1、UNITEDSTATES-THEPEOPLESREPUBLICOFCHINAINCOMETAXCONVENTIONAgreementAndRelatedProtocolSignedatBeijingonApril30,1984;SecondProtocolSignedatBeijingonMay10,1986;RatificationAdvisedbyTheSenateofTheUnitedStatesofAmericaonJuly24,1986;InstrumentsofRatificationEx
2、changedonOctober22,1986;EnteredintoForceonJanuary1,1987.GENERALEFFECTIVEDATEUNDERARTICLE27:1JANUARY1987TABLEOFARTICLESArticle1-PersonsCoveredArticle2-TaxesCoveredArticle3-DefinitionsArticle4-ResidenceArticle5-PermanentEstablishmentArticle6-IncomefromRealProper
3、tyArticle7-BusinessProfitsArticle8-RelatedEnterprisesArticle9-DividendsArticle10-InterestArticle11-RoyaltiesArticle12-GainsArticle13-IndependentPersonalServicesArticle14-DependentPersonalServicesArticle15-DirectorsFeesArticle16-ArtistesandAthletesArticle17-Pensionsand
4、AnnuitiesArticle18-GovernmentEmployeesandPensionsArticle19-Teachers,ProfessorsandResearchersArticle20-StudentsandTraineesArticle21-OtherIncomeArticle22-EliminationofDoubleTaxationArticle23-NondiscriminationArticle24-MutualAgreementArticle25-ExchangeofInformationArtic
5、le26-DiplomatsandConsularOfficersArticle27-EntryintoForceArticle28-TerminationProtocol1-of30April,1984LetterofSubmittal-of24July,1984LetterofTransmittal-of10August,1984NotesofExchange-of30April,1984Protocol2-of10May,1986LetterofSubmittal(Protocol2)-of20M
6、ay,1986LetterofTransmittal(Protocol2)-of5June,1986The“SavingClause”-Paragraph2oftheProtocol1of30April,1984TAXAGREEMENTWITHTHEPEOPLESREPUBLICOFCHINAMESSAGEFROMTHEPRESIDENTOFTHEUNITEDSTATESTRANSMITTINGTHEAGREEMENTBETWEENTHEGOVERNMENTOFTHEUNITEDSTATESOFA
7、MERICAANDTHEGOVERNMENTOFTHEPEOPLESREPUBLICOFCHINAFORTHEAVOIDANCEOFDOUBLETAXATIONANDTHEPREVENTIONOFTAXEVASIONWITHRESPECTTOTAXESONINCOME,TOGETHERWITHASUPPLEMENTARYPROTOCOLANDEXCHANGEOFNOTES,SIGNEDATBEIJINGONAPRIL30,1984LETTEROFSUBMITTALDEPARTMENTOFSTATE
8、,Washington,July24,1984.THEPRESIDENT,TheWhiteHouse.THEPRESIDENT:Ihavethehonortosubmittoyou,withaviewtoitstransmissiontotheSenateforadviceandconsenttoratification,theAgreementbetweentheGovernmentoftheUnitedStatesofAmericaandtheGovernmentofthePeoples
9、RepublicofChinafortheAvoidanceofDoubleTaxationandthePreventionofTaxEvasionwithRespecttoTaxesonIncome,togetherwithasupplementaryprotocolandexchangeofnotes,whichyousignedatBeijingonApril30,1984.Theagreementisthefirstcompleteincometaxtreatytobesignedwi
10、ththePeoplesRepublicofChina.AlimitedtreatyaffectingthetaxationofincomefrominternationalshippingandaircraftoperationswassignedatBeijingonMarch5,1982,(97thCong.2d.Sess.,SenateTreatyDoc.No.97-24,June16,1982)andispresentlyinforce.Thepresentagreementisbase
11、donmodelincometaxtreatiespreparedbytheDepartmentoftheTreasury,theUnitedNations,andtheOECD.LikeotherUnitedStatestaxtreaties,itprovidesrulesfordeterminingtheextenttowhicheachcountrymaytaxparticulartypesofincome.Wherethehostcountrymaytax,itagreestoimpo
12、seitsincometaxinanon-discriminatorymanner.Theagreementprovidesthatthecountryofresidencewillgiveaforeigntaxcreditforincometaxpaidtotheothercountry.Ifanypotentialproblemsofdoubletaxationshouldarise,thetaxofficialsofthetwocountriesagreetoconsulttotryto
13、resolvethem.Allprovisionsoftheagreementarereciprocal.SomewillbenefitespeciallyUnitedStatesinvestors.Forinstance,investorswillknowbeforeundertakingatransactioninChinawhattheincometaxconsequenceswillbe.BusinessprofitswillnotbetaxablebyChinaunlessattributable
14、toapermanentestablishment,asdefinedintheagreement.TaxationbyChinaoftheremunerationofUnitedStatescitizenswhoareself-employedoremployedbyprivatefirmsisgenerallypermissibleonlyiftheyremaininChinamorethansixmonthsayear.Inaddition,theagreementlimitsthetax
15、whicheachcountrymayimposeondividends,interestandroyaltiesderivedbyresidentsoftheothercountrytonomorethan10percentineachcase.Theprotocolclarifiescertainprovisionsoftheagreementandalsoprovidesforcooperationbetweenthetaxofficialsofthetwocountriestoprevent
16、taxevasion.Intheaccompanyingexchangeofnotes,theUnitedStatesagreestoamendthetreatywithChinatoincludeataxsparingcreditifsuchaprovisioniseverincludedinaUnitedStatestaxtreatywithanothercountry.Presently,theUnitedStatesdoesnotpermitataxsparingcredit,i.e
17、.aforeigntaxcreditforthestatutoryfullamountoftheforeigntaxevenif,infact,thattaxhasbeenreducedorwaivedasanincentive.ItisafirmelementofU.S.policythataforeigntaxcreditbegivenonlyforforeignincometaxesactuallypaid.TheagreementprovidesthattheContracti
18、ngStatesshallnotifyeachotherinwriting,throughdiplomaticchannels,uponthecompletionoftheirrespectivelegalprocedurestobringtheagreementintoforce.Theagreementwillenterintoforceonthethirtiethdayafterthedateofthelatterofsuchnotificationsandshalltakeeffectwit
19、hrespecttoincomederivedduringtaxableyearsbeginningonorafterthefirstdayofJanuarynextfollowingthedateonwhichtheagreemententersintoforce.AtechnicalmemorandumexplainingindetailtheprovisionsoftheagreementisbeingpreparedbytheDepartmentoftheTreasuryandwillb
20、esubmittedseparatelytotheSenateCommitteeonForeignRelations.TheDepartmentoftheTreasury,withthecooperationoftheDepartmentofState,wasprimarilyresponsibleforthenegotiationoftheagreement.IthasthefullapprovalofbothDepartments.Respectfullysubmitted,GeorgeP.Schult
21、zLETTEROFTRANSMITTALTHEWHITEHOUSE,August10,1984.TotheSenateoftheUnitedStates:ItransmitherewithforSenateadviceandconsenttoratificationtheAgreementbetweentheGovernmentoftheUnitedStatesofAmericaandtheGovernmentofthePeoplesRepublicofChinafortheAvoidanceof
22、DoubleTaxationandthePreventionofTaxEvasionwithRespecttoTaxesonIncome,togetherwithasupplementaryprotocolandexchangeofnotes,signedatBeijingonApril30,1984.IalsotransmitthereportoftheDepartmentofStateontheAgreement.TheAgreementisthefirstcompleteincometa
23、xtreatybetweenthetwocountries.Alimitedtreatyconcerningthetaxationofincomefrominternationalshippingandairtransportation,signedatBeijingonMarch5,1982,wasapprovedbytheSenateonJuly27,1983andisnowinforce.TheAgreementisbasedonmodelincometaxtreatiesdeveloped
24、bytheDepartmentoftheTreasury,theOrganizationforEconomicCooperationandDevelopment,andtheUnitedNations.TheprovisionsoftheAgreementarereciprocaland,likeothertaxtreaties,representabalancedpackageofbenefitsandconcessions.TheAgreementwillcontributetoalong-runex
25、pansionofeconomicrelationsbetweenthetwocountriesbyprovidingclearrulesastothetaxconsequencesofinvestingorworkingintheothercountry.Itreducesthetaxwhichresidentsofonecountrymustpaytotheotheroncertaintypesofincome,suchasdividends,interest,androyaltiesand
26、provideslimitedexemptionsforvisitingteachers,researchersandstudents.TheAgreementalsoassuresnondiscriminatorytaxationinthehostcountry,and,providesamechanismforcooperationbetweenthetaxauthoritiestotrytoresolveanypotentialproblemsofdoubletaxation.Irecommendthat
27、theSenategiveearlyandfavorableconsiderationtotheAgreementandgiveitsadviceandconsenttoratification.RONALDREAGAN.AGREEMENTBETWEENTHEGOVERNMENTOFTHEUNITEDSTATESOFAMERICAANDTHEGOVERNMENTOFTHEPEOPLESREPUBLICOFCHINAFORTHEAVOIDANCEOFDOUBLETAXATIONANDTHEPREVEN
28、TIONOFTAXEVASIONWITHRESPECTTOTAXESONINCOMETheGovernmentoftheUnitedStatesofAmericaandtheGovernmentofthePeoplesRepublicofChina,DesiringtoconcludeanAgreementfortheavoidanceofdoubletaxationandthepreventionoftaxevasionwithrespecttotaxesonincome,Haveagree
29、dasfollows:ARTICLE1(PersonsCovered)ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.ARTICLE2(TaxesCovered)1.ThetaxestowhichthisAgreementappliesare(a)inthePeoplesRepublicofChina:(I)theindividualincometax;(ii)theincome
30、taxconcerningjointventureswithChineseandforeigninvestment;(iii)theincometaxconcerningforeignenterprises;(iv)thelocalincometax(hereinafterreferredtoasChinesetax).(b)intheUnitedStatesofAmerica:theFederalincometaxesimposed(hereinafterreferredtoasUnitedStates
31、tax).2.TheAgreementshallapplyalsotoanyidenticalorsubstantiallysimilartaxeswhichareimposedafterthedateofsignatureoftheAgreementinadditionto,orinplaceof,thosereferredtoinparagraph1.Withinanappropriatetimeperiod,thecompetentauthoritiesoftheContractingSt
32、atesshallnotifyeachotherofanysubstantialchangeswhichhavebeenmadeintheirrespectivetaxationlaws.ARTICLE3(Definitions)1.InthisAgreement,unlessthecontextotherwiserequires,(a)thetermthePeoplesRepublicofChina,whenusedinageographicalsense,meansalltheterritory
33、ofthePeoplesRepublicofChina,includingitsterritorialsea,inwhichthelawsrelatingtoChinesetaxareinforce,andalltheareabeyonditsterritorialsea,includingthesea-bedandsubsoilthereof,overwhichthePeoplesRepublicofChinahasjurisdictioninaccordancewithinternational
34、lawandinwhichthelawsrelatingtoChinesetaxareinforce;(b)thetermtheUnitedStatesofAmerica,whenusedinageographicalsense,meansalltheterritoryoftheUnitedStatesofAmerica,includingitsterritorialsea,inwhichthelawsrelatingtoUnitedStatestaxareinforce,andall
35、theareabeyonditsterritorialsea,includingtheseabedandsubsoilthereof,overwhichtheUnitedStatesofAmericahasjurisdictioninaccordancewithinternationallawandinwhichthelawsrelatingtoUnitedStatestaxareinforce;(c)thetermsaContractingStateandtheotherContractingS
36、tatemeanthePeoplesRepublicofChinaortheUnitedStatesofAmerica,asthecontextrequires;(d)thetermtaxmeansChinesetaxorUnitedStatestax,asthecontextrequires;(e)thetermpersonincludesanindividual,acompany,apartnershipandanyotherbodyofpersons;(f)thetermcompany
37、meansanybodycorporateoranyentitywhichistreatedasabodycorporatefortaxpurposes;(g)thetermsenterpriseofaContractingStateandenterpriseoftheotherContractingStatemeanrespectivelyanenterprisecarriedonbyaresidentofaContractingStateandanenterprisecarriedonby
38、aresidentoftheotherContractingState;(h)thetermnationalsmeansallindividualshavingthenationalityofaContractingStateandalllegalpersons,partnershipsandotherbodiesofpersonsderivingtheirstatusassuchfromthelawinforceinaContractingState;(I)thetermcompetentau
39、thoritymeans(I)inthePeoplesRepublicofChina,theMinistryofFinanceoritsauthorizedrepresentative;and(ii)intheUnitedStatesofAmerica,theSecretaryoftheTreasuryorhisauthorizedrepresentative.2.AsregardstheapplicationoftheAgreementbyaContractingStateanytermnotd
40、efinedthereinshall,unlessthecontextotherwiserequires,havethemeaningwhichithasunderthelawsofthatContractingStateconcerningthetaxestowhichtheAgreementapplies.ARTICLE4(Residence)1.ForthepurposesofthisAgreement,thetermresidentofaContractingStatemeansanyper
41、sonwho,underthelawsofthatContractingState,isliabletotaxthereinbyreasonofhisdomicile,residence,placeofheadoffice,placeofincorporationoranyothercriterionofasimilarnature.2.Wherebyreasonoftheprovisionsofparagraph1anindividualisaresidentofbothContracti
42、ngStates,thenthecompetentauthoritiesoftheContractingStatesshalldeterminethroughconsultationstheContractingStateofwhichthatindividualshallbedeemedtobearesidentforthepurposesofthisAgreement.3.Wherebyreasonoftheprovisionsofparagraph1acompanyisaresidentof
43、bothContractingStates,thenthecompetentauthoritiesoftheContractingStatesshalldeterminethroughconsultationstheContractingStateofwhichthecompanyshallbedeemedtobearesidentforthepurposesofthisAgreement,and,iftheyareunabletosodetermine,thecompanyshallnotbec
44、onsideredtobearesidentofeitherContractingStateforpurposesofenjoyingbenefitsunderthisAgreement.4.Wherebyreasonoftheprovisionsofparagraph1acompanyisaresidentoftheUnitedStatesofAmerica,and,underataxagreementbetweenthePeoplesRepublicofChinaandathirdcou
45、ntryisalsoaresidentofthatthirdcountry,thecompanyshallnotbeconsideredtobearesidentoftheUnitedStatesofAmericaforpurposesofenjoyingbenefitsunderthisAgreement.ARTICLE5(PermanentEstablishment)1.ForthepurposesofthisAgreement,thetermpermanentestablishmentmean
46、safixedplaceofbusinessthroughwhichthebusinessofanenterpriseiswhollyorpartlycarriedon.2.Thetermpermanentestablishmentincludesespecially:(a)aplaceofmanagement;(b)abranch;(c)anoffice;(d)afactory;(e)aworkshop;and(f)amine,anoilorgaswell,aquarryorany
47、otherplaceofextractionofnaturalresources.3.Thetermpermanentestablishmentalsoincludes:(a)abuildingsite,aconstruction,assemblyorinstallationproject,orsupervisoryactivitiesinconnectiontherewith,butonlywheresuchsite,projectoractivitiescontinueforaperiodofmoret
48、hansixmonths;(b)aninstallation,drillingrigorshipusedfortheexplorationorexploitationofnaturalresources,butonlyifsousedforaperiodofmorethanthreemonths;and(c)thefurnishingofservices,includingconsultancyservices,byanenterprisethroughemployeesorotherpersonn
49、elengagedbytheenterpriseforsuchpurpose,butonlywheresuchactivitiescontinue(forthesameoraconnectedproject)withinthecountryforaperiodorperiodsaggregatingmorethansixmonthswithinanytwelvemonthperiod.4.Notwithstandingtheprovisionsofparagraphs1through3,thete
50、rmpermanentestablishmentshallbedeemednottoinclude:(a)theuseoffacilitiessolelyforthepurposeofstorage,displayordeliveryofgoodsormerchandisebelongingtotheenterprise;(b)themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeo
51、fstorage,displayordelivery;(c)themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeofprocessingbyanotherenterprise;(d)themaintenanceofafixedplaceofbusinesssolelyforthepurposeofpurchasinggoodsormerchandise,orofcollecting
52、information,fortheenterprise;(e)themaintenanceofafixedplaceofbusinesssolelyforthepurposeofcarryingon,fortheenterprise,anyotheractivityofapreparatoryorauxiliarycharacter;(f)themaintenanceofafixedplaceofbusinesssolelyforanycombinationoftheactivitiesmenti
53、onedinsubparagraphs(a)through(e),providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthiscombinationisofapreparatoryorauxiliarycharacter.5.Notwithstandingtheprovisionsofparagraphs1and2,whereaperson,otherthananagentofanindependentstatust
54、owhomparagraph6applies,isactingonbehalfofanenterpriseandhasandhabituallyexercisesinaContractingStateanauthoritytoconcludecontractsinthenameoftheenterprise,thatenterpriseshallbedeemedtohaveapermanentestablishmentinthatContractingStateinrespectofanyact
55、ivitieswhichthatpersonundertakesfortheenterprise,unlesstheactivitiesofsuchpersonarelimitedtothosementionedinparagraph4which,ifexercisedthroughafixedplaceofbusiness,wouldnotmakethisfixedplaceofbusinessapermanentestablishmentundertheprovisionsofthatparagr
56、aph.6.AnenterpriseofaContractingStateshallnotbedeemedtohaveapermanentestablishmentintheotherContractingStatemerelybecauseitcarriesonbusinessinthatotherContractingStatethroughabroker,generalcommissionagentoranyotheragentofanindependentstatus,providedthatsuchpersonsareactingintheordinarycourseoftheirbusiness.However,whentheactivitiesofsuchanagentaredevotedwhollyoralmostwhollyonbehalfofthat