AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE's REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF CYPRUS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT T
颁布时间:1990-10-25
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 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 therefrom may be taxed in that other Contracting 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 Contracting 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 or a
fixed base which the employer has in the other Contracting State.
3. Notwithstanding the provisions of paragraphs 1 and 2 of this
Article, 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 in
which the place of head office (i. e. effective management) of the
employing enterprise is situated.
Article 16 Directors' Fees
Directors' fees and other 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 Contracting State.
Article 17 Entertainers 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
theatre, 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 Contracting State.
2. Where income in respect of personal activities exercised by an
entertainer of 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 both Contracting
States, shall be exempt from tax in that other Contracting State.
Article 18 Pensions
1. 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.
2. Notwithstanding the provisions of paragraph 1, pensions paid and
other similar payments made by the Government of a Contracting State or a
political subdivision or a local authority thereof under a public welfare
scheme of the social security system of that Contracting State shall be
taxable only in that Contracting State.
Article 19 Government Service
1. (a) Remuneration, other than 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
Contracting State or a political subdivision 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 political subdivision
or a local authority thereof to an individual in respect of services
rendered to the Government of that Contracting State or a political
subdivision 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
political subdivision or a local authority thereof.
Article 20 Teachers and Researchers
An individual who is, or immediately before visiting a Contracting
State was, a resident of the other Contracting State and is present in the
first-mentioned Contracting State for the primary purpose of teaching,
giving lectures or conducting research at a university, college, school or
educational institution or scientific research institution accredited by
the Government of the first-mentioned Contracting State shall be exempt
from tax in the first-mentioned Contracting State, for a period of two
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 Students and Trainees
A student, business apprentice or trainee who is or was immediately
before visiting a Contracting State a resident of the other Contracting
State and who is present in the first-mentioned Contracting State solely
for the purpose of his education, training shall be exempt from tax in
that first-mentioned Contracting State on the following payments or income
received or derived by him for the purpose of his maintenance, education
or training:
(a) payments received from sources outside that Contracting State for
the purpose of his maintenance, education, study, research or training;
(b) grants, scholarships or awards supplied by the Government, or a
scientific, educational, cultural or other tax-exempt organization; and
(c) income derived from personal services performed in that
Contracting State.
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 Contracting 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, or performs in that other Contracting
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 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 Contracting State.
Article 23 Capital
1. Capital represented by immovable property referred to in article 6,
owned by a resident of a Contracting State and situated in the other
Contracting State, may be taxed in that other Contracting State.
2. Capital represented by movable property forming part of the
business property of a permanent establishment which an enterprise of a
Contracting State has in the other Contracting State or by movable
property pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the purpose of
performing independent personal services, may be taxed in that other
Contracting State.
3. Capital represented by ships and aircraft operated in international
traffic, and any movable property pertaining to the operation of such
ships and aircraft, shall be taxable only in the Contracting State in
which the place of head office (i. e. effective management) of the
enterprise is situated.
4. All other elements of capital of a resident of a Contracting State
shall be taxable only in that Contracting State.
Article 24 Methods for the Elimination of Double Taxation
1. In the case of China, double taxation shall be eliminated as
follows:
(a) Where a resident of China derives income from or owns capital in
Cyprus, the amount of tax on that income or capital payable in Cyprus 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 or capital
computed in accordance with the taxation laws and regulations of China.
(b) Where the income derived from Cyprus is a dividend paid by a
company which is a resident of Cyprus 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 tax
paid in Cyprus by the company paying the dividend in respect of the
profits out of which the dividend is paid.
2. In the case of Cyprus, subject to the existing provisions of the
law of Cyprus regarding the deduction from tax payable in Cyprus of tax
paid in a territory outside Cyprus and to any subsequent modification of
those provisions-which shall not affect the general principle hereof and
unless a greater deduction or relief is provided under the laws of Cyprus,
tax payable in China on profits, income or gains arising in China and
capital owned shall be deducted from any Cyprus tax payable in respect of
such profits, income, gains and capital.
3. The tax paid in a Contracting State mentioned in paragraphs 1 and 2
of this Article, shall be deemed to include the tax which would have been
payable but for the legal provisions concerning tax reduction, exemption
or other tax incentives of the Contracting States for the promotion of
economic development.
For the purpose of paragraph 2 of Article 10, paragraph 2 of Article
11 and paragraph 2 of Article 12, the amount of tax shall be deemed to be
10 per cent of the gross amount of the dividend, interest and royalties.
Article 25 Non-Discrimination
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 not residents of one or both of the Contracting States.
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 Contracting State than the taxation levied
on enterprises of that other Contracting State carrying on the same
activities. The provisions of this paragraph shall not be construed as
obliging a Contracting State to grant to residents of the other
Contracting State any personal allowances, relief and reductions for
taxation purposes on account of civil status or family responsibilities
which it grants to its own residents.
3. Except where the provisions of paragraph 1 of Article 9, paragraph
6 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. Similarly, any debts of an enterprise
of a Contracting State to a resident of the other Contracting State shall,
for the purpose of determining the taxable capital of such enterprise, be
deductible under the same conditions as if they had been contracted 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. The provisions of this Article shall, notwithstanding the
provisions of Article 2, apply to taxes of every kind and description.
Article 26 Mutual Agreement Procedure
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 law 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
25, 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
the Agreement. Any agreement reached shall be implemented notwithstanding
any time limits in the domestic law of the Contracting States.
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 reaching
agreement, representatives of the competent authorities of the Contracting
States may meet together for an oral exchange of opinions.
Article 27 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 the Agreement insofar as the taxation thereunder is not
contrary to this Agreement, in particular for the prevention of evasion of
such taxes. The exchange of information is not restricted by Article 1.
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 impose on a Contracting State the obligation:
(a) to carry out administrative measures at variance with the laws and
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
(ordre public).
Article 28 Diplomatic Agents or 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 29 Entry into Force
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. This Agreement shall have effect as
respects income derived during the taxable years beginning on or after the
first day of January next following that in which this Agreement enters
into force.
Article 30 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 written notice of termination
to the other Contracting State through the diplomatic channel. In such
event this Agreement shall cease to have effect 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 representatives of the two Contracting States,
duly authorized thereto, have signed this Agreement.
DONE at Beijing on the 25th day of October, 1990, in duplicate in the
Chinese, Greek and English languages, the three texts being equally
authentic. In case of doubt, the English text shall prevail.
For the Government of For the Government of the Republic
the People's Republic of Cyprus
of China