Japan has maintained its relationship with Taiwan on the basis of non-governmental, working-level relations through the Interchange Association（Japanese side）and the Association of East Asian Relations（Taiwanese side）.These associations signed the ‘Agreement between the Interchange Association and the Association of East Asian Relations for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income’（Tax Agreement）on 26 November 2015 and the Tax Agreement entered into force on 13 June 2016.
Under the 2016 tax reform, the ‘Mutual Exemption Law for Income of Foreign Nationals Related to International Transportation Business’ was amended and renamed the ‘Mutual Exemption Law for Income of Foreign Residents’ in order to implement measures provided for under the Tax Agreement in Japan. The Act will be effective on 1 January 2017.
On 30 November 2016, the National Tax Agency released the guidance and application forms.
KPMG Japan e-Tax News No.125