The Tax Convention between Uzbekistan and Japan will take effect on October 17. The document of accession was signed in December last year by the Foreign Minister Abdulaziz Kamilov and Japanese Ambassador Extraordinary and Plenipotentiary to Uzbekistan Yoshinori Fujiyama, the press service of the Japanese Embassy said in a statement.

The document will eliminate double taxation of income received by Japanese or Uzbek companies and individuals in one of the countries.

"For example, income earned by a Japanese company in Uzbekistan will be taxed either in Japan, which is the 'country of permanent residence', or in Uzbekistan, which is the country where the income was made," the Embassy noted.

In Uzbekistan, the Convention will apply to income as of January 1, 2021, as well as taxes levied for each tax period starting from the next year.

The Convention will apply in Japan to taxes levied on the tax year: taxes for each tax period starting in January of the following year. In addition, the convention will apply to taxes levied on a non-taxable basis from 1 January 2021.

The provisions regarding the exchange of information and mutual assistance in the tax collection will apply from the date of the tax levied or from the date of entry into force of the document, regardless of the tax period.

"The convention will prevent international tax evasion and avoidance by eliminating double taxation in both countries, and will further promote investment and economic exchange," the statement concluded.