DoubleTaxationIndia – Japan tax treaty: residence, 183 days, rates
Convention between the Government of Japan and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at New Delhi on 7 March 1989; amended by the Protocols of 24 February 2006 and 11 December 2015)
- Signed: 07/03/1989
- In force since: 29/12/1989
- Official text
If both countries treat you as resident
The treaty sets no tie-breaker steps: if both countries treat you as resident, the tax authorities settle it by mutual agreement.
- Where by reason of paragraph 1 a person is a resident of both Contracting States, the competent authorities of the Contracting States shall determine by mutual agreement the Contracting State of which that person shall be deemed to be a resident for the purposes of the Convention. Article 4 contains no permanent home, centre of vital interests, habitual abode or nationality test. The MLI replaces the dual-residence rule only for persons other than individuals. Art. 4(2) India–Japan Convention (1989)
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 183 days in the tax year. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 18 |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6 |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 10(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2)–(4) |
| Royalties (copyright, licences) | Source country: at most 10%; the country of residence relieves double taxation. | Art. 12(2) |
| Technical, consulting, management services | Source country: at most 10%; the country of residence relieves double taxation. | Art. 12(2), (4) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 13 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 22(3) |
How double taxation is relieved
- India: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(2)
- Japan: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(3)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.