Chamber Welcomes New Tax Treaty With Japan

WASHINGTON, D.C. – The United States Chamber of Commerce called today's signing of a new tax treaty between the United States and Japan an important step toward enhancing U.S.-Japan trade and investment prospects.

"This treaty is long overdue," said Thomas Donohue, Chamber President and CEO. "American and Japanese companies stand to gain a great deal by modernizing a tax treaty that hasn't been revised since 1971."

Key achievements of the new treaty include more equitable treatment for U.S. corporate investors, relief from double taxation, and a strengthening of dispute resolution mechanisms. The treaty provides for substantial reductions in the withholding taxes imposed on cross-border dividends, interest, royalties, and other income.

The new tax treaty will be subject to ratification according to the procedures of each of the two countries. In the United States, the signed treaty will be transmitted to the Senate for its advice and consent to ratification.

"The Chamber will work for the early transmission of this treaty to the U.S. Senate and for ratification as soon as possible. We also urge Japan not to delay in ratifying this mutually beneficial treaty," said Donohue.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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