PROTOCOLAMENDING THE CONVENTIONBETWEEN JAPANAND THE UNITED KINGDOM OF GREAT BRITAIN
AND NORTHERN IRELAND
FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINSPROTOCOLAMENDING THE CONVENTIONBETWEEN JAPANAND THE UNITED KINGDOM OF GREAT BRITAIN
AND NORTHERN IRELAND
FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINSJapan and the United Kingdom of Great Britain andNorthern Ireland,
Desiring to amend the Convention between Japan and theUnited Kingdom of Great Britain and Northern Ireland for
the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with respect to Taxes on Income and on
Capital Gains signed at London on 2 February 2006
(hereinafter referred to as “the Convention”) and theProtocol, which forms an integral part of the Convention,
signed at London on 2 February 2006 (hereinafter referred
to as “the Protocol of 2006”),
Have agreed as follows:
ARTICLE 1
Subparagraph (a) of paragraph 1 of Article 2 of theConvention shall be deleted and replaced by the following:“(a)in the case of Japan:(i)

the income tax;(ii)

the corporation tax;(iii)

the special income tax forreconstruction;(iv)

the special corporation tax forreconstruction; and(v)

the local inhabitant taxes(hereinafter referred to as “Japanesetax”);”- 1 -ARTICLE 2
Article 7 of the Convention shall be deleted andreplaced by the following:“Article 7
1.
Profits of an enterprise of a Contracting State
shall be taxable only in that Contracting State unlessthe enterprise carries on business in the other
Contracting State through a permanent establishment
situated therein. If the enterprise carries on
business as aforesaid, the profits that are
attributable to the permanent establishment inaccordance with the provisions of paragraph 2 of this
Article may be taxed in that other Contracting State.
2.
For the purposes of this Article and Article 23of this Convention, the profits that are attributablein each Contracting State to the permanentestablishment referred to in paragraph 1 of this
Article are the profits it might be expected to make,in particular in its dealings with other parts of theenterprise, if it were a separate and independent
enterprise engaged in the same or similar activities
under the same or similar conditions, taking into
account the functions performed, assets used and risks
assumed by the enterprise through the permanentestablishment and through the other parts of theenterprise.
3.
Where, in accordance with paragraph 2 of this
Article, a Contracting State adjusts the profits thatare attributable to a permanent establishment of anenterprise of one of the Contracting States and taxes
accordingly profits of the enterprise that have been
charged to tax in the other Contracting State, theother Contracting State shall, to the extent necessary
to eliminate double taxation on these profits, make anappropriate adjustment to the amount of the tax
charged on those profits. In determining suchadjustment, the competent authorities of theContracting States shall if necessary consult eachother.
4.
Where profits include items of income, profits orgains which are dealt with separately in other
Articles of this Convention, then the provisions of
those Articles shall not be affected by the provisionsof this Article.”- 2 -ARTICLE 3
1.
Paragraph 2 of Article 9 of the Convention shall bedeleted and replaced by the following:“2.
Where a Contracting State includes in the profits
of an enterprise of that Contracting State – and taxes
accordingly – profits on which an enterprise of theother Contracting State has been charged to tax inthat other Contracting State and the profits so
included are profits which would have accrued to theenterprise of the first-mentioned Contracting State if
the conditions made between the two enterprises had
been those which would have been made between
independent enterprises, then that other Contracting
State shall make an appropriate adjustment to theamount of the tax charged therein on those profits.
In determining such adjustment, due regard shall be
had to the other provisions of this Convention and thecompetent authorities of the Contracting States shall
if necessary consult each other.”2.
Paragraph 3 of Article 9 of the Convention shall beamended by deleting the words “seven years” and replacing
them with the words “ten years”.
ARTICLE 4
1.
Paragraph 2 of Article 10 of the Convention shall bedeleted and replaced by the following:“2.
However, such dividends may also be taxed in theContracting State of which the company paying thedividends is a resident and according to the laws ofthat Contracting State, but if the dividends are
beneficially owned by a resident of the other
Contracting State, the tax so charged shall not exceed
10 per cent of the gross amount of the dividends.”
2.
Subparagraph (a) of paragraph 3 of Article 10 of theConvention shall be amended by deleting the words “50 percent” and replacing them with the words “10 per cent”.
3.
A new paragraph shall be added after paragraph 3 ofArticle 10 of the Convention as follows:“4.
The provisions of paragraphs 2 and 3 of this
Article shall not affect the taxation of the company
in respect of the profits out of which the dividends
are paid.”

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4.
Paragraph 4 of Article 10 of the Convention shall beamended by deleting the words “subparagraph (a) ofparagraph 2 and” and renumbered as paragraph 5.
5.
Paragraphs 5, 6, 7, 8 and 9 of Article 10 of theConvention shall be renumbered as paragraphs 6, 7, 8, 9 and
10 respectively.
ARTICLE 5
Article 11 of the Convention shall be deleted andreplaced by the following:“Article 11
1.
Interest arising in a Contracting State andbeneficially owned by a resident of the other
Contracting State shall be taxable only in that other
Contracting State.
2.
Notwithstanding the provisions of paragraph 1 ofthis Article, interest arising in a Contracting State
that is determined by reference to receipts, sales,
income, profits or other cash flow of the debtor or a
related person, to any change in the value of any
property of the debtor or a related person or to any
dividend, partnership distribution or similar payment
made by the debtor or a related person, or any otherinterest similar to such interest arising in aContracting State, may be taxed in the Contracting
State in which it arises, and according to the laws ofthat Contracting State, but if the beneficial owner ofthe interest is a resident of the other Contracting
State, the tax so charged shall not exceed 10 per centof the gross amount of the interest.
3.
The term “interest” as used in this Article means
income from debt-claims of every kind, whether or notsecured by mortgage and whether or not carrying aright to participate in the debtor’s profits, and inparticular, income from government securities andincome from bonds or debentures, including premiums
and prizes attaching to such securities, bonds ordebentures, and all other income that is subjected tothe same taxation treatment as income from money lentby the tax laws of the Contracting State in which theincome arises. Penalty charges for late payment shallnot be regarded as interest for the purposes of this
Article. Income dealt with in Article 10 of thisConvention shall not be regarded as interest for the
purposes of this Convention.

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4.
The provisions of paragraphs 1 and 2 of this
Article shall not apply if the beneficial owner of theinterest, being a resident of a Contracting State,carries on business in the other Contracting State inwhich the interest arises through a permanentestablishment situated therein and the debt-claim in
respect of which the interest is paid is effectively
connected with such permanent establishment. In suchcase the provisions of Article 7 of this Convention
shall apply.
5.
Where, by reason of a special relationshipbetween the payer and the beneficial owner or between
both of them and some other person, the amount of theinterest exceeds, for whatever reason, the amountwhich would have been agreed upon by the payer and thebeneficial owner in the absence of such relationship,
the provisions of this Article shall apply only to thelast-mentioned amount. In such case, the excess partof the payments shall remain taxable according to thelaws of each Contracting State, due regard being had
to the other provisions of this Convention.
6.
A resident of a Contracting State shall not be
considered the beneficial owner of interest in respectof a debt-claim if such debt-claim would not have been
established unless a person:(a)that is not entitled to benefits withrespect to the interest arising in the other
Contracting State which are equivalent to,or more favourable than, those available
under this Convention to a resident of thefirst-mentioned Contracting State; and(b)that is not a resident of either Contracting
State;

held an equivalent debt-claim against the firstmentioned resident.
7.
No relief shall be available under this Article
if it was the main purpose or one of the main purposesof any person concerned with the creation orassignment of the debt-claim in respect of which theinterest is paid to take advantage of this Article bymeans of that creation or assignment.”- 5 -ARTICLE 6
1.
Paragraph 3 of Article 13 of the Convention shall bedeleted and replaced by the following:
“3.

Where
(a)

a Contracting State (including, for thispurpose in the case of Japan, the Deposit
Insurance Corporation of Japan) provides,
pursuant to the laws of that Contracting
State concerning failure resolution
involving imminent insolvency of financial
institutions, substantial financial
assistance to a financial institution thatis a resident of that Contracting State, and(b)a resident of the other Contracting Stateacquires shares in the financial institution
from the first-mentioned Contracting State,

the first-mentioned Contracting State may tax gains
derived by the resident of the other Contracting State
from the alienation of such shares, provided that thealienation is made within five years from the firstdate on which such financial assistance was provided.”2.
Paragraphs 4 and 5 of Article 13 of the Convention
shall be amended by deleting the words “movable property”
and replacing them with the words “any property, other thanimmovable property,”.
ARTICLE 7
1.
Paragraph 1 of Article 22 of the Convention shall beamended by deleting the words “in Article 7;” and by
deleting the words “paragraph 3 of Article 11” andreplacing the words “paragraph 3 of Article 11” with thewords “paragraph 1 of Article 11”.
2.
Paragraph 3, subparagraph (a) of paragraph 5 andparagraph 6 of Article 22 of the Convention shall beamended by deleting the words “of Article 7;” and by
deleting the words “paragraph 3 of Article 11” andreplacing the words “paragraph 3 of Article 11” with thewords “paragraph 1 of Article 11”.

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3.
Clause (ii) of subparagraph (c) of paragraph 7 ofArticle 22 of the Convention shall be deleted and replacedby the following:“(ii)

any stock exchange established under
the terms of the Financial Instruments
and Exchange Law (Law No. 25 of 1948)
of Japan;”4.
Subclause (cc) of clause (i) of subparagraph (e) of
paragraph 7 of Article 22 of the Convention shall beamended by deleting the words “in Article 7;”, by deleting
the words “paragraph 3 of Article 11” and replacing themwith the words “paragraph 1 of Article 11”, and by deleting
the words “, under conditions in that convention which are
no less restrictive than those in this Convention”.
ARTICLE 8
Paragraphs 1 and 2 of Article 23 of the Convention
shall be deleted and replaced by the following:“1.
Subject to the provisions of the law of theUnited Kingdom regarding the allowance as a credit
against United Kingdom tax of tax payable in aterritory outside the United Kingdom or, as the casemay be, regarding the exemption from United Kingdom
tax of a dividend arising in a territory outside theUnited Kingdom or of the profits of a permanentestablishment situated in a territory outside theUnited Kingdom (which shall not affect the generalprinciple hereof):(a)Japanese tax payable under the laws of Japanand in accordance with this Convention,
whether directly or by deduction, on income,profits or chargeable gains from sources
within Japan (excluding in the case of adividend tax payable in respect of the
profits out of which the dividend is paid)
shall be allowed as a credit against any
United Kingdom tax computed by reference tothe same income, profits or chargeable gains
by reference to which the Japanese tax iscomputed;

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(b)

a dividend which is paid by a company which
is a resident of Japan to a company which isa resident of the United Kingdom shall be
exempted from United Kingdom tax, when theconditions for exemption under the law of
the United Kingdom are met;(c)the profits of a permanent establishment inJapan of a company which is a resident of
the United Kingdom shall be exempted from
United Kingdom tax when the exemption isapplicable under the law of the United
Kingdom and the conditions for exemption
under the law of the United Kingdom are met;(d)in the case of a dividend not exempted fromtax under subparagraph (b) of this paragraphwhich is paid by a company which is a
resident of Japan to a company which is a
resident of the United Kingdom and which
controls directly or indirectly at least 10
per cent of the voting power in the company
paying the dividend, the credit mentioned insubparagraph (a) of this paragraph shallalso take into account the Japanese tax
payable by the company in respect of its
profits out of which such dividend is paid.

2.
Subject to the provisions of the laws of Japan
regarding the allowance as a credit against Japanese
tax of tax payable in any country other than Japan,
where a resident of Japan derives income from theUnited Kingdom which may be taxed in the United
Kingdom in accordance with the provisions of thisConvention, the amount of the United Kingdom tax
payable in respect of that income shall be allowed asa credit against the Japanese tax imposed on that
resident. The amount of credit, however, shall not
exceed the amount of the Japanese tax which isappropriate to that income.”
ARTICLE 9
Paragraph 3 of Article 24 of the Convention shall beamended by deleting the words “paragraphs 8 or 9 of Article
10, paragraphs 8, 9 or 10 of Article 11” and replacing themwith the words “paragraphs 9 or 10 of Article 10,paragraphs 5, 6 or 7 of Article 11”.

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ARTICLE 10
1.
A new sentence shall be added to paragraph 3 ofArticle 25 of the Convention as follows:“They may also consult together for the elimination of
double taxation in cases not provided for in theConvention.”2.
Two new paragraphs shall be added to Article 25 of theConvention as follows:“5.

Where,(a)under paragraph 1 of this Article, a person
has presented a case to the competentauthority of a Contracting State on thebasis that the actions of one or both of theContracting States have resulted for that
person in taxation not in accordance withthe provisions of this Convention, and(b)the competent authorities are unable toreach an agreement to resolve that casepursuant to paragraph 2 of this Article
within two years from the presentation of
the case to the competent authority of theother Contracting State,

any unresolved issues arising from the case shall be
submitted to arbitration if the person so requests.
These unresolved issues shall not, however, be
submitted to arbitration if a decision on these issues
has already been rendered by a court or administrative
tribunal of either Contracting State. Unless a person
directly affected by the case does not accept themutual agreement that implements the arbitration
decision, that decision shall be binding on bothContracting States and shall be implemented
notwithstanding any time limits in the domestic lawsof these Contracting States. The competentauthorities of the Contracting States shall by mutual
agreement settle the mode of application of thisparagraph.
6.
The provisions of paragraph 5 of this Article
shall not apply to cases falling within paragraph 3 ofArticle 4 of this Convention.”- 9 -ARTICLE 11
Paragraphs 1 and 2 of Article 26 of the Convention
shall be deleted and replaced by the following:“1.
The competent authorities of the Contracting
States shall exchange such information as isforeseeably relevant for carrying out the provisionsof this Convention or to the administration or
enforcement of the domestic law concerning taxes ofevery kind and description imposed on behalf of theContracting States, or of their political subdivisions
or local authorities, insofar as the taxation
thereunder is not contrary to the Convention. The
exchange of information is not restricted by Articles
1 and 2 of the Convention.
2.
Any information received under paragraph 1 ofthis Article by a Contracting State shall be treatedas secret in the same manner as information obtained
under the domestic law of that Contracting State andshall be disclosed only to persons or authorities(including courts and administrative bodies) concernedwith the assessment or collection of, the enforcement
or prosecution in respect of, the determination of
appeals in relation to the taxes referred to inparagraph 1 of this Article, or the oversight of theabove. Such persons or authorities shall use theinformation only for such purposes. They may disclose
the information in public court proceedings or in
judicial decisions. Notwithstanding the foregoing,
information received by a Contracting State may be
used for other purposes when such information may be
used for such other purposes under the laws of bothContracting States and the competent authority of theother Contracting State authorises such use.”
ARTICLE 12
A new Article shall be added after Article 26 of theConvention as follows:“Article 26A
1.
The Contracting States shall lend assistance toeach other in the collection of revenue claims. This
assistance is not restricted by Articles 1 and 2 ofthis Convention.

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2.
The term “revenue claim” as used in this Articlemeans an amount owed in respect of the taxes covered
by Article 2 of this Convention which are imposed onbehalf of the Contracting States, and in respect of
the following taxes, insofar as the taxation
thereunder is not contrary to this Convention or any
other instrument to which the Contracting States are
parties, as well as interest, administrative penalties
and costs of collection or conservancy related to suchamount:
(a)

(b)

(c)

in the case of Japan:(i)the consumption tax;(ii)

the inheritance tax; and(iii)

the gift tax;

in the case of the United Kingdom:(i)the value added tax; and(ii)

the inheritance tax;

any other tax agreed upon between the
Governments of the Contracting States
through an exchange of diplomatic notes.

3.
When a revenue claim of a Contracting State isenforceable under the laws of that Contracting Stateand is owed by a person who, at that time, cannot,
under the laws of that Contracting State, prevent its
collection, that revenue claim shall, at the requestof the competent authority of that Contracting State,
be accepted for purposes of collection by thecompetent authority of the other Contracting State.
That revenue claim shall be collected by that other
Contracting State in accordance with the provisions of
its laws applicable to the enforcement and collectionof its own taxes as if the revenue claim were arevenue claim of that other Contracting State that met
the conditions allowing that other Contracting Stateto make a request under this paragraph.

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4.
When a revenue claim of a Contracting State is aclaim in respect of which that Contracting State may,under its law, take measures of conservancy with aview to ensure its collection, that revenue claim
shall, at the request of the competent authority ofthat Contracting State, be accepted for purposes oftaking measures of conservancy by the competentauthority of the other Contracting State. That other
Contracting State shall take measures of conservancy
in respect of that revenue claim in accordance withthe provisions of its laws as if the revenue claim
were a revenue claim of that other Contracting Stateeven if, at the time when such measures are applied,
the revenue claim is not enforceable in the firstmentioned Contracting State or is owed by a person who
has a right to prevent its collection.
5.
Notwithstanding the provisions of paragraphs 3
and 4 of this Article, a revenue claim accepted by thecompetent authority of a Contracting State forpurposes of paragraph 3 or 4 of this Article shallnot, in that Contracting State, be subject to the time
limits or accorded any priority applicable to arevenue claim under the laws of that Contracting Stateby reason of its nature as such. In addition, arevenue claim accepted by the competent authority of aContracting State for the purposes of paragraph 3 or 4of this Article shall not, in that Contracting State,
have any priority applicable to that revenue claim
under the laws of the other Contracting State.
6.
Notwithstanding the provisions of paragraph 5 ofthis Article, acts carried out by a Contracting Statein the collection of a revenue claim accepted by thecompetent authority of that Contracting State forpurposes of paragraph 3 or 4 of this Article, which,if they were carried out by the other Contracting
State, would have the effect of suspending orinterrupting the time limits applicable to the revenue
claim according to the laws of that other Contracting
State, shall have such effect under the laws of that
other Contracting State. The first-mentioned
Contracting State shall inform the other Contracting
State about such acts.
7.
Proceedings with respect to the existence,
validity or the amount of a revenue claim of aContracting State shall not be brought before thecourts or administrative bodies of the other
Contracting State.

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8.
Where, at any time after a request has been madeby a Contracting State under paragraph 3 or 4 of this
Article and before the other Contracting State hascollected and remitted the relevant revenue claim to
the first-mentioned Contracting State, the relevant
revenue claim ceases to be(a)in the case of a request under paragraph 3of this Article, a revenue claim of thefirst-mentioned Contracting State that is
enforceable under the laws of thatContracting State and is owed by a person
who, at that time, cannot, under the laws ofthat Contracting State, prevent its
collection, or(b)

in the case of a request under paragraph 4of this Article, a revenue claim of thefirst-mentioned Contracting State in respectof which that Contracting State may, under
its laws, take measures of conservancy witha view to ensure its collection

the competent authority of the first-mentioned
Contracting State shall promptly notify the competentauthority of the other Contracting State of that factand, at the option of the other Contracting State, thefirst-mentioned Contracting State shall either suspend
or withdraw its request.
9.
In no case shall the provisions of this Article
be construed so as to impose on a Contracting Statethe obligation:(a)

to carry out administrative measures atvariance with the laws and administrative
practice of that or of the other Contracting
State;(b)

to carry out measures which would becontrary to public policy;(c)

to provide assistance if the other
Contracting State has not pursued all
reasonable measures of collection orconservancy, as the case may be, available
under its laws or administrative practice;- 13 -

(d)to provide assistance in those cases where
the administrative burden for thatContracting State is clearly
disproportionate to the benefit to be
derived by the other Contracting State;(e)to provide assistance if that Contracting
State considers that the taxes with respect
to which assistance is requested are imposed
contrary to generally accepted taxation
principles.

10. Before assistance is lent under the provisions of
this Article, the competent authorities of bothContracting States shall agree upon the mode ofapplication of this Article, including an agreement toensure comparable levels of assistance to each of theContracting States. In particular, the competentauthorities of both Contracting States shall agree on
a limit to the number of applications for assistancethat a Contracting State may make in a particular
year, as well as a minimum monetary threshold for arevenue claim for which assistance is sought, andprocedural rules related to the remittance of amounts
collected pursuant to the provisions of this Article.”
ARTICLE 13
1.
Paragraph 1 of the Protocol of 2006 shall be amended
by deleting the term “10-3” and replacing it with the term
“10-2” and by adding the words “(as they may be amended
from time to time without changing the general principle
hereof)” after the words “paragraph 1 of Article 20 of its
supplementary provisions”.
2.
Paragraphs 3 and 6 of the Protocol of 2006 shall bedeleted and paragraphs 4 and 5 of the Protocol of 2006
shall be renumbered as paragraphs 3 and 4 respectively.
3.
A new paragraph shall be added to the Protocol of 2006
as follows:“5.
With reference to paragraph 5 of Article 25 of
the Convention:- 14 -

(a)The competent authorities shall by mutual
agreement establish a procedure in order toensure that an arbitration decision will be
implemented within two years from a request
for arbitration as referred to in paragraph
5 of Article 25 of the Convention unlessactions or inaction of a person directly
affected by the case presented pursuant tothat paragraph hinder the resolution of thecase or unless the competent authorities andthat person agree otherwise.

(b)

An arbitration panel shall be established inaccordance with the following rules:(i)

An arbitration panel shall consist of
three arbitrators with expertise or
experience in international tax
matters.

(ii)

The competent authority of eachContracting State shall appoint one
arbitrator who may be a national ofthat Contracting State. The two
arbitrators appointed by the competentauthorities shall appoint the third
arbitrator who will serve as the chairof the arbitration panel in accordancewith the procedures agreed by thecompetent authorities.

(iii)

No arbitrator shall be an employee ofthe tax authority of either Contracting
State, nor have dealt with the casepresented pursuant to paragraph 1 of
Article 25 of the Convention in any
capacity. The third arbitrator shallnot be a national of either Contracting
State, nor have had his usual place ofresidence in either Contracting State,
nor have been employed by either
Contracting State.

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(iv)The competent authorities shall ensurethat all arbitrators and their staff
agree, in statements sent to eachcompetent authority, prior to theiracting in an arbitration proceeding, toabide by and be subject to the same
confidentiality and non-disclosure
obligations described in paragraph 2 ofArticle 26 of the Convention and under
the applicable domestic laws of theContracting States.

(v)

Each competent authority shall bear thecosts of its appointed arbitrator andits own expenses. The costs of thechair of an arbitration panel and otherexpenses associated with the conduct ofthe proceedings shall be borne by thecompetent authorities in equal shares.

(c)

The competent authorities shall provide theinformation necessary for the arbitration
decision to all arbitrators and their staff
without undue delay.

(d)An arbitration decision shall be treated asfollows:(i)

An arbitration decision has no formal
precedential value.

(ii)

An arbitration decision shall be final,
unless that decision is found to be
unenforceable by the courts of one of
the Contracting States due to aviolation of paragraph 5 of Article 25of the Convention, of this paragraph orof any procedural rule determined inaccordance with subparagraph (a) of
this paragraph that may reasonably haveaffected the decision. If the decision
is found to be unenforceable due to theviolation, the decision shall beconsidered not to have been made.

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(e)Where, at any time after a request forarbitration has been made and before thearbitration panel has delivered a decision
to the competent authorities and the person
who made the request for arbitration, thecompetent authorities have reached anagreement on all the unresolved issues
submitted to the arbitration, the case shallbe considered as resolved pursuant toparagraph 2 of Article 25 of the Convention
and no arbitration decision shall be
provided.”
ARTICLE 14

1.
This Protocol shall be approved in accordance with thelegal procedures of each of the Contracting States andshall enter into force on the thirtieth day after the dateof exchange of diplomatic notes indicating such approval.
2.

This Protocol shall be applicable:
(a)

(b)

in the United Kingdom:(i)with respect to taxes withheld at source, toincome derived on or after 1 January in thecalendar year next following that in which
this Protocol enters into force;(ii)

subject to clause (i) of subparagraph (a) of
this paragraph, with respect to income tax
and capital gains tax, for any year ofassessment beginning on or after 6 April inthe calendar year next following that inwhich this Protocol enters into force; and(iii)

with respect to corporation tax, for any
financial year beginning on or after 1 Aprilin the calendar year next following that inwhich this Protocol enters into force; andin Japan:(i)with respect to taxes withheld at source,
for amounts taxable on or after 1 January inthe calendar year next following that inwhich this Protocol enters into force; and- 17 -

(ii)with respect to taxes on income which are
not withheld at source, as regards income
for any taxable year beginning on or after 1
January in the calendar year next followingthat in which this Protocol enters into
force.

3.
Notwithstanding the provisions of paragraph 2 of this
Article, the provisions of Article 7 of the Convention as
amended by Article 2 of this Protocol shall be applicablewith respect to profits for any taxable year or chargeable
period beginning on or after a date to be agreed between
the Governments of the Contracting States through an
exchange of diplomatic notes. Until the provisions ofArticle 7 of the Convention as amended by Article 2 of thisProtocol are applicable, the provisions of the original
Article 7 of the Convention shall continue to apply.
4.
Notwithstanding the provisions of paragraph 2 of this
Article, the provisions of paragraphs 3, 5 and 6 of Article
25, paragraphs 1 and 2 of Article 26 and Article 26A of theConvention, and paragraph 5 of the Protocol of 2006, as
amended by this Protocol, shall have effect from the dateof entry into force of this Protocol, without regard to thetaxable year or chargeable period to which the matter
relates. For the purposes of paragraph 5 of Article 25 of
the Convention, as amended by this Protocol, no case may besubmitted to arbitration earlier than a date two years fromthe entry into force of this Protocol.
5.
This Protocol shall remain in force as long as theConvention remains in force.
IN WITNESS WHEREOF the undersigned, being duly
authorised thereto by their respective Governments, havesigned this Protocol.

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DONE in duplicate at London this seventeenth day ofDecember, 2013, in the Japanese and English languages, eachtext being equally authoritative.

For Japan:

For the United Kingdomof Great Britain
and Northern Ireland:

Keiichi Hayashi

David Gauke- 19 -