between Japan and the Cayman Islands will come into force on November 13, 2011. The TIEA was originally signed on February 7 this year.
The agreement includes an agreed allocation of taxation rights with respect to individual incomes. According to that provisions are made for tax exemptions with respect to income received by pensioners, students and government employees who are also residents of Japan. This is done with the purpose of avoiding double taxation and promoting the exchange of individuals between Japan and the Cayman Islands.
