Japan, Greece Sign Their 1st Double-Tax Treaty

Japan and Greece signed their first tax convention Wednesday, with clauses on eliminating double taxation and deepening communication between the countries' tax authorities, the Japanese Ministry of Finance said.

Minister of National Economy and Finance Kostis Hatzidakis and the Japanese Ambassador to Greece, Yasunori Nakayama, signed the Greece-Japan Double Taxation Avoidance (DTA) Treaty and the accompanying protocol.

The treaty aims to strengthen the cooperation of the two countries in tax matters and, in particular, to eliminate double taxation with regard to taxes on income without creating opportunities for non-imposition of taxation or for reduced taxation through tax evasion or avoidance.

According to the ministry, given that Double Taxation Treaties are the most important form of economic cooperation between two states, it is expected to act as an incentive for the further development of economic relations between Greece and Japan, providing a framework of tax transparency, stability and security.

"Japan is the third largest economy in the world. A large economy that Greece cannot ignore. The Prime Minister himself underlined this during his recent visit to Japan. The fact that we got an investment grade from the Japanese rating agency R&I in the summer will bring us closer and facilitate more Japanese investments in Greece. This treaty that we are signing to avoid double taxation and which we will soon ratify in the Hellenic Parliament also brings us closer," Hatzidakis commented.