Japan, Ukraine to Revise Tax Treaty at Tokyo Conference; Govts Hope Treaty Encourages Japan Firms to Enter Ukraine Market

Yomiuri Shimbun file photo
Ukrainian President Volodymyr Zelenskyy, left, and Prime Minister Fumio Kishida shake hands in Hiroshima in May 2023.

Japan and Ukraine will discuss revising a bilateral tax treaty and reviewing an investment cooperation pact when the two countries meet for the Japan-Ukraine Conference for Promotion of Economic Growth and Reconstruction in Tokyo on Monday, according to a draft of a joint statement.

It is hoped that the revision and review will encourage Japanese companies to enter the Ukrainian market.

The revision of the tax treaty is expected to lower taxes imposed on Japanese companies in Ukraine, allowing those companies to be on equal footing with Western firms.

At the conference, the Japanese government intends to announce aid measures, which will be jointly implemented by both the private and public sectors in Ukraine.

The joint statement is expected to include promises that Japan will provide long-term assistance to help Ukraine’s economy and stability. It will also stipulate that the Japanese government will relax conditions for issuing business visas to Ukrainian company officials and set up a Japan External Trade Organization (JETRO) office in Kyiv.

The statement is also expected to urge the international community to offer assistance to Ukraine.

The current tax treaty is based on one signed by Japan and the then Soviet Union in 1986. The Japanese and Ukrainian governments have been holding talks to revise the treaty since March 2021.

The two governments are expected to sign the new tax treaty on Monday to coinside with the conference.