Japan - Saudi Arabia BIT (2013)
Previous page

1. The provisions of Article 2 do not prevent either Contracting Party from differentiating between treatments accorded in accordance with its legislation relating to taxes.

2. Article 3 shall not be construed so as to oblige a Contracting Party to extend to investors of the other Contracting Party special tax advantages accorded to investors of a non-Contracting Party, on the basis of reciprocity with the non-Contracting Party or by virtue of any agreement relating to taxation in force between the former Contracting Party and the non-Contracting Party.

Article 19.

1. The Contracting Parties shall establish an Investment Working Group (hereinafter referred to as "the Group") within the framework of the joint committee established in accordance with provisions of Article 6 of the Agreement on Economic and Technical Cooperation Between the Government of Japan and the Government of the Kingdom of Saudi Arabia, done at Tokyo, March 1, 1975, with a view to accomplishing the objectives of this Agreement. The main function of the Group shall be to discuss any investment-related matters concerning this Agreement. Detailed functions of the Group shall be agreed upon by the Contracting Parties.

2. The Group shall meet as necessary at the request of either Contracting Party.

Article 20.

The Contracting Parties shall consult each other within five years after the entry into force of this Agreement for the purpose of reviewing the Agreement, with a view to further promoting progressive liberalization of investment.

Article 21.

The Contracting Parties recognize that it is inappropriate to encourage investment by investors of the other Contracting Party by relaxing environmental measures. To this effect each Contracting Party should not waive or otherwise derogate from such environmental measures as an encouragement for the establishment, acquisition or expansion of investments by investors of the other Contracting Party.

Article 22.

1. A Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is an enterprise of the other Contracting Party and to its investments if the enterprise is owned or controlled by an investor of a non-Contracting Party and the denying Contracting Party:

(a) does not maintain diplomatic relations with the non-Contracting Party; or

(b) adopts or maintains measures with respect to the non-Contracting Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Agreement were accorded to the enterprise or to its investments.

2. Subject to prior notification and consultation, a Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is an enterprise of the other Contracting Party and to its investments if the enterprise is owned or controlled by an investor of a non-Contracting Party and the enterprise has no substantial business activities in the other Contracting Party.

Article 23.

1. This Agreement shall enter into force on the thirtieth day after the date of exchange of diplomatic notes informing each other that their respective legal procedures necessary for the entry into force of this Agreement have been completed. It shall remain in force for a period of ten years after its entry into force and shall continue in force unless terminated as provided in paragraph 2. This Agreement shall also apply to all investments of investors of either Contracting Party acquired in the other Contracting Party in accordance with the applicable legislation of that other Contracting Party prior to the entry into force of this Agreement.

2. A Contracting Party may, by giving one year's advance notice in writing to the other Contracting Party, terminate this Agreement at the end of the initial ten year period or at any time thereafter.

3. In respect of investments acquired prior to the date of termination of this Agreement, the provisions of this Agreement shall continue to be effective for a period of ten years from the date of termination of this Agreement.

4. This Agreement shall not apply to claims arising out of events which occurred, or to claims which had been settled, prior to its entry into force.

Conclusion

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.

DONE in duplicate at Jeddah, on this thirtieth day of April, 2013, in the Japanese, Arabic and English languages, all texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.

FOR JAPAN:

FOR THE KINGDOM OF SAUDI ARABIA:

Al-Othman

Previous page Page 2