ARTICLE 29

Termination

The Convention will continue in effect indefinitely, but may be terminated by either State at any time after 5 years from the date on which the Convention entered into force. A State seeking to terminate the Convention must give notice at least 6 months before the end of the calendar year through diplomatic channels.

If the Convention is terminated, such termination will be effective:

In the case of Japan:

For income derived during any taxable year beginning on or after January 1 next following the year in which the notice of termination is given.

In the case of the United States:

1. As respects taxes withheld at source on dividends, interest, royalties, and similar payments on January 1 next following the expiration of the 6-month period; and

2. As respects other taxes on income, for any taxable year beginning on or after January 1 next following the expiration of the 6-month period.

In the case of Japan, no distinction is made with respect to the termination date for purposes of withholding taxes on dividends, interest, royalties, and similar payments, because, as discussed with regard to Article 28 (relating to entry into force), foreign recipients of such payments are treated under Japanese internal law as having a taxable year beginning on January 1.