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Japanese DTA
An agreement has been reached in principle between Japan and the UK in respect of the new double taxation convention to replace the convention. The proposed new treaty, while taking the Organisation for Economic Co-operation and Development model as a basis, comprehensively revises the current convention and, reflecting the importance of the economic relationship between the two countries, aims to promote investment between them as well as to prevent tax avoidance. The proposed new treaty would substantially reduce the withholding taxes imposed on dividends, interest and royalties paid between the two countries. In particular, it would eliminate the withholding taxes on royalties, certain inter-company dividends, and certain interest.
After the Governments of the two countries have completed the necessary procedures, the new treaty will be signed and become ready for submission to the Parliaments. The new treaty will enter into force after it has been approved by the Parliaments.
HMRC news release dated 1 July 2005.
Company cars
The advisory fuel rates for company cars have been revised from 1 July 2005 as follows:
|
Engine size |
Petrol |
Diesel |
LPG |
|
1,400cc or less |
10p |
9p |
7p |
|
1,401cc to 2,000cc |
12p |
9p |
8p |
|
Over 2,000cc |
16p |
13p |
10p |
