In case of Japan's ODA loans, the Government of Japan generally requests the Government of any borrowing country to exempt (1) JICA (the implementing agency of Japan’s ODA) from all fiscal levies and taxes imposed in the borrowing country on and or in connection with the loan as well as interest accruing therefrom; (2) Japanese companies operating as suppliers, contractors and or consultants from all fiscal levies and taxes imposed in the borrowing country with respect to the income accruing from the supply of products and or services to be provided under the loan; (3) Japanese companies operating as suppliers, contractors and or consultants from all duties and related fiscal charges imposed in the borrowing country with respect to the import and re-export of their own materials and equipment needed for the implementation of the project; and (4) Japanese employees engaged in the implementation of the project from all fiscal levies and taxes imposed in the borrowing country on their personal income derived from Japanese companies operating as suppliers, contractors and or consultants for the implementation of the project.
In case of grant aid, the Government of Japan generally requests recipient governments to take necessary measures to ensure that custom duties, internal taxes and other fiscal levies which may be imposed in the recipient country with respect to the purchase of the products and/or services under the grant be exempted.
Where exemptions are available they are claimed in all countries.