Article 14 Independent Personal Services 　　1.Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in one of the following circumstances, when such income may also be taxed in the other Contracting State: 　　(a)if his stay in the other State is for a period or periods amounting to or exceeding in the aggregate 183 days in the calendar year concerned; 　　(b)if the remuneration for his services in the other State is either derived from residents of that State or borne by a permanent establishment which a person not resident in that State has in that State and which, in either case exceeds US $ 4000 or the equivalent in Malaysian ringgit or the equivalent in Chinese RMB in the calendar year concerned, notwithstanding that this stay in that State is for a periods or period amounting to less than 183 days during that calendar year. 　　2.The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. 　　Article 15 Dependent Personal Services 　　1.Subject to the provisions of Articles 16, 17, 18, 19, 20 and 21, salaries, wages and other simliar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 　　2.Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: 　　(a)the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and 　　(b)the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State; and 　　(c)the remuneration is not borne by a permanent establishment which the employer has in the other Contracting State. 　　3.Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, may be taxed in the Contracting State of which the enterprise is a resident. 　　Article 16 Directors' Fees 　　Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State, may be taxed in that other State. 　　Article 17 Artistes and Athletes 　　1.Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theater, motion picture, radio or television artiste, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 　　2.Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised. 　　3.Notwithstanding the provisions of paragraphs 1 and 2, income derived by entertainers or athletes who are residents of a Contracting State from the activities exercised in the other Contracting State under a plan of cultural exchange between the Governments of the both Contracting States shall be exempt from tax in that other State. 　　Article 18 Pensions 　　1.Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration or an annuity for past employment paid to a resident of a Contracting State shall be taxable only in that State. 　　2.Notwithstanding the provisions of paragraph 1, pensions paid and other similar payments made by the Government of a Contracting State or a local authority thereof under a public welfare scheme of the social security system of that State shall be taxable only in that State. 　　Article 19 Government Service 　　1.(a)Remuneration, other than a pension, paid by the Government of a Contracting State or a political subdivision, or a local authority thereof to an individual in respect of services rendered to the Government of that State, a political subdivision, or a local authority thereof shall be taxable only in that State. 　　(b)However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that other State who: 　　(i)is a national of that other State; or 　　(ii)did not become a resident of that other State solely for the purpose of rendering the services. 　　2.(a)Any pension paid by, or out of funds created by, the Government of a Contracting State, a political subdivision, or a local authority thereof to an individual in respect of services rendered to the Government of that State, a political subdivision, or a local authority thereof shall be taxable only in that State. 　　(b)However, such pension may be taxable in the other Contracting State if the individual is a resident of, and a national of, that other 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, a political subdivision, or local authority thereof. 　　Article 20 Teachers and Researchers 　　1.An individual who is a resident of a Contracting State immediately before making a visit to the other Contracting State, and who, at the invitation of any university, college, school or other similar educational institution or scientific research institution visits that other State for a period not exceeding three years solely for the purpose of teaching or research or both at such educational institution or scientific research institution shall be exempt from tax in that other State on any remuneration for such teaching or research which is subject to tax in the first-mentioned State. 　　2.This Article shall not apply to income from research if such research is undertaken primarily for the private benefit of a specific person or persons. 　　Article 21 Students and Trainees 　　An individual who is a resident of a Contracting State immediately before making a visit to the other Contracting State and is temporarily present in the other State solely: 　　(a)as a student at a recognised university, college, school or other similar recognised educational institution in that other State; 　　(b)as a business or technical apprentice; or 　　(c)as a recipient of a grant, allowance or award for the primary purpose of study, research or training from the government of either State or from a scientific, educational, literary or charitable organisation or under a technical assistance programme entered into by the Government of either State, shall be exempt from tax in that other State on: 　　(i)all remittances from abroad for the purposes of his maintenance, education, study, research or training; 　　(ii)the amount of such grant, allowance or award; and 　　(iii)any remuneration not exceeding US $2000 or the equivalent in Malaysian ringgit or the equivalent in Chinese RMB per calendar year in respect of services in that other State provided the services are performed in connection with his study, research or training or are necessary for the purposes of his maintenance. 　　Article 22 Other Income 　　1.ltems of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State. 　　2.The provisions of paragraph 1 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, being a resident of a Contracting State, carries on business in the other Contracting State, through a permanent establishment situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 　　3.Notwithstanding the provisions of paragraphs 1 and 2, items of 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 State. 　　Article 23 Elimination of Double Taxation 　　1.In China, double taxation shall be eliminated as follows: 　　(a)where a resident of China derives income from Malaysia the amount of Malaysian tax payable on that income in Malaysia in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Chinese tax on that income computed in accordance with the taxation laws and regulations of China. 　　(b)where the income derived from Malaysia is a dividend paid by a company which is a resident of Malaysia to a company which is a resident 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 Malaysian tax payable by the company paying the dividend in respect of its income. 　　2.For the purposes of paragraph 1, the term "Malaysian tax payable" shall be deemed to include Malaysian tax which would, under the laws of Malaysia and in accordance with this Agreement, have been payable on: 　　(a)any income derived from sources in Malaysia had the income not been taxed at a reduced rate or exempted from Malaysian tax in accordance with: 　　(i)sections 54A 54B, 60A, 60B and Schedule 7A of the Income Tax Act 1968 of Malaysia; or 　　(ii)sections 21, 22, 26, 30KA and 30Q of the Investment Incentive Act 1968 of Malaysia, so far as they were in force on the date of signature of this Agreement; or 　　(iii)any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, the investment incentives laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character; and 　　(b)interest to which paragraph 3 of Article 11 applies had that interest not been exempted from Malaysian tax in accordance with that paragraph. 　　3.Subject to the laws of Malaysia regarding the deduction of a credit against Malaysian tax of tax payable in any country other than Malaysia, the Chinese tax payable under the laws of China and in accordance with this Agreement by a resident of Malaysia in respect of income derived from China shall be allowed as a credit against Malaysian tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of China to a company which is a resident of Malaysia and which owns not less than 10 per cent of the voting shares of the company paying the dividend, the credit shall take into account the Chinese tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Malaysian tax, as computed before the credit is given, which is appopriate to such item of income. 　　4.For the purposes of the credit referred to in paragraph 3, 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 China Concerning Joint Ventures Using Chinese and Foreign Investment and the provisions of Articles 3 of the detailed Rules and Regulations of the Implementation of the Income Tax Law of China Concerning Joint ventures Using Chinese and Foreign Investment; 　　(b)the provisions of Articles 4 and 5 of the Income Tax Law of China Concerning Foreign Enterprises; or 　　(c)any other similar special incentive measures designed to promote economic development in China which are in existence or any other incentives measures which way be introduced in the laws of China on or after the date of signature of this Agreement, and which may be agreed upon by the competent authorities of the Contracting States. 　　Article 24 Non-Discrimination 　　1.The 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 State in the same circumstances are or may be subjected. 　　2.The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 　　3.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 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 that first-mentioned State are or may be subjected. 　　4.Nothing in this Article shall be construed as obliging; 　　(a)a Contracting State to grant to individuals who are residents of the other Contracting State any personal allowances, reliefs and reductions for tax purposes on account of civil status or family responsibilities which it grants to its own residents; 　　(b)Malaysia to grant to nationals of China not resident in Malaysia those personal allowance, reliefs and reductions for tax purposes which are by law available on the date of signature of this Agreement only to nationals of Malaysia who are not residents in Malaysia. 　　5.Nothing in this Article shall be construed so as to prevent either Contracting State from limiting to its nationals the enjoyment of tax incentives designed to promote economic development in that State. 　　Article 25 Mutual Agreement Procedure 　　1.Where a resident of a Contracting State 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 law of those 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 the 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 the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the provisions of this Agreement. 　　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 the 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 is seems advisable for reaching agreement, representatives of the competent authorities of the Contracting States may meet together for an oral exchange of opinions. 　　Article 26 Exchange of Information 　　1.The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement, in particular for the prevention of evasion of taxes covered by this Agreement. Any information received by a Contracting State shall be treated as secret and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 　　2.In no case shall the provisions of paragraph 1 be construed so as to imposed 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 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; 　　(c)to supply information which could 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 Diplomatic and Consular Officers 　　Nothing in this Agreement shall affect the fiscal privileges of diplomatic or consular officers under the general rules of international law or under the provisions of special agreements. 　　Article 28 Entry into Force 　　1.This Agreement shall enter into force on 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 China: 　　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; 　　(b)in Malaysia: 　　as respects Malaysian tax for the year of assessment beginning on or after the first day of January in the second calendar year next following that in which this Agreement enters into force and subsequent years of assessment. 　　Article 29 Termination 　　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 China: 　　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; 　　(b)in Malaysia: 　　as respects Malaysian tax for the year of assessment beginning on or after first day of January in the second calendar year next following the year in which the notice of termination is given and subsequent years of assessment. 　　IN WITNESS WHEREOF the undersigned, duly authorised thereto, by their respective Governments, have signed this Agreement. 　　DONE in duplicate at Beijing this 23th day of November, 1985, each in Chinese, Bahasa Malaysia and the English language, the three texts being equally authentic. In the event of there being a dispute in the interpretation and the application of this Agreement, the English text shall prevail. For the Government of the People's For the Government of Malaysia Republic of China