Japan and Turkmenistan signed the tax treaty “Convention between Japan and Turkmenistan for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance” in Ashgabat on 16 December 2024.
The announcement was made by the Ministry of Finance of Japan on 17 December 2024.
This Convention wholly amends the existing Convention (Convention between the Government of Japan and the Government of the Union of Soviet Socialist Republics for the Avoidance of Double Taxation with respect to Taxes on Income), which entered into force in 1986, by revising the taxation on business profits and investment income, introducing measures for prevention of abuse of this Convention, arbitration proceedings in mutual agreement procedures and assistance in the collection of tax claims, and reinforcing the exchange of information concerning tax matters.
It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Convention will promote further mutual investments and economic exchanges between the two countries.
The treaty will come into effect 30 days after the exchange of ratification instruments and will be applicable starting from 1 January of the year following its effective date.
