AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE's REPUBLIC OF CHINA AND THE GOVERNMENT OF AUSTRALIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON IN
颁布时间:1988-11-17
Article 11 Interest
1. Interest arising in a Contracting State, being interest of which a
resident of the other Contracting State is the beneficial owner, may be
taxed in that other State.
2. However, such interest may also be taxed in the Contracting State
in which it arises and according to the laws of that State, but the tax so
charged shall not exceed 10 per cent of the gross amount of the interest.
3. The term "interest" in this Article means interest from debt-claims
of every kind, whether or not secured by mortgage and whether or not
carrying a right to participate in the debtor's profits, and in particular
income from Government securities or from bonds or debentures, and all
other income that is assimilated to income from money lent by the law,
relating to tax, of the Contracting State in which the income arises.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting State,
carries on business in the other Contracting State in which the interest
arises, through a permanent establishment situated therein, or performs in
that other Contracting State independent personal services from a fixed
base situated therein, and the indebtedness in respect of which the
interest is paid is effectively connected with such permanent
establishment of fixed base. In such a case, the provisions of Article 7
or Article 14, as the case may be, shall apply.
5. Interest shall be deemed to arise in a Contracting State when the
payer is that Contracting State, a political subdivision or a local
authority of that State or a person who, by reason of the provisions of
paragraph 1 of Article 4, is a resident of that State. Where however, the
person paying the interest, whether the person is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the arrangement
under which the interest is paid was incurred, and such interest is borne
by such permanent establishment or fixed base, then such interest shall be
deemed to arise in the Contracting State in which the permanent
establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer and
the beneficial owner of the interest, or between both of them and some
other person, the amount of the interest paid, having regard to the
debt-claim for which it is paid, exceeds the amount which might have been
expected to have been agreed upon by the payer and the beneficial owner in
the absence of such relationship, the provisions of this Article shall
apply only to the last-mentioned amount. In such a case, the excess part
of the payments shall remain taxable according to the law, relating to
tax, of each Contracting State, but subject to the other provisions of
this Agreement.
Article 12 Royalties
1. Royalties which arise in a Contracting State and which are
beneficially owned by a resident of the other Contracting State may be
taxed in that other State.
2. Such royalties may be taxed in the Contracting State in which they
arise, and according to the laws of that Contracting State, but the tax so
charged shall not exceed 10 per cent of the gross amount of the royalties.
3. The term "royalties" in this Article means payments or credits,
whether periodical or not, and however described or computed, to the
extent to which they are made as consideration for:
(a) the use of, or the right to use, any copyright, patent, design or
model, plan, secret formula or process, trademark, or other like property
or right;
(b) the use of, or the right to use, any industrial, commercial or
scientific equipment;
(c) the supply of scientific, technical, industrial or commercial
know-how or information;
(d) the supply of any assistance that is ancillary and subsidiary to,
and is furnished as a means of enabling the application or enjoyment of,
any such property or right as is mentioned is sub-paragraph (a), any such
equipment as is mentioned in sub-paragraph (b) or any such know-how or
information as is mentioned in sub-paragraph (c);
(e) the use of, or the right to use:
(i) motion picture films;
(ii) films or video tapes for use in connection with television; or
(iii) tapes for use in connection with radio broadcasting; or
(f) giving up, wholly or partly, a right relating to the use or supply
of any property or right referred to in this paragraph.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties, being a resident of a Contracting
State, carries on business in the other Contracting State in which the
royalties arise, through a permanent establishment situated therein, or
performs in that other State independent personal services from a fixed
base situated therein, and the right or property in respect of which the
royalties are paid or credited is effectively connected with such
permanent establishment or fixed base. In such a case, the provisions of
Article 7 or Article 14, as the case may be, shall apply.
5. Royalties shall be deemed to arise in a Contracting State when the
payer is that Contracting State, a political subdivision or local
authority of that State or a person who, by reason of the provisions of
paragraph 1 of Article 4, is a resident of that State. Where, however, the
person paying the royalties, whether the person is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the liability to
pay the royalties was incurred, and the royalties are borne by that
permanent establishment or fixed base, then the royalties shall be deemed
to arise in the Contracting State in which the permanent establishment or
fixed base is situated.
6. Where, by reason of a special relationship between the payer and
the beneficial owner of the royalties or between both of them and some
other person, the amount of the royalties paid or credited, having regard
to what they are paid or credited for, exceeds the amount which might have
been expected to have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of this Article
shall apply only to the last-mentioned amount. In such a case, the excess
part of the amount of the royalties paid or credited shall remain taxable
according to the law, relating to tax, or each Contracting State, but
Subject to the other provisions of this Agreement.
Article 13 Alienation of Property
1. Income or gains derived by a resident of a Contracting State from
the alienation of real property referred to in Article 6 and, as provided
in that Article, situated in the other Contracting State may be taxed in
that other State.
2. Income or gains from the alienation of property, other than real
property referred to in Article 6, that forms part of the business
property of a permanent establishment which an enterprise of a Contracting
State has in the other Contracting State or pertains to a fixed base
available to a resident of the first-mentioned State in that other State
for the purpose of performing independent personal services, including
income or gains from the alienation of such a permanent establishment
(alone or with the whole enterprise) or of such a fixed base, may be taxed
in that other State.
3. Income or gains from the alienation of ships or aircraft operated
in international traffic, or of property other than real property referred
to in Article 6 pertaining to the operation of those ships or aircraft,
shall be taxable only in the Contracting State of which the enterprise
which operated those ships or aircraft is a resident.
4. Income or gains derived by a resident of a Contracting State from
the alienation of shares or comparable interests in a company, the assets
of which consist wholly or principally of real property in the other
Contracting State of a kind referred to in Article 6, may be taxed in that
other State.
5. Nothing in this Agreement affects the application of a law of a
Contracting State relating to the taxation of gains of a capital nature
derived from the alienation of property other than that to which any of
paragraphs 1, 2, 3 and 4 apply.
Article 14 Independent Personal Services
1. Income derived by an individual who is a resident of a Contracting
State in respect of professional services or other independent activities
of a similar character shall be taxable only in that State except in one
of the following circumstances, when the income may also be taxed in the
other Contracting State:
(a) if the individual has a fixed base regularly available to him or
her in the other Contracting State for the purpose of performing his or
her activities; in such a case, only so much of the income as is
attributable to that fixed base may be taxed in that other Contracting
State; or
(b) if the individual's stay in the other Contracting State is for a
period or periods exceeding in the aggregate 183 days in any consecutive
period of 12 months; in such a case, only so much of the income as is
derived from his or her activities performed in that other State may be
taxed in that other State.
2. The term "professional services" includes especially those
performed in the exercise of 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, 18, 19, 20 and 21,
salaries, wages and other similar remuneration derived by an individual
who is a resident of a Contracting State in respect of an employment shall
be taxable only in that Contracting State unless the employment is
exercised in the other Contracting State. If the employment is so
exercised, such remuneration as is derived from that exercise 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 any
consecutive period of 12 months;
(b) the remuneration is paid by, or on behalf of, an employer who is
not a resident of that other State; and
(c) the remuneration is not borne by a permanent establishment or a
fixed base which the employer has in that other State.
3. Notwithstanding the provisions of paragraphs 1 and 2, remuneration
derived in respect of an employment exercised aboard a ship or aircraft
operated by an enterprise of a Contracting State in international traffic,
shall be taxable only in the Contracting State of which the enterprise is
a resident.
Article 16 Directors' Fees
Directors' fees and similar payments derived by a person who is a
resident of a Contracting State in the person's 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 residents of a Contracting State as entertainers (such as
theatrical, motion picture, radio or television artistes and musicians and
athletes) from their personal activities as such exercised in the other
Contracting State may be taxed in that other State.
2. Where income in respect of the personal activities of an
entertainer as such accrues not to that entertainer 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 are exercised.
3. Notwithstanding the provisions of paragraphs 1 and 2, income
derived by entertainers who are residents of a Contracting State from
their activities as such exercised in the other Contracting State under a
plan of cultural exchange between the Governments of the Contracting
States shall be exempt from tax in that other Contracting State.
Article 18 Pensions
Subject to the provisions of paragraph 2 of Article 19, pensions paid
to a resident of a Contracting State in consideration of past employment,
and payments made to a resident of that State under the social security
system or the other Contracting State, shall be taxable only in the
first-mentioned State.
Article 19 Government Service
1. (a) Remuneration, other than a pension, paid by a Contracting State
or a political subdivision or local authority of that State to an
individual in respect of services rendered 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 that
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 citizen or 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, a Contracting
State or a political subdivision or local authority of that State to an
individual in respect of services rendered to that State or subdivision or
authority shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other
Contracting State if the individual is a resident of, and a citizen or
national of, that other State.
3. The provisions of paragraphs 1 and 2 shall not apply to
remuneration or pensions in respect of services rendered in connection
with any trade or business carried on by a Contracting State or a
political subdivision or local authority of that State. In such a case,
the provisions of Article 15, 16, 17 or 18, as the case may be, shall
apply.
Article 20 Professors and Teachers
1. Where a professor or teacher who is a resident of a Contracting
State visits the other Contracting State for a period not exceeding two
years for the purpose of teaching or carrying out advanced study or
research at a university, college, school or other educational institution
in that other State, any remuneration the person receives for such
teaching, advanced study or research shall be exempt from tax in that
other State to the extent to which that remuneration is, or upon the
application of this Article will be, subject to tax in the first-mentioned
State.
2. This Article shall not apply to remuneration which a professor or
teacher receives for conducting research if the research is undertaken
primarily for the private benefit of a specific person or persons.
Article 21 Students and Trainees
1. Where student or trainee, who is a resident of a Contracting State
or who was a resident of that State immediately before visiting the other
Contracting State and who is temporarily present in that other State
solely for the purpose of his or her education or training, receives
payments from sources outside that other State for the purpose of his or
her maintenance, education or training, those payments shall be exempt
from tax in that other State.
2.In respect of grants, scholarships and remuneration not covered by
paragraph 1, a student or trainee described in paragraph 1 shall, in
addition, be entitled during his or her education or training to the same
exemptions, reliefs or reductions in respect of taxes available to
residents of the State which he or she is visiting.
Article 22 Other Income
1. Items 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 real property as defined in paragraph 2 of Article 6, if the
beneficial owner of such income, being 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 State
independent personal services from a fixed base situated therein, 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 as
case, the provisions of Article 7 or Article 14, as the case may be, 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 Methods of Elimination of Double Taxation
1. In China, double taxation shall be eliminated as follows:
(a) Where a resident of China derives income from Australia, the
amount of tax on that income payable in Australia 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 Australia is a dividend paid by a
company which is a resident of Australia to a company which is a resident
of China and which owns not less than 10 percent of the shares of the
company paying the dividend, the credit shall take into account the tax
paid to Australia by the company paying the dividend in respect of its
income.
2. Subject to the provisions of the law of Australia from time to time
in force which relate to the allowance of a credit against Australian tax
of tax paid in a country outside Australia (which shall not affect the
general principle hereof), Chinese tax paid under the law of China and in
accordance with this Agreement, whether directly or by deduction, in
respect of income derived by a person who is a resident of Australia from
sources in China shall be allowed as a credit against Australian tax
payable in respect of that income.
3. Where a company which is a resident of China and is not a resident
of Australia for the purposes of Australian tax pays a dividend to a
company which is a resident of Australia and which controls directly or
indirectly not less than 10 per cent of the voting power of the
first-mentioned company, the credit referred to in paragraph 2 shall
include the Chinese tax paid by that first-mentioned company in respect of
that portion of its profits out of which the dividend is paid.
4. For the purpose of paragraphs 2 and 3, Chinese tax paid shall
include an amount equivalent to the amount of any Chinese tax forgone.
5. In paragraph 4, the term "Chinese tax forgone" means, subject to
paragraph 6, an amount which, under the law of China relating to Chinese
tax and in accordance with this Agreement, would have been payable as
Chinese tax on income but for an exemption from, or reduction of, Chinese
tax on that income in accordance with:
(a) Articles 5 and 6 of the Income Tax Law of the People's Republic of
China concerning Joint Ventures with Chinese and Foreign Investment and
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 with Chinese and Foreign Investment;
(b) Articles 4 and 5 of the Income Tax Law of the People's Republic of
China concerning Foreign Enterprises;
(c) Articles Ⅰ, Ⅱ, Ⅲ, Ⅳ and Ⅹ of Part Ⅰ, Articles Ⅰ, Ⅱ, Ⅲ and
Ⅳ of Part Ⅱ and Articles Ⅰ, Ⅱ and Ⅲ of Part Ⅲ of the interim
provisions of the State Council of the People's Republic of China on
reduction in or exemption from enterprise income tax and the consolidated
industrial and commercial tax for special economic zones and fourteen
coastal cities;
(d) Articles 12 and 19 of the State Council Regulations for the
Encouragement of Investment in the Development of Hainan Island;
(e) Articles 8, 9 and 10 of the State Council Regulations concerning
the Encouragement of Foreign Investment; and
(f) Articles 1, 2 and 3 of the interim provisions of the Ministry of
Finance of the People's Republic of China regarding (reduction in or
exemption from) enterprise income tax and industrial and commercial
consolidated tax for encouraging foreign investment in the coastal open
economic areas:
insofar as they were in force on, and have not been modified since, the
date of signature of this Agreement, or have been modified only in minor
respects so as not to affect their general character and any other
provision which may subsequently be made granting an exemption from or
reduction of tax which the Treasurer of Australia and the Commissioner of
the State Taxation Administration of China agree from time to time in
letters exchanged for this purpose to be of a substantially similar
character, if that provision has not been modified thereafter or has been
modified only in minor respects so as not to affect its general character.
6. In the application of paragraph 5 in relation to dividend, interest
and royalty income to which Articles 10, 11 and 12 respectively apply, the
amount of Chinese tax shall be deemed to be the amount equal to:
(a) in the case of dividends, 15 per cent of the gross amount of those
dividends;
(b) in the case of interest, 10 per cent of the gross amount of that
interest; and
(c) in the case of royalties, 15 percent of the gross amount of those
royalties, but only where the rate of tax levied under the law of China,
other than a provision specified in paragraph 5, is not less than 15
percent.
7. Paragraphs 4, 5 and 6 shall apply only in relation to income
derived in any of the first ten years of income in relation to which this
Agreement has effect by virtue of sub-paragraph (a) (ii) of Article 27 and
in any later year of income that may be agreed by the Treasurer of
Australia and the Commissioner of the State Taxation Administration of
China in letters exchanged for this purpose.
8. For the purposes of this Article, profits, income or gains derived
by a resident of a Contracting State which are taxed in the other
Contracting State in accordance with this Agreement shall be deemed to be
income arising from sources in that other State.
Article 24 Mutual Agreement Procedure
1. Where a person considers that the actions of the competent
authority of one or both of the Contracting States result or will result
for the person in taxation not in accordance with the provisions of this
Agreement, the person may, irrespective of the remedies provided by the
domestic law of those States, present a case to the competent authority of
the Contracting State of which the person is a resident. 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 claim appears to it
to be justified and if it is not itself able to arrive at a satisfactory
solution, to resolve the case by 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. Any
agreement reached shall be implemented notwithstanding any time limits in
the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour
to resolve by agreement any difficulties or doubts arising as to the
application of this Agreement.
4. The competent authorities of the Contracting States may communicate
with each other directly for the purpose of giving effect to the
provisions of this Agreement.
Article 25 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 or of the domestic laws of the Contracting States concerning
taxes covered by this Agreement, insofar as the taxation thereunder is not
contrary to this Agreement, in particular for the prevention of avoidance
or evasion of such taxes. Any information received by the competent
authority of a Contracting State shall be treated as secret in the same
manner as information obtained under the domestic laws of that State 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 this Agreement and shall be used only
for such purposes.
2. In no case shall the provisions of paragraph 1 be construed so as
to impose on the competent authority of a Contracting State the
obligation:
(a) to carry out administrative measures at variance with the laws or
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;
(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 26 Diplomatic Agents and Consular Officers
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 27 Entry into Force
This Agreement shall enter into force on the date on which the
Contracting States exchange notes through the diplomatic channel notifying
each other that the last of such things has been done as is necessary to
give this Agreement the force of law in Australia and in China, as the
case may be, and thereupon this Agreement shall have effect:
(a) in Australia:
(i) in respect of withholding tax on income that is derived by a
non-resident, in relation to income derived on or after 1 July in the
calendar year next following that in which the Agreement enters into
force;
(ii) in respect of other Australian tax, in relation to income of any
year of income beginning on or after 1 July in the calendar year next
following that in which the Agreement enters into force;
(b) in China:
in respect of income derived during any taxable year beginning on or
after 1 January next following that in which this Agreement enters into
force.
Article 28 Termination
This Agreement shall continue in effect indefinitely, but either of
the Contracting States may, on or before 30 June in any calendar year
beginning after the expiration of 5 years from the date of its entry into
force, give to the other Contracting State through the diplomatic channel
written notice of termination and, in that event, this Agreement shall
cease to be effective:
(a) in Australia:
(i) in respect of withholding tax on income that is derived by a
non-resident, in relation to income derived on or after 1 July in the
calendar year next following that in which the notice of termination is
given;
(ii) in respect of other Australian tax, in relation to income of any
year of income beginning on or after 1 July in the calendar year next
following that in which the notice of termination is given;
(b) in China:
in relation to income of any taxable year beginning on or after 1
January next following that in which the notice of termination is given.
IN WITNESS WHEREOF the undersigned, duly authorized thereto, have
signed this Agreement.
DONE in duplicate at Canberra this 17th day of November One thousand
nine hundred and eighty-eight in the Chinese and English languages, both
texts being equally authentic.
For the Government of the People's For the Government of Australia
Republic of China