CONVENTIONBETWEEN THE GOVERNMENT OF JAPANAND THE GOVERNMENT OF THE RUSSIAN FEDERATIONFOR THE ELIMINATION OF DOUBLE TAXATIONWITH RESPECT TO TAXES ON INCOME
AND THE PREVENTION OF TAX EVASION AND AVOIDANCECONVENTIONBETWEEN THE GOVERNMENT OF JAPANAND THE GOVERNMENT OF THE RUSSIAN FEDERATIONFOR THE ELIMINATION OF DOUBLE TAXATIONWITH RESPECT TO TAXES ON INCOME
AND THE PREVENTION OF TAX EVASION AND AVOIDANCEThe Government of Japan and the Government of theRussian Federation,
Desiring to further develop their economic
relationship and to enhance their co-operation in tax
matters,
Intending to conclude a Convention for the eliminationof double taxation with respect to taxes on income without
creating opportunities for non-taxation or reduced taxation
through tax evasion or avoidance (including through treatyshopping arrangements aimed at obtaining reliefs provided
in this Convention for the indirect benefit of residents ofthird jurisdictions),
Have agreed as follows:
Article 1
PERSONS COVERED1.
This Convention shall apply to persons who areresidents of one or both of the Contracting States.
2.
For the purposes of this Convention, income derived byor through an entity or arrangement that is treated aswholly or partly fiscally transparent under the tax law ofeither Contracting State shall be considered to be incomeof a resident of a Contracting State but only to the extent
that the income is treated, for purposes of taxation bythat Contracting State, as the income of a resident of thatContracting State. In no case shall the provisions of thisparagraph be construed so as to affect a Contracting
State’s right to tax the residents of that Contracting
State. For the purposes of this paragraph, the term
“fiscally transparent” means situations where, under the
tax law of a Contracting State, income or part thereof ofan entity or arrangement is taxed not at the level of theentity or arrangement but at the level of the persons who
have an interest in that entity or arrangement as if that
income or part thereof were directly derived by such
persons at the time when that income or part thereof isrealised whether or not that income or part thereof is
distributed by that entity or arrangement to such persons.

- 1 -Article 2
TAXES COVERED1.
This Convention shall apply to taxes on income imposedon behalf of a Contracting State or of its subdivisions or
local authorities, irrespective of the manner in which they
are levied.
2.
There shall be regarded as taxes on income all taxes
imposed on total income or on elements of income, including
taxes on gains from the alienation of any property andtaxes on the total amounts of wages or salaries paid byenterprises.
3.
The existing taxes to which this Convention shallapply are:(a)in Japan:(i)

the income tax;(ii)

the corporation tax;(iii)

the special income tax for reconstruction;(iv)

the local corporation tax; and(v)

the local inhabitant taxes(hereinafter referred to as “Japanese tax”); and(b)in the Russian Federation (hereinafter referred
to as “Russia”):(i)the tax on profits of organisations; and(ii)

the tax on income of individuals(hereinafter referred to as “Russian tax”).
4.
This Convention shall apply also to any identical or
substantially similar taxes that are imposed after the dateof signature of this Convention in addition to, or in placeof, the existing taxes. The competent authorities of theContracting States shall notify each other of any
significant changes that have been made in their taxation
laws.
Article 3
GENERAL DEFINITIONS
1.
For the purposes of this Convention, unless thecontext otherwise requires:

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(a)

the terms “a Contracting State” and “the other
Contracting State” mean Japan or Russia, as thecontext requires;(b)the term “person” includes an individual, acompany and any other body of persons;(c)the term “company” means any body corporate or
any entity that is treated as a body corporate
for tax purposes;(d)the term “enterprise” applies to the carrying onof any business;(e)

the terms “enterprise of a Contracting State” and“enterprise of the other Contracting State” mean
respectively an enterprise carried on by aresident of a Contracting State and an enterprise
carried on by a resident of the other Contracting
State;(f)

the term “international traffic” means any
transport by a ship or aircraft operated by anenterprise of a Contracting State, except when
the ship or aircraft is operated solely between
places in the other Contracting State;(g)

the term “competent authority” means:

(h)

(i)

(i)

in Japan, the Minister of Finance or his
authorised representative; and(ii)

in Russia, the Ministry of Finance of theRussian Federation or its authorised
representative;

the term “national”, in relation to a Contracting
State, means:(i)

any individual possessing the nationality or
citizenship of that Contracting State; and(ii)

any legal person, partnership or association
deriving its status as such from the laws inforce in that Contracting State;

the term “business” includes the performance ofprofessional services and of other activities ofan independent character; and

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(j)

the term “pension fund” means any person that is:(i)established under the laws of a Contracting
State; and(ii)

operated principally to administer orprovide pensions, retirement benefits orother similar remuneration or to earn income
for the benefit of other pension funds;

provided that it is:(iii)

in the case of Japan, exempt from tax inJapan with respect to income derived fromthe activities described in clause (ii) of
this subparagraph;(iv)

in the case of Russia, an entity organised
under the Federal Law “On Non State Pension
Funds” (Law No. 75-FZ on 7 May, 1998),
including such as may be amended from time
to time without changing the generalprinciple thereof.

2.
As regards the application of this Convention at any
time by a Contracting State, any term not defined thereinshall, unless the context otherwise requires, have themeaning that it has at that time under the law of thatContracting State for the purposes of the taxes to which
this Convention applies, any meaning under the applicable
tax laws of that Contracting State prevailing over ameaning given to the term under other laws of thatContracting State.
Article 4
RESIDENT1.
For the purposes of this Convention, the term
“resident of a Contracting State” means any person who,
under the laws of that Contracting State, is liable to tax
therein by reason of his domicile, residence, place of heador main office, place of incorporation, place of management
or any other criterion of a similar nature, and also
includes that Contracting State and any subdivision or
local authority thereof. This term, however, does notinclude any person who is liable to tax in that Contracting
State in respect only of income from sources in thatContracting State.
2.
Where by reason of the provisions of paragraph 1 ofthis Article an individual is a resident of bothContracting States, then his status shall be determined asfollows:

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(a)

he shall be deemed to be a resident only of theContracting State in which he has a permanent
home available to him; if he has a permanent homeavailable to him in both Contracting States, heshall be deemed to be a resident only of theContracting State with which his personal andeconomic relations are closer (centre of vitalinterests);(b)

if the Contracting State in which he has his
centre of vital interests cannot be determined,
or if he has not a permanent home available tohim in either Contracting State, he shall bedeemed to be a resident only of the Contracting
State in which he has an habitual abode;(c)

if he has an habitual abode in both Contracting
States or in neither of them, he shall be deemed
to be a resident only of the Contracting State ofwhich he is a national;(d)

if he is a national of both Contracting States orof neither of them, the competent authorities of
the Contracting States shall settle the question
by mutual agreement.

3.
Where by reason of the provisions of paragraph 1 ofthis Article a person other than an individual is a
resident of both Contracting States, the competentauthorities of the Contracting States shall endeavour todetermine by mutual agreement the Contracting State ofwhich such person shall be deemed to be a resident for the
purposes of this Convention, having regard to its place ofhead or main office, its place of effective management, theplace where it is incorporated or otherwise constituted andany other relevant factors. In the absence of suchagreement, such person shall not be entitled to any relief
or exemption from tax provided by this Convention.
Article 5
PERMANENT ESTABLISHMENT
1.
For the purposes of this Convention, the term
“permanent establishment” means a fixed place of businessthrough which the business of an enterprise is wholly or
partly carried on.
2.
The term “permanent establishment” includes
especially:(a)a place of management;

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(b)

a branch;(c)an office;(d)a factory;(e)a workshop; and(f)a mine, an oil or gas well, a quarry or any otherplace of extraction of natural resources.

3.
A building site or construction or installation
project constitutes a permanent establishment only if it
lasts more than twelve months.
4.
Notwithstanding the preceding provisions of this
Article, the term “permanent establishment” shall be deemed
not to include:(a)the use of facilities solely for the purpose ofstorage or display of goods or merchandise
belonging to the enterprise;(b)

the maintenance of a stock of goods ormerchandise belonging to the enterprise solely
for the purpose of storage or display;(c)the maintenance of a stock of goods ormerchandise belonging to the enterprise solely
for the purpose of processing by anotherenterprise;(d)the maintenance of a fixed place of businesssolely for the purpose of purchasing goods ormerchandise or of collecting information, for theenterprise;(e)the maintenance of a fixed place of businesssolely for the purpose of carrying on, for theenterprise, any activity not listed insubparagraphs (a) to (d) of this paragraph,provided that this activity has a preparatory or
auxiliary character; or(f)the maintenance of a fixed place of businesssolely for any combination of activities
mentioned in subparagraphs (a) to (e) of thisparagraph, provided that the overall activity of
the fixed place of business resulting from thiscombination is of a preparatory or auxiliary
character.

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5.
Paragraph 4 of this Article shall not apply to a fixedplace of business that is used or maintained by anenterprise if the same enterprise or a closely related
enterprise carries on business activities at the same place
or at another place in the same Contracting State and:(a)that place or other place constitutes a permanentestablishment for the enterprise or the closely
related enterprise under the provisions of this
Article; or(b)the overall activity resulting from the
combination of the activities carried on by thetwo enterprises at the same place, or by the same
enterprise or closely related enterprises at thetwo places, is not of a preparatory or auxiliary
character,provided that the business activities carried on by the twoenterprises at the same place, or by the same enterprise or
closely related enterprises at the two places, constitutecomplementary functions that are part of a cohesive
business operation.
6.
Notwithstanding the provisions of paragraphs 1 and 2of this Article but subject to the provisions of paragraph
7 of this Article, where a person is acting in aContracting State on behalf of an enterprise and, in doingso, habitually concludes contracts, or habitually plays theprincipal role leading to the conclusion of contracts thatare routinely concluded without material modification by
the enterprise, and these contracts are:(a)in the name of the enterprise; or(b)for the transfer of the ownership of, or for the
granting of the right to use, property owned bythat enterprise or that the enterprise has theright to use; or(c)for the provision of services by that enterprise,that enterprise shall be deemed to have a permanentestablishment in that Contracting State in respect of any
activities which that person undertakes for the enterprise,
unless the activities of such person are limited to thosementioned in paragraph 4 of this Article which, if
exercised through a fixed place of business, would not makethis fixed place of business a permanent establishment
under the provisions of that paragraph.

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7.
Paragraph 6 of this Article shall not apply where theperson acting in a Contracting State on behalf of anenterprise of the other Contracting State carries on
business in the first-mentioned Contracting State as anindependent agent and acts for the enterprise in theordinary course of that business. Where, however, a person
acts exclusively or almost exclusively on behalf of one ormore enterprises to which it is closely related, that
person shall not be considered to be an independent agent
within the meaning of this paragraph with respect to any
such enterprise.
8.
For the purposes of this Article, a person orenterprise is closely related to an enterprise if, based on
all the relevant facts and circumstances, one has controlof the other or both are under the control of the same
persons or enterprises. In any case, a person orenterprise shall be considered to be closely related to an
enterprise if one possesses directly or indirectly morethan 50 per cent of the beneficial interest in the other(or, in the case of a company, more than 50 per cent of theaggregate vote and value of the company’s shares or of thebeneficial equity interest in the company) or if anotherperson or enterprise possesses directly or indirectly morethan 50 per cent of the beneficial interest (or, in thecase of a company, more than 50 per cent of the aggregate
vote and value of the company’s shares or of the beneficial
equity interest in the company) in the person and theenterprise or in the two enterprises.
9.
The fact that a company which is a resident of aContracting State controls or is controlled by a company
which is a resident of the other Contracting State, or
which carries on business in that other Contracting State(whether through a permanent establishment or otherwise),shall not of itself constitute either company a permanentestablishment of the other.
Article 6
INCOME FROM IMMOVABLE PROPERTY
1.
Income derived by a resident of a Contracting State
from immovable property (including income from agriculture
or forestry) situated in the other Contracting State may betaxed in that other Contracting State.

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2.
The term “immovable property” shall have the meaning
which it has under the law of the Contracting State inwhich the property in question is situated. The term shallin any case include property accessory to immovable
property, livestock and equipment used in agriculture andforestry, rights to which the provisions of general law
respecting landed property apply, usufruct of immovable
property and rights to variable or fixed payments as
consideration for the working of, or the right to work,
mineral deposits, sources and other natural resources;
ships and aircraft shall not be regarded as immovable
property.
3.
The provisions of paragraph 1 of this Article shallapply to income derived from the direct use, letting, oruse in any other form of immovable property.
4.
The provisions of paragraphs 1 and 3 of this Article
shall also apply to the income from immovable property ofan enterprise.
Article 7
BUSINESS PROFITS
1.
The profits of an enterprise of a Contracting State
shall be taxable only in that Contracting State unless theenterprise carries on business in the other Contracting
State through a permanent establishment situated therein.
If the enterprise carries on business as aforesaid, theprofits of the enterprise may be taxed in that other
Contracting State but only so much of them as is
attributable to that permanent establishment.
2.
Subject to the provisions of paragraph 3 of this
Article, where an enterprise of a Contracting State carries
on business in the other Contracting State through apermanent establishment situated therein, there shall ineach Contracting State be attributed to that permanentestablishment the profits which it might be expected tomake if it were a distinct and separate enterprise engaged
in the same or similar activities under the same or similar
conditions and dealing wholly independently with theenterprise of which it is a permanent establishment.
3.
In determining the profits of a permanentestablishment, there shall be allowed as deductions
expenses which are incurred for the purposes of thepermanent establishment, including executive and generaladministrative expenses so incurred, whether in theContracting State in which the permanent establishment issituated or elsewhere.

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4.
Insofar as it has been customary in a Contracting
State to determine the profits to be attributed to apermanent establishment on the basis of an apportionment of
the total profits of the enterprise to its various parts,
nothing in paragraph 2 of this Article shall preclude thatContracting State from determining the profits to be taxedby such an apportionment as may be customary; the method ofapportionment adopted shall, however, be such that theresult shall be in accordance with the principles containedin this Article.
5.
No profits shall be attributed to a permanentestablishment by reason of the mere purchase by thatpermanent establishment of goods or merchandise for theenterprise.
6.
For the purposes of the preceding paragraphs of this
Article, the profits to be attributed to the permanentestablishment shall be determined by the same method year
by year unless there is good and sufficient reason to thecontrary.
7.
Where profits include items of income which are dealt
with separately in other Articles of this Convention, thenthe provisions of those Articles shall not be affected by
the provisions of this Article.
Article 8
SHIPPING AND AIR TRANSPORT
1.
Profits of an enterprise of a Contracting State fromthe operation of ships or aircraft in international traffic
shall be taxable only in that Contracting State.
2.
Notwithstanding the provisions of Article 2 of thisConvention, an enterprise of a Contracting State shall be
exempt in respect of its carrying on the operation of ships
or aircraft in international traffic from, in the case ofan enterprise of Russia, the enterprise tax of Japan and,in the case of an enterprise of Japan, any tax similar to
the enterprise tax of Japan which is imposed after the dateof signature of this Convention in Russia.
3.
For the purpose of this Article, profits of anenterprise from the operation of ships or aircraft ininternational traffic shall include profits from a rental
on a bareboat basis of ships or aircraft where such rental
is incidental to the operation of ships or aircraft ininternational traffic carried on by the enterprise.

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4.
The provisions of the preceding paragraphs of this
Article shall also apply to profits from the participation
in a pool, a joint business or an international operating
agency.
Article 9
ASSOCIATED ENTERPRISES
1.

Where
(a)

an enterprise of a Contracting State participates
directly or indirectly in the management, control
or capital of an enterprise of the other
Contracting State, or(b)

the same persons participate directly or
indirectly in the management, control or capitalof an enterprise of a Contracting State and an
enterprise of the other Contracting State,

and in either case conditions are made or imposed between
the two enterprises in their commercial or financial
relations which differ from those which would be madebetween independent enterprises, then any profits which
would, but for those conditions, have accrued to one of theenterprises, but, by reason of those conditions, have notso accrued, may be included in the profits of thatenterprise and taxed accordingly.
2.
Where a Contracting State includes in the profits ofan enterprise of that Contracting State - and taxes
accordingly - profits on which an enterprise of the other
Contracting State has been charged to tax in that other
Contracting State and the profits so included are profits
which would have accrued to the enterprise of the firstmentioned 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 tothe amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to theother provisions of this Convention and the competentauthorities of the Contracting States shall if necessary
consult each other.

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3.
Notwithstanding the provisions of paragraph 1 of this
Article, a Contracting State shall not change the profits
of an enterprise of that Contracting State in thecircumstances referred to in that paragraph after ten years
from the end of the taxable year in which the profits thatwould be subjected to such change would, but for theconditions referred to in that paragraph, have accrued tothat enterprise. The provisions of this paragraph shallnot apply in the case of fraud or wilful default.
Article 10
DIVIDENDS
1.
Dividends paid by a company which is a resident of aContracting State to a resident of the other Contracting
State may be taxed in that other Contracting State.
2.
However, dividends paid by a company which is a
resident of a Contracting State may also be taxed in thatContracting State according to the laws of that Contracting
State, but if the beneficial owner of the dividends is a
resident of the other Contracting State, the tax so charged
shall not exceed:(a)5 per cent of the gross amount of the dividends
if the beneficial owner is a company which has
owned directly at least 15 per cent of the voting
power of the company paying the dividends for theperiod of 365 days ending on the date on which
entitlement to the dividends is determined;(b)

10 per cent of the gross amount of the dividends
in all other cases.

3.
Notwithstanding the provisions of paragraph 2 of this
Article, dividends paid by a company which is a resident ofa Contracting State shall be taxable only in the other
Contracting State if the beneficial owner of the dividends
is a pension fund which is a resident of that other
Contracting State, provided that such dividends are derived
from the activities referred to in clause (ii) of
subparagraph (j) of paragraph 1 of Article 3 of thisConvention.

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4.
Notwithstanding the provisions of paragraphs 2 and 3of this Article, dividends derived by a resident of aContracting State from shares of a company or comparable
interests, such as interests in a partnership, trust orinvestment fund, may be taxed in the other Contracting
State according to the laws of that other Contracting Stateif, at any time during the 365 days preceding the paymentof the dividends, these shares or comparable interests
derived at least 50 per cent of their value directly or
indirectly from immovable property referred to in Article 6of this Convention and situated in that other Contracting
State. The tax so charged shall not exceed 15 per cent of
the gross amount of the dividends.
5.
The provisions of paragraphs 2, 3 and 4 of this
Article shall not affect the taxation of the company inrespect of the profits out of which the dividends are paid.
6.
The provisions of subparagraph (a) of paragraph 2 ofthis Article shall not apply in the case of dividends which
are deductible in computing the taxable income of thecompany paying the dividends in the Contracting State ofwhich that company is a resident.
7.
The term “dividends” as used in this Article means
income from shares or other rights, not being debt-claims,
participating in profits, as well as other income which is
subjected to the same taxation treatment as income fromshares by the laws of the Contracting State of which thecompany making the distribution is a resident.
8.
The provisions of paragraphs 1, 2, 3 and 4 of this
Article shall not apply if the beneficial owner of thedividends, being a resident of a Contracting State, carries
on business in the other Contracting State of which thecompany paying the dividends is a resident through apermanent establishment situated therein and the holding inrespect of which the dividends are paid is effectively
connected with such permanent establishment. In such casethe provisions of Article 7 of this Convention shall apply.

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9.
Where a company which is a resident of a Contracting
State derives profits or income from the other Contracting
State, that other Contracting State may not impose any tax
on the dividends paid by the company, except insofar as
such dividends are paid to a resident of that other
Contracting State or insofar as the holding in respect ofwhich the dividends are paid is effectively connected witha permanent establishment situated in that other
Contracting State, nor subject the company’s undistributed
profits to a tax on the company’s undistributed profits,even if the dividends paid or the undistributed profits
consist wholly or partly of profits or income arising insuch other Contracting State.
Article 11
INTEREST
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 of this
Article, interest arising in a Contracting State that isdetermined 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 other interest similar to such interest arising in aContracting State, may be taxed in that Contracting Stateaccording to the laws of that Contracting State, but if thebeneficial owner of the interest is a resident of the other
Contracting State, the tax so charged shall not exceed 10
per cent of 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 a right toparticipate in the debtor’s profits, and in particular,
income from government securities and income from bonds ordebentures, including premiums and prizes attaching to suchsecurities, bonds or debentures as well as other incomethat is subjected to the same taxation treatment as income
from money lent by the laws of the Contracting State inwhich the income arises. Income dealt with in Article 10of this Convention and penalty charges for late payment
shall not, however, be regarded as interest for the
purposes of this Article.

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4.
The provisions of paragraphs 1 and 2 of this Article
shall not apply if the beneficial owner of the interest,
being a resident of a Contracting State, carries on
business in the other Contracting State in which theinterest arises through a permanent establishment situatedtherein and the debt-claim in respect of which the interestis paid is effectively connected with such permanentestablishment. In such case the provisions of Article 7 ofthis Convention shall apply.
5.
Interest shall be deemed to arise in a Contracting
State when the payer is a resident of that Contracting
State. Where, however, the person paying the interest,
whether he is a resident of a Contracting State or not, hasin a Contracting State a permanent establishment inconnection with which the indebtedness on which theinterest is paid was incurred, and such interest is borneby such permanent establishment, then such interest shallbe deemed to arise in the Contracting State in which thepermanent establishment is situated.
6.
Where, by reason of a special relationship between thepayer and the beneficial owner or between both of them andsome other person, the amount of the interest, having
regard to the debt-claim for which it is paid, exceeds theamount which would have been agreed upon by the payer andthe beneficial owner in the absence of such relationship,
the provisions of this Article shall apply only to thelast-mentioned amount. In such case, the excess part ofthe payments shall remain taxable according to the laws ofeach Contracting State, due regard being had to the otherprovisions of this Convention.
Article 12
ROYALTIES
1.
Royalties 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.
The term “royalties” as used in this Article means
payments of any kind received as a consideration for theuse of, or the right to use, any copyright of literary,artistic or scientific work including cinematograph films,
or any patent, trade mark, design or model, plan, or secretformula or process, or for information concerningindustrial, commercial or scientific experience.

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3.
The provisions of paragraph 1 of this Article shallnot apply if the beneficial owner of the royalties, being a
resident of a Contracting State, carries on business in theother Contracting State in which the royalties arise
through a permanent establishment situated therein and theright or property in respect of which the royalties arepaid is effectively connected with such permanentestablishment. In such case the provisions of Article 7 ofthis Convention shall apply.
4.
Royalties shall be deemed to arise in a Contracting
State when the payer is a resident of that Contracting
State. Where, however, the person paying the royalties,
whether he is a resident of a Contracting State or not, hasin a Contracting State a permanent establishment inconnection with which the liability to pay the royalties
was incurred, and such royalties are borne by suchpermanent establishment, then such royalties shall bedeemed to arise in the Contracting State in which thepermanent establishment is situated.
5.
Where, by reason of a special relationship between thepayer and the beneficial owner or between both of them andsome other person, the amount of the royalties, having
regard to the use, right or information for which they arepaid, exceeds the amount which would have been agreed uponby the payer and the beneficial owner in the absence ofsuch relationship, the provisions of this Article shallapply only to the last-mentioned amount. In such case, theexcess part of the payments shall remain taxable according
to the laws of each Contracting State, due regard being had
to the other provisions of this Convention.
Article 13
CAPITAL GAINS
1.
Gains derived by a resident of a Contracting State
from the alienation of immovable property referred to in
Article 6 of this Convention and situated in the other
Contracting State may be taxed in that other Contracting
State.
2.
Gains from the alienation of any property, other thanimmovable property referred to in Article 6 of thisConvention, forming part of the business property of apermanent establishment which an enterprise of aContracting State has in the other Contracting State,including such gains from the alienation of such apermanent establishment (alone or with the wholeenterprise), may be taxed in that other Contracting State.

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3.
Gains derived by an enterprise of a Contracting State
from the alienation of ships or aircraft operated by thatenterprise in international traffic or any property, otherthan immovable property referred to in Article 6 of thisConvention, pertaining to the operation of such ships oraircraft shall be taxable only in that Contracting State.
4.
Gains derived by a resident of a Contracting State
from the alienation of shares of a company or comparable
interests, such as interests in a partnership, trust orinvestment fund, may be taxed in the other Contracting
State if, at any time during the 365 days preceding thealienation, these shares or comparable interests derived atleast 50 per cent of their value directly or indirectlyfrom immovable property, as defined in Article 6 of thisConvention, situated in that other Contracting State,
unless such shares or comparable interests are traded on arecognised stock exchange specified in subparagraph (b) ofparagraph 6 of Article 21 of this Convention and theresident and persons related to that resident own in theaggregate 5 per cent or less of the class of such shares orcomparable interests.
5.
Gains from the alienation of any property, other thanthat referred to in paragraphs 1, 2, 3 and 4 of this
Article, shall be taxable only in the Contracting State ofwhich the alienator is a resident.
Article 14
INCOME FROM EMPLOYMENT
1.
Subject to the provisions of Articles 15, 17 and 18 of
this Convention, salaries, wages and other similar
remuneration derived by a resident of a Contracting Statein respect of an employment shall be taxable only in thatContracting State unless the employment is exercised in theother Contracting State. If the employment is so
exercised, such remuneration as is derived therefrom may betaxed in that other Contracting State.
2.
Notwithstanding the provisions of paragraph 1 of this
Article, remuneration derived by a resident of aContracting State in respect of an employment exercised in
the other Contracting State shall be taxable only in thefirst-mentioned Contracting State if:(a)the recipient is present in the other Contracting
State for a period or periods not exceeding in
the aggregate 183 days in any twelve month period
commencing or ending in the taxable year
concerned, and- 17 -

(b)the remuneration is paid by, or on behalf of, anemployer who is not a resident of the other
Contracting State, and(c)the remuneration is not borne by a permanentestablishment which the employer has in the other
Contracting State.

3.
Notwithstanding the preceding provisions of this
Article, remuneration derived in respect of an employment
exercised aboard a ship or aircraft operated ininternational traffic by an enterprise of a Contracting
State may be taxed in that Contracting State.
Article 15
DIRECTORS’ FEES
Directors’ fees and other similar payments derived bya resident of a Contracting State in his capacity as amember of the board of directors, or of a similar organ, of
a company which is a resident of the other Contracting
State may be taxed in that other Contracting State.
Article 16
ENTERTAINERS AND SPORTSPERSONS
1.
Notwithstanding the provisions of Article 14 of thisConvention, income derived by a resident of a Contracting
State as an entertainer, such as a theatre, motion picture,radio or television artiste, or a musician, or as asportsperson, from that resident’s personal activities assuch exercised in the other Contracting State, may be taxed
in that other Contracting State.
2.
Where income in respect of personal activities
exercised by an entertainer or a sportsperson acting as
such accrues not to the entertainer or sportsperson but toanother person, that income may, notwithstanding theprovisions of Article 14 of this Convention, be taxed in
the Contracting State in which the activities of theentertainer or sportsperson are exercised.

- 18 -

Article 17
PENSIONS
Subject to the provisions of paragraph 2 of Article 18of this Convention, pensions and other similar remuneration
beneficially owned by a resident of a Contracting State
shall be taxable only in that Contracting State unless suchpensions and other similar remuneration arise in the other
Contracting State. If such pensions and other similar
remuneration so arise, such pensions and other similar
remuneration may also be taxed in that other Contracting
State.
Article 18
GOVERNMENT SERVICE
1.

2.

(a)

Salaries, wages and other similar remuneration
paid by a Contracting State or a subdivision or
local authority thereof to an individual inrespect of services rendered to that Contracting
State or subdivision or local authority shall betaxable only in that Contracting State.

(b)

However, such salaries, wages and other similar
remuneration shall be taxable only in the other
Contracting State if the services are rendered inthat other Contracting State and the individual
is a resident of that other Contracting State
who:
(i)

is a national of that other Contracting
State; or(ii)

did not become a resident of that other
Contracting State solely for the purpose of
rendering the services.

(a)

Notwithstanding the provisions of paragraph 1 ofthis Article, pensions and other similar
remuneration paid by, or out of funds which are
created by or to which contributions are made by,
a Contracting State or a subdivision or local
authority thereof to an individual in respect ofservices rendered to that Contracting State or
subdivision or local authority shall be taxable
only in that Contracting State.

(b)

However, such pensions and other similar
remuneration shall be taxable only in the other
Contracting State if the individual is a residentof, and a national of, that other Contracting
State.

- 19 -

3.
The provisions of Articles 14, 15, 16 and 17 of thisConvention shall apply to salaries, wages, pensions, andother similar remuneration in respect of services rendered
in connection with a business carried on by a Contracting
State or a subdivision or local authority thereof.
Article 19
STUDENTS
Payments which a student or business apprentice who isor was immediately before visiting a Contracting State aresident of the other Contracting State and who is present
in the first-mentioned Contracting State solely for the
purpose of his education or training receives for the
purpose of his maintenance, education or training shall not
be taxed in that Contracting State, provided that suchpayments arise from sources outside that Contracting State.
The exemption provided by this Article shall apply to abusiness apprentice only for a period not exceeding one
year from the date on which he first begins his training inthat Contracting State.
Article 20
OTHER INCOME
1.
Items of income beneficially owned by a resident of aContracting State, wherever arising, not dealt with in theforegoing Articles of this Convention shall be taxable onlyin that Contracting State.
2.
The provisions of paragraph 1 of this Article shallnot apply to income, other than income from immovable
property as defined in paragraph 2 of Article 6 of thisConvention, if the beneficial owner of such income, being a
resident of a Contracting State, carries on business in theother Contracting State through a permanent establishment
situated therein and the right or property in respect ofwhich the income is paid is effectively connected with suchpermanent establishment. In such case the provisions ofArticle 7 of this Convention shall apply.
3.
Notwithstanding the provisions of paragraphs 1 and 2of this Article, items of income of a resident of aContracting State not dealt with in the foregoing Articlesof this Convention and arising in the other Contracting
State may also be taxed in that other Contracting State.

- 20 -

Article 21
ENTITLEMENT TO BENEFITS
1.
Except as otherwise provided in paragraphs 3, 4 and 5of this Article, a resident of a Contracting State shallnot be entitled to a benefit that would otherwise beaccorded by the provisions of paragraph 3 of Article 10,paragraph 1 of Article 11 or paragraph 1 of Article 12 ofthis Convention, unless such resident is a qualified person
as defined in paragraph 2 of this Article at the time thatthe benefit would be accorded.
2.
A resident of a Contracting State shall be a qualified
person at a time when a benefit would otherwise be accordedby the provisions referred to in paragraph 1 of this
Article if, at that time, the resident is:(a)an individual;(b)that Contracting State, any subdivision or local
authority thereof, or an agency or
instrumentality of such Contracting State,subdivision or local authority;(c)a company or other entity, if the principal classof its shares is regularly traded on one or more
recognised stock exchanges;(d)a pension fund, if, at the beginning of thetaxable year for which the claim to the benefit
is made, at least 50 per cent of its
beneficiaries, members or participants areindividuals who are residents of either
Contracting State; or(e)a person other than an individual, if, on atleast half of the days of any twelve month periodthat includes the time when the benefit would
otherwise be accorded, persons that are residentsof that Contracting State and that are entitledto benefits referred to in paragraph 1 of this
Article under subparagraph (a), (b), (c) or (d)of this paragraph own, directly or indirectly, atleast 50 per cent of the shares of the person.

3.
A resident of a Contracting State that is not aqualified person pursuant to the provisions of paragraph 2of this Article shall also be entitled to a benefit thatwould otherwise be accorded by the provisions of paragraph
3 of Article 10, paragraph 1 of Article 11 or paragraph 1
of Article 12 of this Convention with respect to an item ofincome described in the respective paragraph if:- 21 -

4.

(a)in the case of a pension fund, at the beginningof the taxable year for which the claim to thebenefit is made, at least 75 per cent of its
beneficiaries, members or participants areindividuals who are equivalent beneficiaries; or(b)in all other cases, on at least half of the daysof any twelve month period that includes the time
when the benefit would otherwise be accorded,
persons that are equivalent beneficiaries own,
directly or indirectly, at least 75 per cent of
the shares of the resident.

(a)

A resident of a Contracting State shall beentitled to a benefit that would otherwise beaccorded by the provisions of paragraph 3 ofArticle 10, paragraph 1 of Article 11 orparagraph 1 of Article 12 of this Convention withrespect to an item of income described in therespective paragraph that is derived from theother Contracting State, regardless of whether
the resident is a qualified person, if theresident is engaged in a business activity in thefirst-mentioned Contracting State, and the income
derived from the other Contracting State emanates
from, or is incidental to, that businessactivity. For purposes of this paragraph, theterm “a business activity” shall not include thefollowing activities or any combination thereof:(i)

operating as a holding company;(ii)

providing overall supervision oradministration of a group of companies;(iii)

providing group financing (including cash
pooling); or(iv)

making or managing investments, unless these
activities are carried on by a bank,insurance company or registered securities
dealer in the ordinary course of its
business as such.

- 22 -

(b)If a resident of a Contracting State derives anitem of income from a business activity conductedby that resident in the other Contracting Stateor derives an item of income arising in the other
Contracting State from a connected person, theconditions described in subparagraph (a) of thisparagraph shall be considered to be satisfied
with respect to such item of income only if thebusiness activity carried on by the resident in
the first-mentioned Contracting State to which
the item of income is related is substantial in
relation to the same business activity or acomplementary business activity carried on by theresident or such connected person in the other
Contracting State. Whether a business activity
is substantial for the purposes of thissubparagraph shall be determined based on all thefacts and circumstances.

(c)

For purposes of applying this paragraph, businessactivities conducted by connected persons withrespect to a resident of a Contracting State
shall be deemed to be conducted by such resident.

5.
If a resident of a Contracting State is neither aqualified person pursuant to the provisions of paragraph 2of this Article, nor entitled to benefits under paragraph 3
or 4 of this Article, the competent authority of the other
Contracting State may, nevertheless, grant the benefits
accorded by the provisions of paragraph 3 of Article 10,paragraph 1 of Article 11 or paragraph 1 of Article 12 ofthis Convention with respect to an item of income describedin the respective paragraph, taking into account the object
and purpose of this Convention, but only if such resident
demonstrates to the satisfaction of such competentauthority that neither its establishment, acquisition or
maintenance, nor the conduct of its operations, had as oneof its principal purposes the obtaining of such benefits.
Before either granting or denying a request made under thisparagraph by a resident of a Contracting State, thecompetent authority of the other Contracting State to which
the request has been made shall consult with the competentauthority of the first-mentioned Contracting State.

- 23 -

6.
For the purposes of the preceding paragraphs of this
Article:(a)the term “principal class of shares” means theclass or classes of shares of a company which
represents in the aggregate the majority of theaggregate vote and value of the company or theclass or classes of beneficial interests of anentity which represents in the aggregate themajority of the aggregate vote and value of theentity;(b)

the term “recognised stock exchange” means:(i)any stock exchange established and regulated
as such under the laws of either Contracting
State; and(ii)

any other stock exchange agreed upon by thecompetent authorities of the Contracting
States;(c)

the term “equivalent beneficiary” means any
person who would be entitled to benefits withrespect to an item of income accorded by aContracting State under the domestic law of thatContracting State, this Convention or any otherinternational instrument which are equivalent tobenefits to be accorded to that item of income
under the provisions of paragraph 3 of Article
10, paragraph 1 of Article 11 or paragraph 1 of
Article 12 of this Convention;(d)with respect to entities that are not companies,
the term “shares” means interests that arecomparable to shares;(e)

two persons shall be “connected persons” if one
owns, directly or indirectly, at least 50 per
cent of the beneficial interest in the other (or,in the case of a company, at least 50 per cent of
the aggregate vote and value of the company’s
shares) or another person owns, directly or
indirectly, at least 50 per cent of thebeneficial interest (or, in the case of acompany, at least 50 per cent of the aggregate
vote and value of the company’s shares) in each
person; in any case, a person shall be connected
to another if, based on all the relevant facts
and circumstances, one has control of the otheror both are under the control of the same person
or persons.

- 24 -

7.

(a)Where:(i)an enterprise of a Contracting State derives
income from the other Contracting State andthe first-mentioned Contracting State treatssuch income as attributable to a permanentestablishment of the enterprise situated ina third jurisdiction; and(ii)

the profits attributable to that permanentestablishment are exempt from tax in thefirst-mentioned Contracting State,

the benefits under this Convention shall not
apply to any item of income on which the tax inthe third jurisdiction is less than 60 per centof the tax that would be imposed in the firstmentioned Contracting State on that item ofincome if that permanent establishment weresituated in the first-mentioned Contracting
State. In such a case, any income to which theprovisions of this paragraph apply shall remaintaxable according to the domestic law of theother Contracting State, notwithstanding anyother provisions of this Convention.
(b)

The provisions of subparagraph (a) of thisparagraph shall not apply if the income derived
from the other Contracting State described inthat subparagraph is derived in connection withor is incidental to the active conduct of abusiness carried on through the permanentestablishment (other than the business of making,managing or simply holding investments for theenterprise’s own account, unless these activities
are banking, insurance or securities activities
carried on by a bank, insurance enterprise orregistered securities dealer, respectively).

- 25 -

(c)If the benefits under this Convention are denied
pursuant to the provisions of subparagraph (a) of
this paragraph with respect to an item of income
derived by a resident of a Contracting State, thecompetent authority of the other Contracting
State may, nevertheless, grant these benefits
with respect to that item of income if, in
response to a request by such resident, suchcompetent authority determines that granting such
benefits is justified in light of the reasons
such resident did not satisfy the requirements ofthe subparagraphs (a) and (b) of this paragraph.
The competent authority of the Contracting Stateto which a request has been made under thepreceding sentence by a resident of the other
Contracting State shall consult with thecompetent authority of that other Contracting
State before either granting or denying therequest.

8.
Notwithstanding the other provisions of thisConvention, a benefit under this Convention shall not be
granted in respect of an item of income if it is reasonable
to conclude, having regard to all relevant facts andcircumstances, that obtaining that benefit was one of theprincipal purposes of any arrangement or transaction that
resulted directly or indirectly in that benefit, unless it
is established that granting that benefit in thesecircumstances would be in accordance with the object andpurpose of the relevant provisions of this Convention.
Article 22
ELIMINATION OF DOUBLE TAXATION
1.
Subject to the provisions of the laws of Japan
regarding the allowance as a credit against Japanese tax oftax payable in any country other than Japan, where aresident of Japan derives income from Russia which may betaxed in Russia in accordance with the provisions of thisConvention, the amount of Russian tax payable in respect ofthat income shall be allowed as a credit against theJapanese tax imposed on that resident. The amount ofcredit, however, shall not exceed the amount of theJapanese tax which is appropriate to that income.
2.
Where a resident of Russia derives income from Japan,
the amount of tax on that income payable in Japan inaccordance with the provisions of this Convention shall beallowed to be credited against the Russian tax imposed onthat resident. The amount of credit, however, shall not
exceed the amount of the Russian tax on that income
computed in accordance with the taxation laws andregulations of Russia.

- 26 -

Article 23
NON-DISCRIMINATION
1.
Nationals of a Contracting State shall not be
subjected in the other Contracting State to any taxation or
any requirement connected therewith, which is other or moreburdensome than the taxation and connected requirements towhich nationals of that other Contracting State in the same
circumstances, in particular with respect to residence, areor may be subjected. The provisions of this paragraphshall, notwithstanding the provisions of Article 1 of thisConvention, also apply to persons who are not residents of
one or both of the Contracting States.
2.
The taxation on a permanent establishment which anenterprise of a Contracting State has in the other
Contracting State shall not be less favourably levied inthat other Contracting State than the taxation levied onenterprises of that other Contracting State carrying on thesame activities. The provisions of this paragraph shallnot be construed as obliging a Contracting State to grant
to residents of the other Contracting State any personal
allowances, reliefs and reductions for taxation purposes on
account of civil status or family responsibilities which it
grants to its own residents.
3.
Except where the provisions of paragraph 1 of Article
9, paragraph 6 of Article 11, or paragraph 5 of Article 12of this Convention apply, interest, royalties and otherdisbursements paid by an enterprise of a Contracting Stateto a resident of the other Contracting State shall, for the
purpose of determining the taxable profits of suchenterprise, be deductible under the same conditions as if
they had been paid to a resident of the first-mentioned
Contracting State.
4.
Enterprises of a Contracting State, the capital ofwhich is wholly or partly owned or controlled, directly or
indirectly, by one or more residents of the other
Contracting State, shall not be subjected in the firstmentioned Contracting State to any taxation or any
requirement connected therewith which is other or moreburdensome than the taxation and connected requirements towhich other similar enterprises of the first-mentioned
Contracting State are or may be subjected.
5.
The provisions of this Article shall, notwithstanding
the provisions of Article 2 of this Convention, apply totaxes of every kind and description imposed on behalf of aContracting State or of its subdivisions or local
authorities.

- 27 -

Article 24
MUTUAL AGREEMENT PROCEDURE
1.
Where a person considers that the actions of one orboth of the Contracting States result or will result for
him in taxation not in accordance with the provisions of
this Convention, he may, irrespective of the remedies
provided by the domestic law of those Contracting States,
present his case to the competent authority of either
Contracting State. The case must be presented within three
years from the first notification of the action resulting
in taxation not in accordance with the provisions of thisConvention.
2.
The competent authority shall endeavour, if theobjection appears to it to be justified and if it is notitself able to arrive at a satisfactory solution, toresolve the case by mutual agreement with the competentauthority of the other Contracting State, with a view tothe avoidance of taxation which is not in accordance withthe provisions of this Convention. Any agreement reachedshall be implemented notwithstanding any time limits in thedomestic law of the Contracting States.
3.
The competent authorities of the Contracting Statesshall endeavour to resolve by mutual agreement any
difficulties or doubts arising as to the interpretation orapplication of this Convention. They may also consult
together for the elimination of double taxation in cases
not provided for in this Convention.
4.
The competent authorities of the Contracting States
may communicate with each other directly, including througha joint commission consisting of themselves or theirrepresentatives, for the purpose of reaching an agreementin the sense of the preceding paragraphs of this Article.
Article 25
EXCHANGE OF INFORMATION
1.
The competent authorities of the Contracting Statesshall exchange such information as is foreseeably relevant
for carrying out the provisions of this Convention or to
the administration or enforcement of the domestic laws
concerning taxes of every kind and description imposed onbehalf of the Contracting States, or of their subdivisions
or local authorities, insofar as the taxation thereunder is
not contrary to this Convention. The exchange of
information is not restricted by Articles 1 and 2 of thisConvention.

- 28 -

2.
Any information received under paragraph 1 of this
Article by a Contracting State shall be treated as secretin the same manner as information obtained under thedomestic laws of that Contracting State and shall be
disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment orcollection of, the enforcement or prosecution in respectof, the determination of appeals in relation to the taxes
referred to in paragraph 1 of this Article, or theoversight of the above. Such persons or authorities shalluse the information 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 forother purposes when such information may be used for suchother purposes under the laws of both Contracting States
and the competent authority of the Contracting Statesupplying the information authorises such use.
3.
In no case shall the provisions of paragraphs 1 and 2of this Article be construed so as to impose on aContracting State the obligation:(a)

to carry out administrative measures at variancewith the laws and administrative practice of thator of the other Contracting State;(b)to supply information which is not obtainable
under the laws or in the normal course of theadministration of that or of the other
Contracting State;(c)to supply information which would disclose any
trade, business, industrial, commercial or
professional secret or trade process, orinformation the disclosure of which would becontrary to public policy.

4.
If information is requested by a Contracting State inaccordance with this Article, the other Contracting State
shall use its information gathering measures to obtain therequested information, even though that other Contracting
State may not need such information for its own tax
purposes. The obligation contained in the preceding
sentence is subject to the limitations of paragraph 3 ofthis Article but in no case shall such limitations beconstrued to permit a Contracting State to decline tosupply information solely because it has no domestic
interest in such information.

- 29 -

5.
In no case shall the provisions of paragraph 3 of this
Article be construed to permit a Contracting State to
decline to supply information solely because theinformation is held by a bank, other financial institution,
nominee or person acting in an agency or a fiduciary
capacity or because it relates to ownership interests in aperson.
Article 26
ASSISTANCE IN THE COLLECTION OF TAXES
1.
The Contracting States shall lend assistance to eachother in the collection of revenue claims. This assistanceis not restricted by Articles 1 and 2 of this Convention.
The competent authorities of the Contracting States may bymutual agreement settle the mode of application of this
Article.
2.
The term “revenue claim” as used in this Article means
an amount owed in respect of the following taxes, insofar
as the taxation thereunder is not contrary to thisConvention or any other instrument to which the Contracting
States are parties, as well as interest, administrative
penalties and costs of collection or conservancy related tosuch amount:
(a)

(b)

in the case of Japan:(i)the taxes referred to in clauses (i) to (iv)of subparagraph (a) of paragraph 3 ofArticle 2 of this Convention;(ii)

the special corporation tax forreconstruction;(iii)

the consumption tax;(iv)

the local consumption tax;(v)

the inheritance tax; and(vi)

the gift tax;

in the case of Russia;(i)the taxes referred to subparagraph (b) ofparagraph 3 of Article 2 of this Convention;(ii)

the value added tax;(iii)

the tax on property of enterprises;- 30 -

(iv)the tax on property of individuals;(v)

the vehicle tax; and(vi)

the land tax;(c)

any other tax as may be agreed upon from time totime between the Governments of the Contracting
States through an exchange of diplomatic notes;(d)any identical or substantially similar taxes thatare imposed after the date of signature of thisConvention in addition to, or in place of, thetaxes covered by subparagraph (a), (b) or (c) of
this paragraph.

3.
When a revenue claim of a Contracting State isenforceable under the laws of that Contracting State and is
owed by a person who, at that time, cannot, under the lawsof that Contracting State, prevent its collection, thatrevenue claim shall, at the request of the competentauthority of that Contracting State, be accepted for
purposes of collection by the competent authority of theother Contracting State. That revenue claim shall becollected by that other Contracting State in accordancewith the provisions of its laws applicable to theenforcement and collection of its own taxes as if therevenue claim were a revenue claim of that other
Contracting State that met the conditions allowing that
other Contracting State to make a request under thisparagraph.
4.
When a revenue claim of a Contracting State is a claim
in respect of which that Contracting State may, under its
law, take measures of conservancy with a view to ensure its
collection, that revenue claim shall, at the request of thecompetent authority of that Contracting State, be acceptedfor purposes of taking measures of conservancy by thecompetent authority of the other Contracting State. Thatother Contracting State shall take measures of conservancy
in respect of that revenue claim in accordance with theprovisions of its laws as if the revenue claim were arevenue claim of that other Contracting State even if, at
the time when such measures are applied, the revenue claim
is not enforceable in the first-mentioned Contracting Stateor is owed by a person who has a right to prevent its
collection.

- 31 -

5.
Notwithstanding the provisions of paragraphs 3 and 4of this Article, a revenue claim accepted by the competentauthority of a Contracting State for purposes of paragraph
3 or 4 of this Article shall not, in that Contracting
State, be subject to the time limits or accorded any
priority applicable to a revenue claim under the laws ofthat Contracting State by reason of its nature as such. In
addition, a revenue claim accepted by the competentauthority of a Contracting State for the purposes ofparagraph 3 or 4 of this Article shall not, in thatContracting State, have any priority applicable to thatrevenue claim under the laws of the other Contracting
State.
6.
Acts carried out by a Contracting State in thecollection of a revenue claim accepted by the competentauthority of that Contracting State for purposes ofparagraph 3 or 4 of this Article which if they were carriedout by the other Contracting State would have the effect ofsuspending or interrupting the time limits applicable to
the revenue claim in accordance with the laws of that other
Contracting State shall have such effect under the laws ofthat other Contracting State. The competent authority of
the first-mentioned Contracting State shall inform thecompetent authority of the other Contracting State of
having carried out such acts.
7.
Proceedings with respect to the existence, validity or
the amount of a revenue claim of a Contracting State shallnot be brought before the courts or administrative bodiesof the other Contracting State.
8.
Where, at any time after a request has been made by
the competent authority of a Contracting State underparagraph 3 or 4 of this Article and before the other
Contracting State has collected and remitted the relevant
revenue claim to the first-mentioned Contracting State, therelevant revenue claim ceases to be(a)in the case of a request under paragraph 3 ofthis Article, a revenue claim of the firstmentioned Contracting State that is enforceable
under the laws of that Contracting State and is
owed by a person who, at that time, cannot, under
the laws of that Contracting State, prevent its
collection, or- 32 -

(b)in the case of a request under paragraph 4 ofthis Article, a revenue claim of the firstmentioned Contracting State in respect of whichthat Contracting State may, under its laws, takemeasures of conservancy with a view to ensure its
collection

the competent authority of the first-mentioned Contracting
State shall promptly notify the competent authority of theother Contracting State of that fact and, at the option of
the competent authority of the other Contracting State, thecompetent authority of the first-mentioned Contracting
State shall either suspend or withdraw its request.
9.
In no case shall the provisions of this Article beconstrued so as to impose on a Contracting State theobligation:(a)

to carry out administrative measures at variancewith the laws and administrative practice of thator of the other Contracting State;(b)

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

to provide assistance if the other Contracting
State has not pursued all reasonable measures ofcollection or conservancy, as the case may be,available under its laws or administrative
practice;(d)to provide assistance in those cases where theadministrative burden for that Contracting Stateis clearly disproportionate to the benefit to be
derived by the other Contracting State.

Article 27
MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS
Nothing in this Convention shall affect the fiscal
privileges of members of diplomatic missions or consular
posts under the general rules of international law or under
the provisions of special agreements.
Article 28
HEADINGS
The headings of the Articles of this Convention are
inserted for convenience of reference only and shall notaffect the interpretation of this Convention.

- 33 -

Article 29
ENTRY INTO FORCE
1.
This Convention shall be approved in accordance withthe legal 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 Convention shall have effect:(a)with respect to taxes levied on the basis of ataxable year, for taxes for any taxable years
beginning on or after 1 January in the calendar
year next following that in which this Convention
enters into force; and(b)with respect to taxes levied not on the basis ofa taxable year, for taxes levied on or after 1
January in the calendar year next following thatin which this Convention enters into force.

3.
Notwithstanding the provisions of paragraph 2 of this
Article, the provisions of Articles 25 and 26 of thisConvention shall have effect from the date of entry into
force of this Convention without regard to the date on
which the taxes are levied or the taxable year to which thetaxes relate.
4.
The Convention between the Government of Japan and theGovernment of the Union of Soviet Socialist Republics for
the Avoidance of Double Taxation with respect to Taxes on
Income, with Protocol, signed at Tokyo on 18 January, 1986
(hereinafter referred to as “the prior Convention”) shallbetween Japan and Russia cease to be applicable from thedate upon which this Convention applies in respect of thetaxes to which this Convention applies in accordance withthe provisions of paragraph 2 of this Article.
5.
Notwithstanding the entry into force of thisConvention, an individual who is a resident of either
Contracting State and entitled to the benefits of Article
17 of the prior Convention at the time of the entry into
force of this Convention shall continue to be entitled tosuch benefits until such time as the individual would haveceased to be entitled to such benefits if the priorConvention had remained in force.
6.
The prior Convention shall between Japan and Russia
terminate on the last date on which it applies inaccordance with the provisions of the preceding paragraphsof this Article.

- 34 -

Article 30
TERMINATIONThis Convention shall remain in force until terminatedby a Contracting State. Either Contracting State may
terminate this Convention by giving notice of termination
through diplomatic channels to the other Contracting Stateat least six months before the end of any calendar year
beginning after expiry of five years from the date of entry
into force of this Convention. In such event, thisConvention shall cease to have effect:(a)with respect to taxes levied on the basis of ataxable year, for taxes for any taxable years
beginning on or after 1 January in the calendar
year next following that in which the notice isgiven; and(b)with respect to taxes levied not on the basis ofa taxable year, for taxes levied on or after 1
January in the calendar year next following thatin which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly
authorised thereto by their respective Governments, havesigned this Convention.
DONE at Vladivostok this seventh day of September,2017 in duplicate, each in the Japanese, Russian andEnglish languages, all three texts being equally authentic.
In case of any divergence of interpretations, the English
text shall prevail.
For the Government of Japan:

For the Government of
the Russian Federation:ТРУНИН

上月豊久- 35 -PROTOCOLAt the moment of signing the Convention between the
Government of Japan and the Government of the RussianFederation for the elimination of double taxation withrespect to taxes on income and the prevention of tax
evasion and avoidance (hereinafter referred to as “theConvention”), the undersigned have agreed upon thefollowing provisions which shall form an integral part of
the Convention.
1.
With reference to Articles 10 and 13 of theConvention:

2.

(a)

It is understood that the term “investment fund”
as used in paragraph 4 of Article 10 andparagraph 4 of Article 13 of the Convention
includes mutual investment funds of Russia.

(b)

It is understood that the term “dividends” asdefined in paragraph 7 of Article 10 of theConvention includes any payments on units ofmutual investment funds of Russia.

(c)

For the purposes of subparagraphs (a) and (b) of
this paragraph, the term “mutual investment fundsof Russia” means investment funds which areestablished under the Federal Law “On Investments
Funds” (Law No. 156-FZ on 29 November, 2001),
including such as may be amended from time totime without changing the general principle
thereof.

With reference to Article 23 of the Convention:

It is understood that nothing in Article 23 of theConvention shall be construed as restricting theapplication of any of the following provisions:(a)in the case of Japan, Section 4-3 of Chapter II
and Sections 7-3, 7-4, 23 and 24 of Chapter III
of the Law on Special Measures Concerning
Taxation (Law No. 26 of 1957) of Japan;(b)in the case of Russia, Chapter 3.4 of the Part Iof the Tax Code of the Russian Federation (Law
No. 146-FZ on 31 July, 1998) and Articles 269 and309.1 of Chapter 25 of the Part II of the Tax
Code of the Russian Federation (Law No. 117-FZ on
5 August, 2000),- 36 -

including those as may be amended from time to time withoutchanging the general principle thereof.
3.

With reference to Article 24 of the Convention:

It is understood that in the event that with respect
to an agreement or convention for the avoidance of double
taxation concluded with a third jurisdiction after the dateof signature of the Convention, Russia agrees to include anarbitration provision in such agreement or convention, theGovernments of Japan and the Russian Federation will startnegotiations, as soon as possible, in view of concluding anamending protocol aiming at inserting an arbitration
provision into the Convention.
4.

With reference to Article 25 of the Convention:

It is understood that a Contracting State may decline
to supply information relating to confidential
communications between attorneys, solicitors or otheradmitted legal representatives in their role as such andtheir clients to the extent that the communications areprotected from disclosure under the domestic law of thatContracting State.
5.
Any document received under Article 25 of theConvention or a certificate of residence issued by thecompetent authority of a Contracting State shall not
require legalisation or apostille for the purposes of its
application in the other Contracting State, including its
use in the courts and administrative bodies.
IN WITNESS WHEREOF, the undersigned, being duly
authorised thereto by their respective Governments, havesigned this Protocol.
DONE at Vladivostok this seventh day of September,2017 in duplicate, each in the Japanese, Russian andEnglish languages, all three texts being equally authentic.
In case of any divergence of interpretations, the English
text shall prevail.
For the Government of Japan:

For the Government of
the Russian Federation:ТРУНИН

上月豊久- 37 -