ARTICLE 2

General Definitions

This article sets out definitions of certain of the basic terms used in the Convention. A number of important terms, however, are defined elsewhere in the Convention.

Any term used in the Convention which is not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of the State which is imposing the tax. However, in a case where a term has a different meaning under the laws of Japan and the United States or where the meaning under the laws of one or both of the States is not clear, the competent authorities may agree on a uniform definition. This is made clear in paragraph (2)(d) of Article 25 (relating to the mutual agreement procedure). While treaties in the past did not specify the power of the competent authorities-to resolve such differences in definitions, this power is nevertheless inherent in the authority set forth in the mutual agreement article of these treaties to resolve "difficulties or doubts".

This article defines geographical Japan to include all the territories in which the laws relating to Japanese tax are in force. The geographical United States is defined to mean the states thereof and the District of Columbia.

The terms “a Contracting State” and "the other Contracting State" are defined to mean the United States or Japan, as the context requires. Although the term "State" is not specifically defined, it means a National State, whether or not it refers in context to one of the Contracting States.

A Japanese corporation is defined as being a juridical person which has its head or main office in Japan. All corporations incorporated in Japan are required to have their head office in Japan.