Internal Revenue Bulletin 2021-13 (PDF rendition): IRS Announcements

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HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Bulletin No. 2021–13
March 29, 2021
TAX CONVENTIONS
Announcement 2021-5, page 965.
The competent authorities of the United States of Ameri-
ca and Japan have entered into an arrangement regarding
the implementation of the arbitration process provided for
in paragraphs 5, 6, and 7 of Article 25 of the Convention
between the Government of Japan and the Government of
the United States of America for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with respect to
Taxes on Income.
Finding Lists begin on page ii.

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Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
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stantive rulings necessary to promote a uniform application
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modify, or amend any of those previously published in the
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wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
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duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
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Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
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against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
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published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
March 29, 2021 Bulletin No. 2021–13

Part IV
U.S.-Japan Competent
Authority Arrangement
Regarding Treaty
Arbitration Clause
Announcement 2021-5
The following is a copy of the Com-
petent Authority Arrangement entered
into by the competent authorities of the
United States of America and Japan, with
respect to the implementation of the arbi-
tration process provided for in paragraphs
5, 6, and 7 of Article 25 of the Conven-
tion between the Government of Japan
and the Government of the United States
of America for the Avoidance of Double
Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income
signed at Washington on November 6,
2003, as amended by the Protocol signed
at Washington on January 24, 2013 (the
“Convention”) and paragraph 14 of the
Protocol signed at Washington on Novem-
ber 6, 2003, as amended by the Protocol
signed at Washington on January 24, 2013
(the “Protocol of 2003”).
The text of the Competent Authority
Arrangement is as follows:
Implementing Arrangement regarding
Paragraphs 5, 6 and 7 of Article
25 of the Convention between the
Government of Japan and the
Government of the United States of
America for the Avoidance of Double
Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on
Income
The competent authorities of Japan
and the United States of America have
established this arrangement (hereinafter
referred to as the “Arrangement”) to im-
plement the arbitration process provided
for in paragraphs 5, 6 and 7 of Article
25 of the Convention between the Gov-
ernment of Japan and the Government
of the United States of America for the
Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect
to Taxes on Income signed at Washington
on 6 November 2003 as amended by the
Protocol signed at Washington on 24 Jan-
uary 2013 (hereinafter referred to as “the
Convention”) and paragraph 14 of the
Protocol signed at Washington on 6 No-
vember 2003 as amended by the Protocol
signed at Washington on 24 January 2013
(hereinafter referred to as “the Protocol of
2003”).
Subject to certain exceptions described
in paragraph III, this arbitration process
applies to cases that the competent author-
ities of Japan and the United States have
determined are suitable for assistance un-
der the mutual agreement procedure of
paragraphs 1, 2, 3 and 4 of Article 25 of
the Convention in accordance with pub-
lished guidance, in the case of Japan, the
Commissioner’s Directive on the Mutual
Agreement Procedure issued on 25 June
2001 or any amendment or successor
provisions thereof, and in the case of the
United States, Revenue Procedure 2015-
40 or any amendment or successor provi-
sions thereof.
This Arrangement is adopted in accor-
dance with subparagraph (i) of paragraph
7 of Article 25 of the Convention.
Both competent authorities will fol-
low the procedures in this Arrangement in
good faith, and will ensure that the pre-
senter of the case and the arbitrators will
follow the procedures in this Arrangement
in good faith.
I. Definitions and General Matters
A. “MAP” is the abbreviation for the
Mutual Agreement Procedure, which are
proceedings of the competent authorities
under Article 25 of the Convention.
B. The term “Concerned Person”
means the presenter of a case to a com-
petent authority for consideration under
Article 25 of the Convention and all other
persons, if any, whose tax liability to ei-
ther Contracting State may be directly af-
fected by a mutual agreement arising from
that consideration.
C. The “Commencement Date” for a
case is the earliest date on which the infor-
mation necessary to undertake substantive
consideration for a mutual agreement has
been received by both competent authori-
ties. The Commencement Date will be de-
termined in accordance with paragraph IV.
D. Each competent authority will iden-
tify an individual or individuals within
the competent authority’s office to carry
on administrative coordination of arbi-
tration matters. Actions identified in this
Arrangement which are to be taken by a
competent authority may be accomplished
by these individuals on behalf of the com-
petent authority.
E. If a competent authority does not ac-
cept a MAP request for assistance from a
taxpayer, or ceases providing MAP assis-
tance, the competent authority will notify,
and consult, with the other competent au-
thority whether the case is not suitable for
assistance.
II. Cases Eligible for Arbitration
A. According to paragraphs 5, 6, and 7
of Article 25 of the Convention, arbitra-
tion will be available where:
1. the case was presented to the compe-
tent authority of the Contracting State of
which the presenter is a resident or, if his
case comes under paragraph 1 of Article
24 of the Convention, to that of the Con-
tracting State of which he is a national, on
the basis that the actions of one or both
of the Contracting States have resulted
for him in taxation not in accordance with
the provisions of the Convention, and the
competent authorities are unable to reach
an agreement to resolve the case; and
2. a request for arbitration was present-
ed in accordance with subparagraphs B
and C of paragraph V.
B. In determining whether arbitration is
available for a case, it is understood that:
1. taxation will be considered to have
resulted for the purpose of paragraph 5
of Article 25 of the Convention from the
actions of one or both of the Contract-
ing States as soon as tax has been paid,
assessed or otherwise determined (for
example, a notification of correction, de-
termination or deficiency of a tax liabili-
ty has been issued), or in cases where the
taxpayer is officially notified by the tax
authorities that they intend to tax him on
a certain element of income (for example,
Bulletin No. 2021–13 965 March 29, 2021

a notice of proposed adjustment has been
issued).
2. the fact that tax collection proce-
dures may have been suspended will not
affect a determination that taxation has
resulted from the actions of one or both
Contracting States.
C. An unresolved case that is the sub-
ject of a request for an advance pricing
arrangement (hereinafter referred to as
“APA”) will be subject to arbitration pro-
cedures in accordance with paragraph
XVII.
III. Cases Not Eligible for Arbitration
Notwithstanding paragraph II, as pro-
vided in paragraphs 5, 6 and 7 of Article
25 of the Convention, arbitration will not
be available, for example:
1. for non-taxpayer-specific cases;
2. for a case if a decision with respect
to such case has already been rendered by
a court or administrative tribunal of either
Contracting State;
3. for a case for which both competent
authorities have decided that the case is
not suitable for resolution through ar-
bitration and have notified the present-
er of the case of such decision no later
than two years after the Commencement
Date; or
4. for a case that is the subject only of
the provisions set forth in the final sen-
tence of paragraph 3 of Article 25 of the
Convention (i.e., for the elimination of
double taxation in cases not provided for
in the Convention).
IV. Commencement Date
A. The term “information necessary to
undertake substantive consideration for a
mutual agreement” in subparagraph (b) of
paragraph 7 of Article 25 of the Conven-
tion, except as described in subparagraph
C of paragraph XVII with respect to a case
that is the subject of request for an APA,
means:
1. the full name and address of the
presenter of the case for consideration by
both competent authorities;
2. the full name and address of any oth-
er Concerned Person than the presenter of
the case;
3. the taxable years of the Concerned
Person which are the subject of the case;
4. the nature and date of the actions giv-
ing rise to the case, including any amounts
of income, expense or tax in dispute in the
currencies of both Contracting States;
5. an explanation of the reason for the
MAP request, and the nature of the relief
sought or the action requested in the Con-
tracting States with respect to the issues
raised in the case;
6. the relationship, situation or struc-
ture of the transactions and related parties
involved in the case;
7. a statement indicating whether a
Concerned Person has filed a notice of
objection, notice of appeal, or comparable
documentation with respect to the case in
either of the Contracting States;
8. a copy of any documents issued by
the tax authority of either or both Con-
tracting States with regard to the actions
giving rise to the case; and
9. any specific additional information
necessary for initial consideration of the
case and requested by the competent au-
thority within 45 days after the receipt
(from either a Concerned Person or the
other competent authority) of the MAP re-
quest. This period may be extended up to
90 days with the concurrence of the other
competent authority. Where the MAP re-
quest is provided to only one competent
authority by the Concerned Person(s),
that competent authority will inform the
Concerned Person of the date on which
it transmits the MAP request to the other
competent authority.
B. Both competent authorities will
confirm to each other the date on which
all the information described in subpara-
graph A was received by both competent
authorities, i.e., the Commencement Date
of a case.
C. Once the Commencement Date of
a case has been confirmed by both com-
petent authorities under subparagraph B,
the competent authority to whom that case
has been presented under paragraph 1 of
Article 25 of the Convention will notify
the presenter of the case of that date.
V. Request for Submission of Case to
Arbitration
A. An arbitration proceeding with re-
spect to a case will begin on a date (here-
inafter referred to as the “Date Arbitration
Proceedings Begin”) as identified accord-
ing to subparagraph (c) or (d) of paragraph
7 of Article 25 of the Convention. Except
as otherwise described in paragraph XVII
with respect to a case that is the subject
of a request for an APA, according to sub-
paragraph (c) of paragraph 7 of Article 25
of the Convention, the Date Arbitration
Proceedings Begin with respect to a case
is the later of:
1. two years after the Commencement
Date of that case, unless both competent
authorities have decided on a different
date and notified the presenter of the case
of such agreement (as provided in sub-
paragraphs E and F); and
2. where there is at least one Con-
cerned Person involved in the case in
each Contracting State, the earliest date
on which both competent authorities have
received, and where there is only one
Concerned Person involved in the case,
the date on which the competent author-
ity has received, a request for arbitration
as described in subparagraph B accom-
panied with all necessary attachments as
described in subparagraph C regarding a
case eligible for arbitration.
B. A request for arbitration will be
made in writing, and sent to the compe-
tent authority of which the presenter of
the case is a resident or, if his or her case
comes under paragraph 1 of Article 24 of
the Convention, to that of the Contract-
ing State of which he or she is a national
through:
(in Japan): Office of Mutual Agreement
Procedures, National Tax Agency; and
(in the United States): the United States
Competent Authority, according to section
10 (Arbitration) of Revenue Procedure
2015-40 (or any applicable subsequent
guidance).
C. A request for arbitration will be ac-
companied with:
1. sufficient information to identify the
case;
2. a written statement that no decision
with respect to such case has already been
rendered by a court or administrative tri-
bunal of either Contracting State; and
3. a written statement regarding confi-
dentiality in subparagraph A of paragraph
VI from all the Concerned Persons and
their authorized representatives or agents
according to formats specified by both
competent authorities.
March 29, 2021 966 Bulletin No. 2021–13

Bulletin No. 2021–13 967 March 29, 2021
D. After the receipt of a request for ar-
bitration, the competent authority who re-
ceived it will immediately inform the oth-
er competent authority of the fact that the
request was submitted, and send a copy of
the request and the accompanying infor-
mation and statements within 10 days to
the other competent authority.
E. According to clause (i) of subpara-
graph (c) or clause (i) of subparagraph (d)
of paragraph 7 of Article 25 of the Conven-
tion, both competent authorities may de-
cide in appropriate situations that the Date
Arbitration Proceedings Begin with respect
to a MAP case will be later than what it
would have been without such decision.
Such appropriate situations could be, for
example, where the competent authorities
are close to reaching a mutual agreement
to resolve the case, where there has been a
delay by a Concerned Person in providing
information in the MAP case, where MAP
is suspended by a request from the present-
er of the case, or where a Concerned Person
has provided significant new information
after the Commencement Date of the case.
Unless otherwise agreed between the com-
petent authorities and the relevant Con-
cerned Person, the competent authorities
will make the decision by the later date of:
1. two years after the Commencement
Date of the MAP case; or
2. the date when the request for arbitra-
tion is submitted.
F. If both competent authorities decide
the Date Arbitration Proceedings Begin
with respect to a case under subparagraph
E, then the competent authority to whom
that case has been presented will immedi-
ately notify the presenter of the case of the
date so decided.
G. If both competent authorities de-
termine that the case is not suitable for
resolution through arbitration, the compe-
tent authority to whom that case has been
presented will immediately notify the pre-
senter of the case of that determination.
VI. Confidentiality
According to subparagraph (b) of para-
graph 5 and subparagraphs (f), (g) and (h)
of paragraph 7 of Article 25 of the Con-
vention, the confidentiality of a case will
be maintained in the following manner:
A. All Concerned Persons and their
authorized representatives or agents will
agree, when the request for arbitration is
submitted, not to disclose to any person
(except other Concerned Persons) any
information received during the course
of the arbitration proceeding from either
competent authority or the arbitration
panel, other than the determination of the
panel.
B. No information relating to an arbi-
tration proceeding (including the deter-
mination of the arbitration panel) will be
disclosed by the competent authorities,
except as permitted by the Convention
and the laws of the Contracting States.
In addition, all material prepared in the
course of, or relating to, an arbitration
proceeding will be considered to be infor-
mation exchanged between the competent
authorities pursuant to Article 26 of the
Convention.
C. For the purposes of an arbitration
proceeding under paragraphs 5 and 7 of
Article 25 of the Convention, the mem-
bers of the arbitration panel (hereinafter
referred to as “arbitrators”) and their staff
will be considered to be “persons or au-
thorities” to whom information may be
disclosed under Article 26 of the Conven-
tion.
D. Both competent authorities will en-
sure that all arbitrators (and any of their
staff which will assist them in carrying on
the arbitration), prior to their acting in an
arbitration proceeding, agree in the forms
specified by both competent authorities not
to disclose any information relating to an
arbitration proceeding (including the deter-
mination of the arbitration panel), and to
abide by and be subject to the confidential-
ity and nondisclosure provisions of Article
26 of the Convention and similar provisions
of relevant laws of the Contracting States.
However, the arbitrators or their staff will
disclose the determination of the arbitration
panel to the competent authorities.
VII. Eligibility of Arbitrators
A. According to subparagraph (b) of
paragraph 14 of the Protocol of 2003, in
order for an individual to be eligible as an
arbitrator:
1. the individual is not an employee nor
has been an employee within the twelve-
month period prior to the Date Arbitration
Proceedings Begin of the tax administra-
tion, the Treasury Department, or the Min-
istry of Finance of the Contracting State
which identifies him or her;
2. the individual does not have any pri-
or involvement with the specific matters
at issue in the arbitration proceeding for
which he or she is being considered as an
arbitrator; and
3. in addition, the individual who will
serve as the chair of the arbitration panel
(hereinafter referred to as “the Chair”) is
not a national or lawful permanent resi-
dent of either Contracting State.
B. Both competent authorities will each
prepare and exchange a list of individuals
who may be eligible and are willing to
serve as the Chair. The competent authori-
ties will prepare and exchange such list ev-
ery two years, or more often as necessary.
C. Both competent authorities will en-
sure that the staff of an arbitrator will meet
the same requirements described in sub-
paragraph A.
VIII. Appointment of Arbitrators
A. According to subparagraph (b) of
paragraph 14 of the Protocol of 2003, the
arbitration panel will consist of three indi-
vidual members.
B. Each competent authority will select
one arbitrator to the arbitration panel by
sending a copy of the forms identified in
subparagraph D of paragraph VI, signed
by the arbitrator, to the other competent
authority within 60 days after the Date Ar-
bitration Proceedings Begin.
C. In the event that the competent au-
thority fails to make such selection in the
manner and within the time period in sub-
paragraph B, the other competent authori-
ty will select a second arbitrator within 90
days after the Date Arbitration Proceed-
ings Begin.
D. The procedure in subparagraph C
will not apply, where the failure of such
selection within the time period in subpara-
graph B is due to the fact that an individual
who had agreed to serve as an arbitrator be-
comes unable to serve because of circum-
stances outside of his or her control (for
example, death, serious illness or natural
disaster). Both competent authorities will
determine the appropriate time period for
the selection of an arbitrator in such a case.
E. Within 60 days after the latter selec-
tion of the two initial arbitrators who were
selected by the competent authorities un-

March 29, 2021 968 Bulletin No. 2021–13
der subparagraphs B, C and D (hereinafter
referred to as “ two initial arbitrators”),
the two initial arbitrators so selected will
select a third arbitrator, who will serve as
the Chair. The third arbitrator so selected
will inform both competent authorities of
his or her appointment as soon as possi-
ble. In order to help the two initial arbi-
trators make that selection, the competent
authorities will provide the two initial
arbitrators with a consensus list of indi-
viduals derived from the list described in
subparagraph B of paragraph VII (that is,
candidates to be the Chair) who appear to
be best qualified to decide the case under
consideration.
F. If the two initial arbitrators fail to se-
lect the third arbitrator in the manner and
within the time period in subparagraph
E, the two initial arbitrators will be dis-
missed, and each competent authority will
select a new arbitrator of the arbitration
panel.
G. The procedure in subparagraph F
will not apply, where the failure of such
selection within the time period in sub-
paragraph E is due to the fact that the
individual selected to serve as the Chair
becomes unable to serve because of cir-
cumstances outside of his or her control
(for example, death, serious illness or nat-
ural disaster). In such a case, unless other-
wise decided, both competent authorities
will provide the two initial arbitrators with
a revised consensus list of candidates to be
the Chair within 20 days after the end of
the period in subparagraph E. The two ini-
tial arbitrators will select a third arbitrator
from among the candidates so proposed
within 10 days after the receipt of the list
of candidates.
H. The arbitrators will be selected from
individuals who:
1. satisfy the eligibility requirements
identified in subparagraph A of paragraph
VII at the time of accepting an appoint-
ment to serve, and are reasonably expect-
ed to remain so during the entire Arbitra-
tion Proceeding and for a reasonable time
thereafter; and
2. have significant experience in in-
ternational tax matters (he or she need
not, however, have experience as either a
judge or arbitrator).
I. An arbitrator will be deemed select-
ed on the date on which he or she signs
the agreements (Statement, Declaration)
required by subparagraph D of paragraph
VI.
J. Where one of the two initial arbi-
trators becomes ineligible for service as
an arbitrator or for any other reasons it
is necessary to replace an arbitrator after
the arbitrator was selected, the competent
authority who had selected that individual
will select a replacement as soon as pos-
sible and no later than 60 days after the
position becomes vacant.
K. Where the Chair becomes ineligible
for service as an arbitrator or for any other
reasons it is necessary to replace the Chair
after the arbitrator was selected, the two
initial arbitrators will select a replacement
as soon as possible and no later than 30
days after the position becomes vacant.
L. If any arbitrator is unable to fulfill
his or her duties, the competent authori-
ties will consult with the remaining panel
members to determine a new timetable, if
necessary.
M. The arbitrators will undertake to
promptly disclose to both competent au-
thorities, in writing, any new facts or cir-
cumstances that arise during or following
the arbitration proceedings that might give
rise to doubts with respect to their impar-
tiality or independence.
IX. Procedures and Terms of Reference
A. As soon as possible after the Date
Arbitration Proceedings Begin, both com-
petent authorities will develop a brief
Statement of Information which will iden-
tify the Concerned Persons and contain a
general description of the proposed ad-
justments or similar issues to be resolved
in a case. The competent authority, or an
arbitrator selected by the competent au-
thority, may disclose the Statement of In-
formation, if the confidentiality of the in-
formation is ensured and such disclosure
is permitted by the law of the Contracting
State, to a candidate to be an arbitrator of
the case to check whether that candidate
satisfies the eligibility requirements iden
-
tified in subparagraph A of paragraph VII.
B. Both competent authorities under-
take to develop, within 30 days after the
Date Arbitration Proceedings Begin, an
agreed “Terms of Reference” for a case to
include:
1. a description of the relevant business
activities of the Concerned Persons;
2. a description of the adjustments or
similar issues in dispute in the case;
3. a description of the matters to be
considered for the resolution of the case;
including identification of all matters in
the case previously agreed between the
competent authorities; and
4. a description of the final position tak-
en by each competent authority in the ne-
gotiation of the unresolved matters which
prevent the mutual agreement between the
competent authorities.
The competent authorities may also
provide logistical or procedural informa-
tion in the Terms of Reference.
C. The Terms of Reference will be
communicated to the Chair on the date of
his or her appointment, or as soon thereaf-
ter as possible.
D. If the Terms of Reference has not
been completed by the date for submis-
sion of the proposed resolutions and po-
sition papers, both competent authorities
will send to each other and to the Chair
their most recent written proposals for
the Terms of Reference along with their
proposed resolutions and position papers.
All the matters identified as unresolved in
these draft Terms of References are treat-
ed as unresolved for the purpose of the
subsequent proceedings.
E. According to subparagraph (d) of
paragraph 14 of the Protocol of 2003,
each of the competent authorities will be
permitted to submit a proposed resolu-
tion, not to exceed five pages, addressing
each adjustment or similar issue raised in
a case. Such proposed resolution will be a
resolution of the entire case, and will re-
flect, without modification, all matters in
the case previously agreed between both
competent authorities. Such proposed
resolution will be limited to a disposition
of specific monetary amounts (for exam-
ple, of income, profit, gain or expense)
or, where specified, the maximum rate of
tax charged pursuant to the Convention,
for each adjustment or similar issue in
the case, based on the application of the
Convention to the case. Each of the com-
petent authorities will also be permitted to
submit a supporting position paper, not to
exceed 30 pages plus annexes, for consid-
eration by the arbitration panel.
F. The submission of a proposed res-
olution and supporting position paper by
the competent authority will be made by

Bulletin No. 2021–13 969 March 29, 2021
posting it (or similarly sending it via ex-
press delivery service) to the Chair within
60 days after the appointment of the Chair.
Unless alternative arrangements are made,
the Chair will in turn send a copy of each
competent authority’s proposed resolution
and supporting position paper to the other
panel members and the other competent
authority within 5 days after the receipt of
the later submission.
G. In the event that only one of the
competent authorities submits a proposed
resolution within the allotted time, then
that proposed resolution will be deemed
to be the determination of the arbitration
panel in that case.
H. According to subparagraph (g) of
paragraph 14 of the Protocol of 2003, each
of the competent authorities will be per-
mitted to submit a reply submission, not to
exceed 10 pages excluding annexes, to the
arbitration panel in order to address any
points raised by the proposed resolution
or supporting position paper submitted
by the other competent authority. In this
reply submission, the competent author-
ity may also comment upon any papers
setting forth its analysis and views of the
case (hereinafter referred to as a “Present-
er Position Paper”) submitted under the
provisions of paragraph X. If the compe-
tent authority exercises its option to also
comment upon a Presenter Position Paper,
its reply submission will not exceed 20
pages excluding annexes. The submission
of a reply submission by the competent
authority will be made by posting it (or
similarly sending it via express delivery
service) to the Chair within 120 days af-
ter the appointment of the Chair. Unless
alternative arrangements are made, the
Chair will send a copy of each competent
authority’s reply submission to the other
panel members and the other competent
authority within 5 days after the receipt of
the reply submission.
I. In a particular case, both competent
authorities may decide to use a different
presentation or page limitation for the
proposed resolutions, supporting position
papers or reply submissions, such as is
provided in paragraphs XV and XVI.
J. Any annex to a supporting posi-
tion paper or reply submission will be a
document previously made available for
both competent authorities to use in ne-
gotiation. Any factual information used
in a supporting position paper or reply
submission will be what was contained
in a document previously made available
for both competent authorities to use in
negotiation, or otherwise reflect infor-
mation widely available to the general
public.
K. Except with respect to the final po-
sition taken by the other competent au-
thority as described above in clause 4 of
subparagraph B of paragraph IX, the com-
petent authority will only be permitted to
refer to a proposal for resolution made by
either competent authority during negoti-
ations if that proposal is submitted to the
arbitration panel for consideration as a
proposed resolution.
L. Within 120 days after the receipt of
the proposed resolutions from both com-
petent authorities, the arbitration panel
may ask both competent authorities in
writing for additional information. Such
additional information may be submitted
to the arbitration panel only at its request,
and will be provided within 30 days af-
ter the request. Copies of the arbitration
panel’s request and the competent au-
thority’s response will be provided to the
other competent authority on the date on
which the request or the response is sub-
mitted. If the panel requests information
or analyses that have not previously been
available or considered for purposes of the
negotiation, the competent authorities will
consult to determine how to respond to the
panel’s request. The panel will not request
additional information from the presenter
of the case.
M. Unless otherwise decided between
both competent authorities and the Chair,
the competent authorities will send to the
Chair four copies of each document sub-
mitted to the arbitration panel, for distri-
bution to the other arbitrators and the oth-
er competent authority.
N. Unless otherwise decided between
both competent authorities, any informa-
tion (including any information provided
by the presenter of the case or his or her
authorized representatives or agents in
writing or orally) that was not available
to both competent authorities before the
Date Arbitration Proceedings Begin will
not be taken into account for purposes of
the arbitration decision. Furthermore, any
reply submission or any additional infor
-
mation that was provided to the panel after
the deadlines specified in subparagraphs
H and L respectively will not be taken into
account for purposes of the arbitration de-
cision.
O. To the extent needed, the arbitra-
tion panel may adopt any additional pro-
cedures necessary for the conduct of its
business, provided that the procedures are
not inconsistent with any provision of Ar-
ticle 25 of the Convention, paragraph 14
of the Protocol of 2003, or this Arrange-
ment or any other procedural rules decid-
ed between both competent authorities. If
the arbitration panel adopts any additional
procedures, the Chair will provide a writ-
ten copy of them to the competent author-
ities.
X. Participation of the Person Who
Requested the Arbitration
A. According to subparagraph (h) of
paragraph 14 of the Protocol of 2003, the
presenter of the case is permitted to submit
for consideration by the arbitration panel
Presenter Position Paper by transmitting
it to the competent authority of which the
presenter is resident or, if his or her case
comes under paragraph 1 of Article 24 of
the Convention, to that of the Contracting
State of which he or she is a national with-
in 30 days after a request for arbitration
made in conformance with the provisions
of paragraph V.
B. Both competent authorities will
advise the presenter of the case that the
Presenter Position Paper does not exceed
30 pages excluding annexes, and the Pre-
senter Position Paper and annexes do not
include any information (including posi-
tions, arguments, analyses and documents)
not previously provided to the competent
authorities during their negotiation. The
competent authorities may decide a spe-
cific format, on a case by case basis, for
the Presenter Position Paper.
C. The competent authority which re-
ceives the Presenter Position Paper will
send a copy of the Presenter Position
Paper to the Chair (if the Chair has not
been appointed on the date on which the
receipt of the Presenter Position Paper,
immediately after the appointment of the
Chair) and the other competent authority
immediately (no later than 5 days after the
receipt of the original Presenter Position
Paper). That competent authority may ask

March 29, 2021 970 Bulletin No. 2021–13
the presenter of the case to submit addi-
tional copies as necessary.
XI. Communication
A. Before the Chair is selected, both
competent authorities will send any cor-
respondence concurrently to both arbi-
trators. After the Chair is selected, unless
otherwise decided between the Chair and
the competent authorities, the competent
authorities will send any correspondence
to the Chair. Similarly, the Chair will send
any correspondence concurrently to the
competent authorities.
B. Except for administrative or logis-
tical matters, no competent authority will
have any ex parte communications with
an arbitrator.
C. All communication, except for lo-
gistical matters, between both competent
authorities and the arbitration panel will
be in writing. Written communication by
facsimile or email is allowed, however,
no information that may identify the tax-
payer(s) may be included in an email un-
less other security precautions to protect
taxpayer information are agreed upon by
both competent authorities. Express mail
or air mail will be used for all correspon-
dence other than that sent via facsimile or
email.
D. The arbitrators will communicate by
telephone, facsimile or face-to-face meet-
ings. Arbitrators will communicate by
email; however they will not include any
taxpayer information in the email.
E. No substantive discussion will be
done, unless all arbitrators are present
(physically or remotely).
F. No arbitrator will have communica-
tions regarding the issues or matters be-
fore the arbitration panel with the present-
er of the case, the taxpayers involved in
the case, or their representatives during or
subsequent to the arbitration process.
XII. Costs and Logistical
Arrangements
A. According to subparagraph (k) of
paragraph 14 of the Protocol of 2003, the
fees and expenses of the arbitrators, as
well as any costs incurred in connection
with the proceeding by the Contracting
States, will be borne equitably by the Con-
tracting States in the following manner:
1. each competent authority will bear
the cost of its selected arbitrator and its
own expenses; and
2. the cost of the Chair and other ex-
penses associated with the conduct of the
proceedings will be borne by the compe-
tent authorities in equal shares. The term
“other expenses associated with the con-
duct of the proceedings” does not include
indirect costs incurred for the logistical ar-
rangements described in subparagraph D.
B. The compensation of the arbitrators
will be set as follows:
1. The fees and expenses of an arbitra-
tor selected by the competent authority in
accordance with paragraph VIII will be
set at the amounts generally payable in the
Contracting State on the Date Arbitration
Proceedings Begin, provided that they do
not exceed the amounts set by the Interna-
tional Centre for Settlement of Investment
Disputes Schedule of Fees for arbitrators
in effect on the same date. The competent
authority may use this Schedule of Fees
(subject to any necessary modifications
as may relate to the maximum amount to
be paid, payment methods or currency ex-
change) to determine the fees and expens-
es of its selected arbitrator. This applies in
particular for hotel, meals, travel expens-
es, and incidental costs.
2. The fees and expenses of the Chair
will be the amounts set by the Interna-
tional Centre for Settlement of Investment
Disputes Schedule of Fees for arbitrators
in effect on the Date Arbitration Proceed-
ings Begin (subject to any necessary mod-
ifications as may relate to the maximum
amount to be paid, payment methods or
currency exchange).
C. Neither competent authority will
charge any Concerned Person for costs as-
sociated with arbitration.
D. Unless otherwise decided by both
competent authorities, the competent au-
thority to which a case giving rise to the
arbitration was initially presented will
be responsible for the logistical arrange-
ments for any face-to-face meetings of
the arbitration panel and will provide the
administrative personnel necessary for the
support of such meetings. The administra-
tive personnel so provided will report only
to the Chair concerning any matter relat-
ed to that process. In the event that both
competent authorities have received a
MAP request, the competent authority the
actions of which resulted in taxation not
in accordance with the provisions of the
Convention will carry out the logistical
arrangements described in this subpara-
graph. The competent authority respon-
sible for the logistical arrangements may
arrange meeting facilities in a location
that minimizes the panel’s travel time and
expenses. The competent authority may
arrange a meeting in the other’s meeting
facilities, as needed.
E. In general, each arbitrator will be
compensated for no more than seven days
of work on the arbitration (e.g., five days
of preparation and for two meeting days).
If the arbitrators feel they require addi-
tional time to properly consider the case,
the Chair will contact both competent au-
thorities to request additional time. Both
competent authorities anticipate that pan-
el members will be able to perform their
duties without the use of their staff. Both
competent authorities will not compensate
a staff member of an arbitrator.
F. As a general rule, both competent
authorities will encourage the arbitration
panel to complete their joint consideration
of the case through telecommunications.
The Chair will obtain approval from both
competent authorities prior to incurring
any expenses relating to a face-to-face
meeting.
XIII. Arbitration Panel Determination
A. Within 180 days after the appoint-
ment of the Chair (or, where subparagraph
J or K of paragraph VIII applies, unless
otherwise decided by both competent au-
thorities, within 180 days after the selec-
tion of the new arbitrator), the Chair will
transmit the written determination of the
arbitration panel, concurrently to each
competent authority. This period may be
extended up to 270 days where subpara-
graph L of paragraph IX applies. Within
10 days after the receipt of the determi-
nation, the competent authority to which
the request for arbitration was submitted
will write to the presenter of the case to
request whether that person accepts the
determination.
B. In the event that the determination
has not been communicated to both com-
petent authorities within the period pro-
vided for in subparagraph A, the compe-
tent authorities will consult to determine

Bulletin No. 2021–13 971 March 29, 2021
whether to extend the period for the arbi-
tration panel to transmit a determination,
or to dismiss the panel and select new
arbitrators in accordance with paragraph
VIII.
C. Issues will be decided by the arbi-
trators in accordance with the Convention
and applicable rules of international law.
D. According to subparagraph (e) of
paragraph 7 of Article 25 of the Conven-
tion, unless the presenter of the case does
not accept the determination of the arbi-
tration panel, such determination will con-
stitute a resolution by mutual agreement
of the entire case under Article 25 of the
Convention at the time it is timely accept-
ed by the presenter and be binding on both
Contracting States.
E. The resolution resulting from the
determination of the arbitration panel will
be implemented notwithstanding any time
limits or procedural limitations in the law
of the Contracting States, except such lim-
itations as apply for the purposes of giving
effect to such a resolution.
F. The determination of the arbitration
panel will be decided on the basis of a ma-
jority vote.
G. The arbitration panel will not deter-
mine the treatment of any associated inter-
est or penalties; rather that treatment will
be determined under the respective taxa-
tion laws of the Contracting States.
H. According to subparagraph (i) of
paragraph 14 of the Protocol of 2003:
1. The arbitration panel will deliver a
determination in writing to both compe-
tent authorities.
2. The determination of the arbitration
panel will be limited to one of the pro-
posed resolutions submitted by the com-
petent authorities for each adjustment or
similar issue and any threshold questions,
and will not include a rationale or any oth-
er explanation of the determination.
3. The determination of the arbitration
panel has no precedential value with re-
spect to the application of the Convention
in any other case.
I. According to subparagraph (j) of
paragraph 14 of the Protocol of 2003:
1. Unless both competent authorities
decide to provide a longer time period,
the presenter of the case will have 45 days
after receiving the determination of the
arbitration panel to notify, in writing, the
competent authority to whom the case was
presented, of his or her acceptance of the
determination.
2. If the presenter of the case fails to so
advise the relevant competent authority,
the determination will be considered not
to be accepted.
3. In the event the case is pending in
litigation or appeal, the determination of
the arbitration panel will be considered
not to be accepted by the presenter of the
case if any Concerned Person who is a
party to the litigation or appeal does not
advise, within the same time frame de-
scribed above in clause 1, the relevant
court or administrative tribunal of its in-
tention to withdraw from consideration
all issues resolved in the arbitration pro-
ceeding.
4. Where the determination of the arbi-
tration panel is not accepted, the case will
be closed and will not be eligible for any
further consideration by the competent au-
thorities.
XIV. Terminating Proceedings
A. According to subparagraph (c) of
paragraph 14 of the Protocol of 2003,
MAP, including the arbitration proceed-
ing, with respect to a case will terminate
if at any time before the arbitration panel
delivers a determination to the competent
authorities:
1. the competent authorities have
reached a mutual agreement to resolve the
case pursuant to paragraph 2 of Article 25
of the Convention;
2. the presenter of the case has with-
drawn its request for arbitration;
3. a decision concerning the case is ren-
dered by a court or administrative tribunal
of one of the Contracting States during the
arbitration proceeding; or
4. if any Concerned Person or their
authorized representatives or agents will-
fully violates the written nondisclosure
statement required by subparagraph (b)
of paragraph 5 of Article 25 of the Con-
vention, and both competent authorities
decide that such violation will result in the
termination of the arbitration proceeding.
B. If MAP, including the arbitration
proceeding, with respect to the case is
terminated under clause 2, 3 or 4 of sub-
paragraph A, both competent authorities
will exchange letters to close the case un-
agreed.
C. At the termination of any proceed-
ing each arbitrator will immediately de-
stroy all documents or other information
received from either competent author-
ity, or that otherwise reflect the consid-
erations or discussions of the arbitration
panel, and delete all information that may
be stored on any computer, personal data
assistant or other electronic device or
media.
XV. Multiple Adjustments
A. According to subparagraph (f) of
paragraph 14 of the Protocol of 2003,
where an arbitration proceeding concerns
a case comprising multiple adjustments or
similar issues each requiring a disposition
of specific monetary amounts (for exam-
ple, of income, profit, gains or expense)
or where specified, the maximum rate of
tax charged pursuant to the Convention,
the proposed resolution may propose a
separate disposition for each adjustment
or similar issue.
B. Unless both competent authorities
decide upon a different presentation to the
arbitration panel, the proposed resolution
and supporting position paper in such a
case will address each adjustment sepa-
rately, within the overall page limitation.
C. The arbitration panel will make a
determination on each adjustment or sim-
ilar issue separately. Thus, the final deter-
mination of the arbitration panel may be
comprised of a proposed resolution from
the competent authority on one adjust-
ment and a proposed resolution from the
other competent authority on another ad-
justment.
XVI. Permanent Establishment,
Residency, and Other Threshold
Questions
A. According to subparagraph (e) of
paragraph 14 of the Protocol of 2003, in
the case of an arbitration proceeding con-
cerning:
1. the taxation of an individual with re-
spect to whom the competent authorities
have been unable to reach an agreement
regarding the Contracting State of which
the individual is a resident;
2. the taxation of the business profits
of an enterprise with respect to which the
competent authorities have been unable to

March 29, 2021 972 Bulletin No. 2021–13
reach an agreement on whether a perma-
nent establishment exists; or
3. such other issues the determination
of which are contingent on resolution of
similar threshold questions;
then the competent authorities may
submit proposed resolutions separately ad-
dressing the relevant threshold questions as
described in clause 1, 2 or 3 above (for ex-
ample, the question of whether a permanent
establishment exists), and the contingent
determinations (for example, the determi-
nation of the amount of profit attributable
to such permanent establishment).
B. In such a case, the competent author-
ity is allowed to submit a proposed reso-
lution and supporting position paper which
will address each issue separately, taking
alternative positions as appropriate. For ex-
ample, the competent authority is allowed
to take a position that no permanent estab-
lishment exists in one proposed resolution,
and to propose an amount of business profit
to be attributable to a permanent establish-
ment in another proposed resolution in case
the arbitration panel determines that a per-
manent establishment exists.
C. The arbitration panel will make a de-
termination on the threshold question and
the contingent determination separately.
XVII. Date Arbitration Proceedings
Begin for Advance Pricing
Arrangement (“APA”) Case
A. According to subparagraph (d) of
paragraph 7 of Article 25 of the Conven-
tion, the Date Arbitration Proceedings
Begin with respect to a case that is the
subject of a request for an APA is the lat-
er of:
1. six months after an official notifica-
tion has been issued by the tax authority
of either Contracting State of a correction
of, or an intent to adjust, the pricing of a
transaction or transfer covered by a re-
quest for an APA regarding a Concerned
Person, unless both competent authori-
ties have decided on a different date and
notified the presenter of the case of such
decision; and
2. the earliest date on which both com-
petent authorities have received a request
for arbitration in subparagraph B of para-
graph V accompanied with all necessary
attachments as described in subparagraph
C of that paragraph.
B. However, the arbitration proceeding
will not begin any earlier than two years
after the date on which the information
necessary to undertake substantive con-
sideration for a mutual agreement on the
APA has been received by both competent
authorities.
C. The “date on which the informa-
tion necessary to undertake substantive
consideration for a mutual agreement on
the APA has been received by both com-
petent authorities” in subparagraph B
means the date on which the first position
papers regarding the APA case have been
exchanged between the competent author-
ities.
XVIII. Timeframes
A. Notwithstanding the above para-
graphs, in an exceptional case both com-
petent authorities may decide to utilize
different procedural periods.
B. Both competent authorities will
confirm the period so extended and notify
the Concerned Person in each Contracting
States of that extended period in writing.
XIX. Miscellaneous
In computing the days necessary for an
action in this Arrangement, the day when
the event beginning this computation oc-
curred will not be counted.
XX. Coordination with Protocol Entry
into Force
A. This Arrangement applies to any
request for arbitration made pursuant to
paragraph 5 of Article 25 of the Conven-
tion on or after August 30, 2019.
B. Notwithstanding subparagraphs A
and B of paragraph IV, the Commence-
ment Date for a MAP case that was al-
ready under consideration by the compe-
tent authorities as of August 30, 2019 will
be August 30, 2019 (See paragraph 3 of
Article XV of the Protocol amending the
Convention signed at Washington on 24
January 2013).
C. Both competent authorities may
modify or supplement this Arrangement
by an exchange of letters between them.
For the Competent Authority of JapanFor the Competent Authority of the United States of America
KOMIYA Atsushi
Deputy Commissioner
International Affairs
National Tax Agency
Date:
Douglas W. O’Donnell
Commissioner,
Large Business and International Division
Internal Revenue Service
Date:

Bulletin No. 2021–13 973 March 29, 2021
Attachment 1 - Formats in the United States
1-1: Taxpayer Request for MAP Arbitration and Nondisclosure Statement
1-2: Nondisclosure Statement of Taxpayer’s Authorized Representative
1-3: Taxpayer Authorization to Disclose Tax Information for Purposes of Treaty MAP Arbitration Proceedings
1-4: Declaration of Arbitrator
Attachment 2 - Formats in Japan
2-1: Nondisclosure Statement of Taxpayer and Taxpayer’s Authorized Representative (English translation – Japanese
text can be found at https://www.irs.gov/pub/irs-utl/US-Japan%20Arbitration%20Implementation%20Arrangement%201.pdf)
2-2: Sample Contract between the National Tax Agency and Arbitrator (Clauses Regarding Confidentiality) (Japanese
text omitted and can be found at https://www.irs.gov/pub/irs-utl/US-Japan%20Arbitration%20Implementation%20Arrange-
ment%201.pdf)

March 29, 2021 974 Bulletin No. 2021–13
Attachment 1-1
TAXPAYER 【[】REQUEST FOR MAP ARBITRATION AND【]
1
】 NONDISCLOSURE STATEMENT
__________________________________________________________________________________________________________
NAME OF TAXPAYER
__________________________________________________________________________________________________________
ADDRESS
__________________________________________________________________________________________________________
CITY STATE COUNTRY POSTAL CODE (ZIP CODE)
The above-named taxpayer hereby [requests and] consents to the competent authorities of the United States and Japan undertaking an
arbitration proceeding described in paragraphs 5, 6 and 7 of Article 25 (Mutual Agreement Procedure) of the Convention between the
Government of Japan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with respect to Taxes on Income signed at Washington on 6 November 2003 as amended by the Protocol signed
at Washington on 24 January 2013 and paragraph 14 of the Protocol signed at Washington on 6 November 2003 as amended by the
Protocol signed at Washington on 24 January 2013, as necessary in order to reach a mutual agreement under Article 25 regarding the
request filed with the [United States/Japanese] Competent Authority on [date] .
This consent and nondisclosure statement also covers the following concerned persons
2
that the taxpayer has the legal authority to
bind:
[Enter name and address of each such concerned person. If none, enter “Not Applicable.”]
The following concerned persons, if any, are not covered by this consent and nondisclosure statement (and therefore must submit a
separate consent and nondisclosure statement on their own behalf):
[Enter name and address of each such concerned person. If none, enter “Not Applicable.”]
In making this consent, the taxpayer and, if applicable, each of the concerned persons covered by this consent and nondisclosure state-
ment, agrees not to disclose to any person (other than the taxpayer’s authorized representative or agent, another concerned person,
its authorized representative or agent, or one of the competent authorities or its authorized representative
3
) any information received
during the course of the arbitration proceeding from either Contracting State or the arbitration panel, other than the determination of
such panel.
The following persons are all of the representatives or agents of the taxpayer or, if applicable, the specified concerned person, who
have been authorized to assist the taxpayer or specified concerned person in the mutual agreement procedure to which this consent
and nondisclosure statement applies. Attached to this consent and nondisclosure statement are the nondisclosure statements of each
of these representatives and agents, as is required by paragraph 5 of Article 25 of the above-mentioned Convention.

[Enter name and address of each such representative or agent and the concerned person(s) for which each is acting. If none, enter
“Not Applicable.”]
The information, positions, arguments, or analyses contained in any position paper submitted for consideration of the arbitration
panel will be previously presented, and any annexes to such position paper will be documents previously made available, to both
competent authorities for their consideration during negotiations prior to the beginning of arbitration.
1
A taxpayer may make a request for MAP arbitration in a separate letter, but must make its nondisclosure statement in this form.
2
As defined in the relevant treaty provisions, the term "concerned person" means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 25
and any other person whose tax liability to either the United States or Japan may be directly affected by the mutual agreement arising from that request. A concerned person that has the legal
authority to bind any other concerned person(s) on this matter may do so in a comprehensive statement.
3
The U.S. Competent Authority has authorized the International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association, to act on its behalf with respect to
certain designated matters concerning the arbitration proceeding.

Bulletin No. 2021–13 975 March 29, 2021
[Under penalties of perjury]
4
, I declare that I have examined this consent and nondisclosure statement and any accompanying attach-
ments and to the best of my knowledge and belief, they are true, correct, and complete. Furthermore, I certify that I have the legal
authority to execute this consent and nondisclosure statement on behalf of each concerned person covered by it and to bind each
concerned person to its terms.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
__________________________________________
Position
4
Only in the US.

March 29, 2021 976 Bulletin No. 2021–13
Attachment 1-2
NONDISCLOSURE STATEMENT OF TAXPAYER’S AUTHORIZED REPRESENTATIVE
I hereby agree that neither I nor any member of my firm’s office staff nor any other person who may assist me or the firm in the
mutual agreement proceeding requested in the letter of [date] submitted by [name of taxpayer] to the competent authorities of the
United States and Japan will disclose to any person (other than the taxpayer, another concerned person,
5
its authorized representative
or agent, or one of the competent authorities or its authorized representative
6
) any information received during the course of the arbi-
tration proceeding from either Contracting State or the arbitration panel, other than the determination of such panel.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
__________________________________________
Position
5
As defined in the relevant treaty provisions, the term "concerned person" means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 25
of the Convention between the Government of Japan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
respect to Taxes on Income and any other person whose tax liability to either the United States or Japan may be directly affected by the mutual agreement arising from that request.
6
The U.S. Competent Authority has authorized the International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association to act on its behalf with respect to
certain designated matters concerning the arbitration proceeding.

Bulletin No. 2021–13 977 March 29, 2021
Attachment 1-3
TAXPAYER AUTHORIZATION TO DISCLOSE TAX INFORMATION FOR PURPOSES OF TREATY MAP
ARBITRATION PROCEEDINGS
__________________________________________________________________________________________________________
NAME OF TAXPAYER
__________________________________________________________________________________________________________
U.S. TAX IDENTIFICATION NUMBER (e.g., EIN)
__________________________________________________________________________________________________________
ADDRESS
__________________________________________________________________________________________________________
CITY STATE COUNTRY POSTAL CODE (ZIP CODE)
The above-named taxpayer, in accordance with its request of [date] that the competent authorities of the United States and Japan
undertake an arbitration proceeding described in paragraphs 5, 6 and 7 of Article 25 of the Convention between the Government of
Japan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Eva-
sion with respect to Taxes on Income signed at Washington on 6 November 2003 as amended by the Protocol signed at Washington
on 24 January 2013 and paragraph 14 of the Protocol signed at Washington on 6 November 2003 as amended by the Protocol signed
at Washington on 24 January 2013, consents to the disclosure by the competent authorities of Japan and the United States of any and
all returns and return information with respect to the taxpayer’s mutual agreement procedure (MAP) request submitted to the compe-
tent authorities on [date] , to the individuals appointed (or identified for potential appointment pending clearance) by the respective
competent authorities to arbitrate the MAP case, the individual appointed (or identified for potential appointment pending clearance)
as the Chair of the arbitration panel, and the following representatives, if any, of the respective competent authorities who are autho-
rized by the competent authority to act on its behalf with respect to certain designated matters concerning the arbitration proceeding:
In the case of the United States: International Centre for Dispute Resolution (ICDR), a division of the American Arbitration
Association
In the case of Japan: _____________________________________________________________________________________.
In the case of a consolidated group of U.S. corporations, this consent is made in regard to all such information concerning the follow-
ing members of the consolidated group, who are the subjects of the mutual agreement request:
[Enter name and address of each consolidated group member, if any, who is a concerned person.
7
If none, enter “Not Applica-
ble.”]
I certify that I have the legal authority to execute a request for or consent to disclose a return or return information to disclose infor-
mation to third parties (as described in Treas. Reg. §301.6103(c)-1(e)(4)) and I hereby make this consent on behalf of the taxpayer,
including each of the members of the consolidated group listed above.
8
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
__________________________________________
Position
7
As defined in the relevant treaty provisions, the term "concerned person" means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 25
and any other person whose tax liability to either the United States or Japan may be directly affected by the mutual agreement arising from that request.
8
Each taxpayer or concerned person (as defined in footnote 1) whose U.S. tax liability may be directly affected by the mutual agreement procedure request must sign a consent. In the case
of a consolidated group (as defined in Treas. Reg. 1.1502-1(h)), a person authorized by law to act for the common parent should execute the consent on behalf of the group. See Treas. Reg.
§1.1502-77(a).

March 29, 2021 978 Bulletin No. 2021–13
Attachment 1-4
Declaration of Arbitrator
In the matter of the Mutual Agreement Procedure case under Article 25 of the Convention between the Government of Japan and the
Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect
to Taxes on Income (“Convention”) involving the following Concerned Persons:
[Names and Addresses of taxpayers that will be directly affected by the decision]
Paragraphs 5, 6 and 7 of Article 25 (Mutual Agreement Procedure) of the Convention, paragraph 14 of the Protocol of 2003 to that
Convention, and the Implementing Arrangement between the Competent Authorities of Japan and The United States (Implementing
Arrangement), provide rules and procedures under which the Japan – U.S. arbitration process (the Proceeding) will operate.
I certify that I can serve impartially in this case, meet the conditions of paragraph VII.A of the Implementing Arrangement at this
time, and shall remain independent of the Contracting States and Concerned Persons during the entire arbitration proceeding and for
a reasonable period of time thereafter.
Past or existing facts or circumstances that might be likely to give rise to justifiable doubts as to my impartiality or independence, if
any, are identified in an Attachment to this Declaration.
Notwithstanding such relationships and interests, if any, I believe that I can be impartial and can exercise independent judgment in
making my decisions in the Proceeding and thus to the best of my knowledge and belief, there is no reason why I should not serve
as an Arbitrator with respect to the above-noted case. If, at any stage during the Proceeding, any new fact or circumstance arises that
might give rise to such doubts, I shall promptly disclose such fact or circumstance to both competent authorities.
I understand that with regard to any information received from International Centre for Dispute Resolution, a division of the Ameri-
can Arbitration Association, the Japan National Tax Agency, and the U.S. Internal Revenue Service in connection with the Proceed-
ing, I and my staff, if any, are considered to be among the “persons or authorities” involved in the administration of taxes covered
by Article 26 (Exchange of Information) of the Convention. I and my staff agree to abide by and be subject to the confidentiality and
nondisclosure provisions of Articles 25[MAP] and 26[EOI] of the Convention and the applicable domestic laws of Japan and the
United States concerning the confidentiality of tax information. In the event those provisions conflict, the most restrictive condition
shall apply. I confirm that I have the legal authority to bind my staff in this matter and will ensure they are aware of their obligations
regarding confidentiality and nondisclosure. In particular, I agree that I may not disclose any information relating to the Proceeding,
except as permitted by the Convention and the domestic laws of Japan and the United States. In addition, all material received and
prepared in the course of, or relating to the Proceeding shall be considered to be information exchanged between Japan and the United
States and shall be destroyed in accordance with paragraph XIV.C of the Implementing Arrangement referenced above.
[Under penalties of perjury
9
], I hereby accept appointment as an Arbitrator in this case, and will fairly decide the matters in contro-
versy between the Competent Authorities of Japan and the United States in accordance with the Convention and the related agree-
ments referred to above. I declare that these statements and any accompanying attachments are, to the best of my knowledge and
belief, true, correct, and complete.
__________________ _________________________________________
Date Signature
__________________________________________
Printed Name
_________________________________________
Address
Sworn before me this __________ day of ________, 20___
9
Only in US.

Bulletin No. 2021–13 979 March 29, 2021
Attachment 2-1 (English Translation)
* This is the English translation of the original Japanese Nondisclosure Statement. This English translation is provided for informa-
tion purpose only.
NONDISCLOSURE STATEMENT
I hereby promise not to disclose to any person (except other concerned persons that means the presenter of the case to a compe-
tent authority and all other persons, if any, whose tax liability to either Contracting State may be directly affected by a mutual
agreement) any information received during the course of the arbitration proceeding from the either competent authorities or the
arbitration panel, other than the determination of such panel.
Signature of the Person Who Request for Arbitration
Date
Signature of the Representative of the Consolidated Subsidiary
Date
Signature of the Authorized Representative or Agent of above
Date
Instructions for Nondisclosure Statement
1. This form is used when the person who requested for mutual agreement procedure requests for arbitration and the person and his/
her authorized representatives or agents are required not to disclose any information received during the course of the arbitration
proceeding under the provision of the applicable Tax Convention.
2. Upon promising not to disclose any information, this form must be submitted with the Request for Arbitration to the Office of
Mutual Agreement Procedures of the National Tax Agency.
3. After having read the printed contents of the statement, the person who signs this form must fill in each column as follows:
(1) The person who requests for arbitration (where the person is a corporation, the representative of the corporation) must sign his/
her name in the column “Signature of the Person Who Request for Arbitration”.
(2) Where the request for arbitration concerns transactions of the consolidated subsidiary of the person who requests for arbitration,
the representative of the consolidated subsidiary must sign his/her name in the column “Signature of the Representative of the Con-
solidated Subsidiary”.
(3) Where the person who requests for arbitration (if the request for arbitration concerns transactions of the consolidated subsidiary,
the person who requests for arbitration or that consolidated subsidiary) has submitted Authorization of the Tax Representation for
mutual agreement procedure, the authorized representative for mutual agreement procedure (where the authorized representative is
a corporation, the representative of the corporation) must sign in the column “Signature of the Authorized Representative or Agent
of above”.
(4) Where there are two or more consolidated subsidiaries in (2) or authorized representatives in (3), please submit their statements
with their signatures in a separate sheet.

March 29, 2021 980 Bulletin No. 2021–13
Attachment 2-2
[Japanese text omitted]
Sample Contract between the National Tax Agency and Arbitrator
(Clauses Regarding Confidentiality)
______ (the responsible officer for this contract for the National Tax Agency, hereinafter referred to as “X”) and ______ (an arbitra-
tor, hereinafter referred to as “Y”) enter into this contract regarding the duties of an arbitration panel for a mutual agreement proce-
dure case under paragraph 5, 6 and 7 of Article 25 of the Convention between the Government of Japan and the Government of the
United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income
(hereinafter referred to as the “Duties of Arbitration Panel”) as follows.
Article...(Definitions)
The “Confidential Information” referred to in this contract means any information which X discloses to Y in connection with the
Duties of Arbitration Panel regardless of the format of the medium through which it is disclosed.
Article... (Confidentiality)
1 Y shall keep Confidential Information confidential.
2 Y may not use Confidential Information for a purpose other than the Duties of Arbitration Panel, nor may Y disclose Confi-
dential Information to, or allow it to be used by, a third party other than other arbitrators who belong to the arbitration panel or a
person who helps Y perform the Duties of Arbitration Panel (hereinafter referred to as “Y’s Staff”).
3 Y may not make a copy of Confidential Information for a purpose other than the Duties of Arbitration Panel.
4 Y shall make Y’s Staff comply with the obligations prescribed in this article.
5 Where there arises a possibility of the leakage of the Confidential Information, regardless of the cause, Y shall immediately
inform X of this fact and follow X’s instructions on how to deal with the situation.
6 Immediately after the completion of the Duties of Arbitration Panel or the termination of this contract, Y shall return all media
containing Confidential Information (including any copy or reproduction of the media and any summary or excerpt of Confiden-
tial Information) that Y has received or created in connection with the Duties of Arbitration Panel and delete all information that
may be stored on any computer, electronic device or media.
7 The provisions of this article shall survive after the termination of this contract.
Article...(Penalties for breach of contract and compensation for damages)
1 Where Y or Y’s Staff violates an obligation prescribed in this contract, X may file a claim against Y for the amount equal to the
contract amount set forth in this contract, as a penalty for breach of contract.
2 Where damages are caused on X or the National Tax Agency which includes all or any organization that belongs to the body of
the National Tax Agency such as regional taxation bureaus and tax offices (hereinafter collectively referred to as the “National
Tax Agency”) by a cause to which Y or Y’s Staff is responsible, Y shall compensate X for all such damage, in addition to paying
the penalty referred to in paragraph 1.
3 The damages referred to in paragraph 2 include any amount that the National Tax Agency is ordered to pay as a result of a
claim, court proceedings, appeal, etc. (hereinafter collectively referred to as a “Claim”) initiated by a taxpayer or a related party
of the taxpayer in connection with the mutual agreement procedure case subject to arbitration procedure and all expenses re-
quired in order for the National Tax Agency to respond to such Claim.
Article... (Cancellation of the contract)
X may cancel this contract at any time without any prior notice if Y violates the obligations prescribed in this contract or if X
finds there is a significant obstacle for Y’s fulfillment of Y’s contractual obligations.

Bulletin No. 2021–13 981 March 29, 2021
Article... (Prohibition against the transfer of rights and obligations)
Y may not transfer or assign the rights and obligations under this contract to a third party in a whole or in part, nor may Y make
rights and obligations under this contract subject to the rights of a third party in whole or in part (including, but not limited to
mortgaging such rights and obligations).
Article... (Prohibition against subcontracting and entrustment)
1 Y may not subcontract or entrust the Duties of Arbitration Panel to a third party in whole or in part.
2 With prior written consent from X, Y may use Y’s Staff to perform the Duties of Arbitration Panel. In such a case, Y is fully
liable to X for the conduct of Y’s Staff.
Article... (Resolution of Disputes)
Any dispute arising out of or in relation to this contract goes before the Tokyo District Court as the court of exclusive jurisdiction
in the first trial.
Article... (Applicable laws)
This contract is governed by, and is interpreted and executed in accordance with, Japanese laws.
Article... (Language)
The original copy of this contract means the original copy that has been drawn up in the Japanese language. Any translation of
the original copy of this contract into another language is a duplicate, and is not legally binding.

Bulletin No. 2021–13 i March 29, 2021
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

March 29, 2021 ii Bulletin No. 2021–13
Numerical Finding List
1
Bulletin 2021–13
Announcements:
2021-01, 2021-04 I.R.B. 506
2021-02, 2021-08 I.R.B. 892
2021-03, 2021-08 I.R.B. 892
2021-04, 2021-09 I.R.B. 895
2021-05, 2021-13 I.R.B. 965
Notices:
2021-01, 2021-02 I.R.B. 315
2021-03, 2021-02 I.R.B. 316
2021-04, 2021-02 I.R.B. 319
2021-02, 2021-03 I.R.B. 478
2021-05, 2021-03 I.R.B. 479
2021-07, 2021-03 I.R.B. 482
2021-09, 2021-05 I.R.B. 678
2021-06, 2021-06 I.R.B. 822
2021-08, 2021-06 I.R.B. 823
2021-11, 2021-06 I.R.B. 827
2021-12, 2021-06 I.R.B. 828
2021-13, 2021-06 I.R.B. 832
2021-10, 2021-07 I.R.B. 888
2021-15, 2021-10 I.R.B. 898
2021-16, 2021-10 I.R.B. 907
2021-18, 2021-11 I.R.B. 911
2021-19, 2021-11 I.R.B. 920
2021-20, 2021-11 I.R.B. 922
Proposed Regulations:
REG-130081-19, 2021-02 I.R.B. 321
REG-114615-16, 2021-03 I.R.B. 489
REG-111950-20, 2021-05 I.R.B. 683
REG-115057-20, 2021-05 I.R.B. 714
Revenue Procedures:
2021-01, 2020-01 I.R.B. 1
2021-02, 2020-01 I.R.B. 116
2021-03, 2020-01 I.R.B. 140
2021-04, 2020-01 I.R.B. 157
2021-05, 2020-01 I.R.B. 250
2021-07, 2020-01 I.R.B. 290
2021-09, 2020-03 I.R.B. 485
2021-08, 2020-04 I.R.B. 502
2021-10, 2020-04 I.R.B. 503
2021-12, 2020-05 I.R.B. 681
2021-11, 2020-06 I.R.B. 833
2021-15, 2020-08 I.R.B. 891
Revenue Rulings:
2021-01, 2021-02 I.R.B. 294
2021-02, 2021-04 I.R.B. 495
2021-03, 2021-05 I.R.B. 674
2021-04, 2021-06 I.R.B. 724
Revenue Rulings:—Continued
2021-05, 2021-10 I.R.B. 896
2021-06, 2021-12 I.R.B. 946
Treasury Decisions:
9925, 2021-02 I.R.B. 296
9940, 2021-02 I.R.B. 311
9932, 2021-03 I.R.B. 345
9939, 2021-03 I.R.B. 376
9941, 2021-03 I.R.B. 396
9942, 2021-03 I.R.B. 450
9937, 2021-04 I.R.B. 495
9936, 2021-05 I.R.B. 508
9943, 2021-05 I.R.B. 577
9945, 2021-05 I.R.B. 627
9946, 2021-06 I.R.B. 726
9947, 2021-06 I.R.B. 748
9948, 2021-06 I.R.B. 801
9938, 2021-07 I.R.B. 838
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin
2020–52, dated December 27, 2020.

Bulletin No. 2021–13 iii March 29, 2021
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2021–13
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin
2020–52, dated December 27, 2020.

Internal Revenue Service
Washington, DC 20224
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