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 Contracting State. Except in one of the following circumstances, when such income may also be taxed in the other Contracting State.: (a) if he has a fixed base regularly available to him in the other Contracting State. For the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State.; (b) if his stay in the other Contracting State. Is for a period or periods exceeding in the aggregate 183 days in the calendar year concerned; in that case, only so much of the income as is derived from his activities performed in that other Contracting State. May be taxed in that other Contracting State.. 　　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, 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 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 , and 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 or effective management of the 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 or any other similar 0rgan of a company which is a resident of the other Contracting State may be taxed in that other Contracting State． Article l7 Artistes and Athletes 1．Notwithstanding the provisions of Articles l4 and l5，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 activ5ties 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 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 l5，be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised． 3．Notwithstanding the provisions of paragraphs l and 2 of this Article income mentioned in this Article shall be exempt from tax in the Contracting State in Which the activity of the entertainer or athlete is exercised provided that this activity is supported in a considerable part but of public funds of this State or of the other State or the activity is exercised under a cultural agreement or arrangement between the Contracting States． Article 18 Pensions 1．Subject to the Provisions of paragraph 2 of Article l9，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 l，pensions paid and other similar payments made by the Government of a Contracting State or its 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 its p0litical subdivision or a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or its 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 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 created by , the Government of a Contracting State or its political subdivision of a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or its 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 Contracting State or its 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 other non-profit making educational institution or scientific research institution recognized by the Government of the first-mentioned Contracting State shall be exempt from tax in the first-mentioned contracting State, for a period of 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 Students and Trainees 1. 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 State solely for the purpose of his education, training, shall be exempt from tax in that first-mentioned State on : (a) payments received from abroad for the purpose of his maintenance, education or scientific, cultural or educational organizations for the purposes of his maintenance, education or training. (b) scholarships, grants, allowances and awards from governmental, charitable, scientific , cultural or educational organizations for the purposes of his maintenance, education or training. 2. In respect of remuneration from employment a student, business apprentice or trainee described in paragraph I shall be entitled during such education or training to the same exemptions, reliefs or reductions in respect of taxes available to residents or the Contracting State which he 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 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 Methods for the Elimination of Double Taxation 1. In China, double taxation shall be eliminated as follows: (a) Where a resident of China derives income from Hungary, the amount of tax in that income payable in Hungary 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 Hungary is a dividend paid by a company which is a resident of Hungary 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 to Hungary by the company paying the dividend in respect of its income. 2. In Hungary, double taxation shall be eliminated as follows: (a) Where a resident of Hungary derives income which, in accordance with the provisions of this Agreement may be taxed in China, Hungary shall, subject to the provisions of sub-paragraphs(b) and (c) , exempt such income from tax. (b) Where a resident of Hungary derives dividends which, in accordance with the provisions of Article 10, may be taxed in China, Hungary shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in China. Such deduction shall not, however, exceed that part of the Hungarian tax, as computed before the deduction is given which is attributed to such dividends derived from China. (c) Where in accordance with any provisions of the Agreement income derived by a resident of Hungary is exempt from tax in Hungary ,Hungary may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. (c) The tax paid in China as mentioned in subparagraph b) of paragraph 2 of this Article shall , in any case , be deemed to be paid at a rate of 20 per cent. Article 24 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 State. 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, reliefs 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 Article 9, paragraph 7 or 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 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 firs-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 the first-mentioned 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 25 Mutual Agreement Procedure 1. Where a person considers that the actions of one or both of the Contracting State 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 of , 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. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting State. 3. The competent authorities of the Contracting State shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application or 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 State 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 State may meet together for an oral exchange of opinions. Article 26 Exchange of Information 1. The competent authorities of the Contracting State shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting State 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 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; (d) 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 27 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 28 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 29 Termination This Agreement shall remain in force until terminated by one of the Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year following after the period of five years from the date on which the Agreement enters into force. In such event this Agreement shall cease to have effect as respects income derived during the taxable years beginning on or after the first date of January in the calendar year next following that in which the notice of termination is given. DONE at Beijing on the 17th day of June , 1992 in duplicate in the Chinese, Hungarian and English languages, all texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail. For the Government of the For the Government of the People's Republic of China Republic of Hungary