NEW TAX AGREEMENT WITH THE KYRGYZ REPUBLIC AGREED IN PRINCIPLE

TOKYO, Oct. 15 -- Ministry of Economy, Trade and Industry of Japan issued the following news release:

1. The Government of Japan and the Government of the Kyrgyz Republic have agreed in principle on the new Agreement replacing the existing Tax Convention (Convention between the Government of Japan and the Government of the Union of Soviet Socialist Republics for the Avoidance of Double Taxation with respect to Taxes on Income) which entered into force in 1986.

2. The new Agreement reinforces or introduces provisions for clarifying the scope of taxation in the two countries, eliminating international double taxation and preventing tax evasion and avoidance, and is expected to promote further mutual investments and economic exchanges between the two countries.

3. The new Agreement will be signed after the necessary internal procedures have been completed by each of the two Governments. Thereafter, the Agreement will enter into force after the completion of the domestic procedures in each of the two countries (in Japan, approval by the Diet is necessary).

* This new Agreement will not affect the existing Tax Convention applicable between Japan and the countries other than the Kyrgyz Republic.

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