DTC agreement between Italy and Japan

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CONVENTION BETWEEN JAPAN AND THE REPUBLIC OF ITALY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME MARCH 20, 19691. ARTICLE 1 This Convention shall apply to persons who are resident of one or both of the Contracting States. ARTICLE 2 (1) The taxes which are the subject of this Convention are: (a) In Japan: (i) the income tax; (ii) the corporation tax; and (iii) the local inhabitant taxes (hereinafter referred to as Japanese tax ) (b) I
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   1 CONVENTION BETWEENJAPAN ANDTHE REPUBLIC OF ITALYFOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCALEVASION WITH RESPECT TO TAXES ON INCOMEMARCH 20, 1969 1 . ARTICLE 1This Convention shall apply to persons who are resident of one or both of the Contracting States.ARTICLE 2(1) The taxes which are the subject of this Convention are:(a) In Japan:(i) the income tax;(ii) the corporation tax; and(iii) the local inhabitant taxes (hereinafter referred to as Japanese tax )(b) In Italy:(i) the tax on income from land (imposta sul reddito dei terreni);(ii) the tax on income from buildings (imposta sul reddito dei fabbricati);(iii) the tax on income from movable wealth (imposta sui redditi di ricchezza mobile);(iv) the tax on agricultural income (imposta sul reddito agrario);(v) the complementary tax (imposta complementare progressiva sul reddito);(vi) the tax on companies (imposta sulle società) in so far as the tax is charged on income and noton capital;(vii) the tax on profits distributed by companies (imposta sugli utili distribuiti dalle societa);and(viii) the family tax (imposta di famiglia) (hereinafter referred to as Italian tax ). 1 Entry into Force: According to Article 28, it entered into force in February 1973. The Convention has effect as of January 1, 1973.   2  (2) This Convention shall also apply to any identical or substantially similar taxes which aresubsequently imposed in addition to, or in place of, those referred to in the preceding paragraph.The competent authorities of the Contracting States shall notify to each other any changes whichhave been made in their respective taxation laws within a reasonable period of time after suchchanges.ARTICLE 3(1) In this Convention, unless the context otherwise requires:(a) the term Japan , when used in a geographical sense, means all the territory in which the lawsrelating to Japanese tax are in force;(b) the term Italy means the Republic of Italy;(c) the terms a Contracting State and the other Contracting State mean Japan or Italy, as thecontext requires;(d) the term tax means Japanese tax or Italian tax, as the context requires;(e) the term person includes a company and any other body of persons;(f) the term company means any body corporate or any entity which is treated as a bodycorporate for tax purposes;(g) the terms enterprise of a Contracting State and enterprise of the other Contracting State mean respectively an enterprise carried on by a resident of a Contracting State and an enterprisecarried on by a resident of the other Contracting State;(h) the term nationals means:(i) in respect of Japan: all individuals possessing the nationality of Japan and all juridicalpersons created or organized under the laws of Japan and all organizations without juridicalpersonality treated for the purposes of Japanese tax as juridical persons created or organizedunder the laws of Japan;(ii) in respect of Italy: all individuals possessing the nationality of Italy and all juridicalpersons created or organized under the laws of Italy and all organizations without juridicalpersonality treated for the purposes of Italian tax either as juridical persons created ororganized under the laws of Italy or as individuals possessing the nationality of Italy:(i) the term competent authority in relation to a Contracting State means the Minister of Finance of that Contracting State or his authorized representative.(2) As regards the application of this Convention in a Contracting State any term not otherwisedefined in this Convention shall, unless the context otherwise requires, have the meaning which ithas under the laws of that Contracting State relating to the taxes which are the subject of thisConvention.   3  ARTICLE 4(1) For the purpose of this Convention, the term resident of a Contracting State means any personwho, under the law of that Contracting State, is liable to taxation therein by reason of his domicile,residence, place of head or main office, place of management or any other criterion of a similarnature.(2) Where by reason of the provisions of paragraph (1) a person is a resident of both ContractingStates, then the competent authorities shall determine by mutual agreement the Contracting State of which that person shall be deemed to be a resident for the purposes of this Convention.ARTICLE 5(1) For the purposes of this Convention, the term permanent establishment means a fixed place of business in which the business of the enterprise is wholly or partly carried on.(2) The term permanent establishment shall include especially:(a) a place of management;(b) a branch;(c) an office;(d) a factory;(e) a workshop;(f) a mine, quarry or other place of extraction of natural resources;(g) a building site or construction or assembly project which exists for more than twelve months.(3) The term permanent establishment shall not be deemed to include:(a) the use of facilities solely for the purpose of storage, display or delivery of goods ormerchandise belonging to the enterprise;(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for thepurpose of storage, display or delivery;(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for thepurpose of processing by another enterprise;(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods ormerchandise, or for collecting information, for the enterprise;(e) the maintenance of a fixed place of business solely for the purpose of advertising, for thesupply of information, for scientific research or for similar activities which have a preparatory orauxiliary character, for the enterprise.   4  (4) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State -- other than an agent of an independent status to whom paragraph (5) of this Article applies -shallbe deemed to be a permanent establishment in the first-mentioned Contracting State if he has, andhabitually exercises in the first-mentioned Contracting State, an authority to conclude contracts inthe name of the enterprise, unless his activities are limited to the purchase of goods or merchandisefor the enterprise.(5) An enterprise of a Contracting State shall not be deemed to have a permanent establishment inthe other Contracting State merely because it carries on business in that other Contracting Statethrough a broker, general commission agent or any other agent of an independent status, where suchpersons are acting in the ordinary course of their business.(6) The fact that a company which is a resident of a Contracting State controls or is controlled by acompany which is a resident of the other Contracting State, or which carries on business in thatother Contracting State (whether through a permanent establishment or otherwise), shall not of itself constitute for either company a permanent establishment of the other.ARTICLE 6(1) Income from immovable property may be taxed in the Contracting State in which such propertyis situated.(2) The term immovable property shall be defined in accordance with the laws of the ContractingState in which the property in question is situated. The term shall in any case include propertyaccessory to immovable property, livestock and equipment used in agriculture and forestry, rightsto which the provisions of general law respecting immovable property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, orthe right to work, mineral deposits, sources and other natural resources; ships and aircraft shall notbe regarded as immovable property.(3) The provisions of paragraph (1) shall apply to income derived from the direct use, letting, or usein any other form of immovable property.(4) The provisions of paragraphs (1) and (3) shall also apply to the income from immovableproperty of an enterprise and to income from immovable property used for the performance of professional services.ARTICLE 7(1) The profits of an enterprise of a Contracting State shall be exempt from tax of the otherContracting State unless the enterprise carries on business in the other Contracting State through apermanent establishment situated therein. If the enterprise carries on business as aforesaid, theprofits of the enterprise may be taxed in the other Contracting State but only so much of them as isattributable to that permanent establishment.
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