ArmInfo. On December 19, at a regular meeting, the Government of Armenia approved the signing of a convention with Japan for the avoidance of double taxation of income and the prevention of fiscal evasion with respect to income and capital taxes.
As stated in the explanatory note to the document, by signing the convention, it will be possible to: eliminate double taxation of income between the Republic of Armenia and Japan, which will stimulate entrepreneurial activity in the contracting states by creating favorable competitive conditions; create a favorable investment environment, promote bilateral trade, investment flow by creating a favorable tax environment for foreign investment; create a predictable and stable tax environment for investors; promote the growth of the RA's involvement in international tax relations.
It is also noted that the agreements concluded between the states on the avoidance of double taxation of income and property (conventions) also provide for the establishment of cooperation between the tax authorities of the two states.
This cooperation includes the possibility of settling disputes regarding the application of tax legislation, as well as the exchange of information in order to prevent tax evasion, which is an effective tool and allows for proper control over the implementation of the provisions of the agreement. The signing of the convention will provide an opportunity to develop the circulation of goods and services, the movement of capital, technology and people between the Republic of Armenia and Japan, and will promote the development of economic ties.
