Article 18 Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that Contracting State. Article 19 1.(a) Remuneration, other than pensions, paid by the Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or a local authority thereof, in the discharge of functions of a governmental nature, shall be taxable only in that Contracting State. (b)However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other Contracting State and the individual is a resident of that other Contracting State who: (i)is a national of that other Contracting State; or (ii)did not become a resident of that other Contracting State solely for the purpose of rendering the services. 2.(a)Any pension paid by, or out of funds to which contributions are made by, the Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or a local authority thereof shall be taxable only in that Contracting State. (b)However, such pension shall be taxable only in the other contracting State if the individual is a resident of, and a national of, that other Contracting State. 3.The provisions of Articles 15,16,17 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by the Government of a Contracting State or a local authority thereof. Article 20 An individual who is, or immediately before visiting a Contracting State was, a resident of the other Contracting State and is temporarily present in the first-mentioned Contracting State for the primary purpose of teaching, giving lectures or conducting research at a university, college, schood or other accredited educational institution in the first-mentioned Contracting State shall be exempt from tax in the first-mentioned Contracting State, for a period not exceeding three years from the date of his first arrival in the first-mentioned Contracting State, in respect of remuneration for such teaching, lectures or research. Article 21 Payments or income received for the purpose of his maintenance, education or raining by a student, business apprentice or trainee who is present in a Contracting State solely for the purpose of his education, training or the acquisition of his special technical experience and who is, or immediately before being so present was, a resident of the other Contracting State shall be exempt from tax of the first-mentioned Contracting State. Article 22 1.The income of a resident of a Contracting State not dealt with in the foregoing Articles of this Agreement and arising in the other Contracting State may be taxed in that other Contracting State. 2.However, items of income of a resident of a Contracting State, notdealt with in the foregoing Articles of this Agreement, and other than those referred to in paragraph 1, shall be taxable only in that Contracting State. 3.The provisions of paragraphs 1 and 2 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income who is a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therien, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. Article 23 1.In the People's Republic of China, double taxation shall be eliminated as follows: (a)Where a resident of the People's Republic of China derives income from Japan, the amount of Japanese tax payable in respect of that income in accordance with the provisions of this Agreement shall be allowed as a credit agrinst the Chinese tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Chinese tax computed as appropriate to that income in accordance with the taxation laws and regulations of the People's Republic of China. (b)Where the income derived from Japan is a dividend paid by a company which is a resident of Japan to a company which is a resident of the People's Republic of China and which owns not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account the Japanese tax payable by the company paying the dividend in respect of its income. 2.Subject to the laws of Japan regarding the allowance as a credit against Japanese tax of tax payable in any country other than Japan: (a)Where a resident of Japan derives income from the People's Republic of China and that income may be taxed in the People's Republic of China in accordance with the provisions of this Agreement, the amount of Chinese tax payable in respct of that income shall be allowed as a credit against the japanese tax imposed on that resident. The amount of credit, however, shall not exceed that part of the Japanese tax which is appropriate to that income. (b)Where the income derived from the People's Republic of China is a dividend paid by a company which is a resident of the People's Republic of China to a company which is a resident of Japan and which owns not less than 25 per cent either of the voting shares of the company paying the dividend, or of the total shares issued by that company, the credit shall take into account the Chinese tax payable by the company paying the dividend in respect of its income. 3.For the purposes of the credit referred to in sub-paragraph(a) of paragraph 2, Chinese tax shall be deemed to have been paid: (a)at the rate of 10 per cent in the case of dividends paid by a jointventure in the People's Republic of China and 20 per cent in the case of the other dividends, to which the provisions of paragraph 2 of Article 10 apply; and (b)at the rate of 10 per cent in the case of interest to which the provisions of paragraph 2 of Article 11 apply; and (c)at the rate of 20 per cent in the case of royalties to which the provisions of paragraph 2 of Article 12 apply. 4.For the purposes of the credit referred to in paragraph 2, the term"Chinese tax payable" shall be deemed to include the amount of Chinese tax which would have been paid if the Chinese tax had not been exempted, reduced or refunded in accordance with: (a)the provisions of Articles 5 and 6 of the Income Tax Law of the People's Republic of China Conecerning Joint Ventures Using Chinese and Foreign Investment and the provisions of Article 3 of the Detailed Rules and Regulations for the Implementation of the Income Tax Law of the People's Republic of China Concerning Joint Ventures Using Chinese and Foreign Investment; (b)the provisions of Articles 4 and 5 of the Income Tax Law of the People's Republic of China Concerning Foreign Enterprises; or (c)any other similar special incentive measures designed to promote economic development in the People's Republic of China which may be introduced in the laws of the People's Republic of China after the date of signature of this Agreement, and which may be agreed upon by the Governments of the Contracting States. Article 24 1.Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other Contracting State in the same circumstances are or may be subjected. The provisions of this paragraph shall, notwithstanding the provisions of Article 1, also apply to persons who are notresidents of one or both of the Contracting States. 2.The taxation on a permanent establishment which an enterprise of a Contraciing State has in the other Contracting State shall not be less favourable levied in that other Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. 3.Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned Contracting State. 4.Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned Contracting State are or may be subjected. 5.Nothing contained in this Article shall be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for tax purposes which are by law available only to residents of the first-mentioned Contracting State. Article 25 1.Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic laws of those Contracting States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement. 2.The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of he other Contracting State, with a view to the avoidance of taxation which is not in accordance with the provisions of this Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic laws of the Contracting States. 3.The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement. 4.The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of paragraphs 2 and 3. When it seems advisable for the purpose of reaching agreement, the competent authorities may meet together for an oral exchange of opinions. Article 26 1.The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement insofar as the taxation thereunder is not contrary to the provisions of this Agreement, or for the prevention of fiscal evasion with respect to such taxes. The exchange of information is not restricated by Article 1. Any information so exchanged shall be treated as secret and shall be disclosed only to persons or authorities, including courts, involved in the assessment or collection of the taxes covered by this Agreement or the determination of appeals in relation thereto. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: (a)to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State; (b)to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;or (c)to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy. Article 27 Nothing in this Agreement shall be construed as restricting in any manner any tax exemption, reduction or other allowance which are or may hereafter be accorded in a Contracting State to the nationals or residents of the other Contracting State by the laws of the first-mentioned Contracting State or any agreement between the Governments of the Contracting States. Article 28 Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements. Article 29 1.This Agreement shall enter into forceon the thirtieth day after the date on which diplomatic notes indicating the completion of internal legal procedures necessary in each country for the entry into force of this Agreement have been exchanged. 2.This Agreement shall have effect: (a)in the People's Republic of China: (i)as respects income derived during the taxable years beginning on or after the first day of January in the calendar year next following that in which this Agreement enters into force; and (ii)as respects any tax similar to the enterprise tax in Japan referred to in pragraph 2 of Article 8 levied for the taxable years beginning on or after the first day of January in the calendar year next following that in which this Agreement enters into force; (b)in Japan: as respects income derived during the taxable years beginning on or after the first day of January in the calendar year next following that in which this Agreement enters into force. Article 30 This Agreement shall continue in effect indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Contracting State, through the diplomatic channel, written notice of termination. In such event this Agreement shall cease to have effect: (a)in the People's Republic of China: (i)as respects income derived during the taxable years beginning on or after the first day of January in the calendar year next following that in which the notice of termination is given; and (ii)as respects any tax similar to the enterprise tax in Japan referred to in paragraph 2 of Article 8 levied for the taxable years beginning on or after the first day of January in the calendar year next following that in which the notice of termination is given; (b)in Japan: as respects income derived during the taxable years beginning on or after the first day of January in the calendar year next following that in which the notice of termination is given. IN WITNESS WHEREOF the undersigned, duly authorized thereto by their respective Governments, have signed this Agreement. DONE at Beijing on the day of September 6,1983, in duplicate in the Chinese, Japanese and English languages, all three taxts being equally authentic. In case of any divergence of interpretations, the English text shall prevail. For the Government of the People's For the Government of Japan Republic of China