Latvia and Japan sign agreement intended to promote investment and make investors' work easier

RIGA - Latvian Finance Minister Dana Reizniece-Ozola (Greens/Farmers) and Motome Takisawa, Parliamentary Vice-Minister for Foreign Affairs of Japan, today signed a convention for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance, BNS was told at the Finance Ministry.

The agreement, which was signed in Tokyo during Reizniece-Ozola's visit to Japan, is intended to promote business exchange, investment attraction and make investors' work easier, the ministry's representatives said.

The ministry's representatives explained that the convention for the avoidance of double taxation is one of the key international agreements aimed at promoting economic cooperation.

Its main purpose is to eliminate double taxation arising between the two countries by clarifying the scope of taxable income in the two countries. The convention will also enable the tax authorities of the two countries to consult each other on taxation not in accordance with the provisions of this convention, exchange information concerning tax matters and mutually lend assistance in the collection of tax claims.

It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Convention promotes further mutual investments and economic exchanges between the two countries.