China-U.S. Tax Treaty
United States-The People’s Republic of China Income Tax Convention (1984)
This Agreement shall apply to persons who are residents of one or both of the Contracting States (The People’s Republic of China, or United States of America, or both). The term of “resident of a Contracting State” means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of head office, place of incorporation or any other criterion of a similar nature. The term of “resident” is important because it decides who will enjoy benefits under this Agreement. “Permanent Establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. It includes office, factory, branch and so on.
It’s important to know how to levy tax to avoid double taxation. Income derived by a resident of a Contracting State from real property situated in the other Contracting State may be taxed in that other Contracting State. The provisions shall apply to income derived from the direct use, letting or using in any other form of real property. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Contracting State but only so much of them as is attributable to that permanent establishment.
Dividends, interest, and royalties are similar. All of them arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that Other Contracting State. What’s more, they may also be taxed in the Contracting State in which they arise and there is also a 10% limitation. Gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6 and situated in
This Agreement shall apply to persons who are residents of one or both of the Contracting States (The People’s Republic of China, or United States of America, or both). The term of “resident of a Contracting State” means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of head office, place of incorporation or any other criterion of a similar nature. The term of “resident” is important because it decides who will enjoy benefits under this Agreement. “Permanent Establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. It includes office, factory, branch and so on.
It’s important to know how to levy tax to avoid double taxation. Income derived by a resident of a Contracting State from real property situated in the other Contracting State may be taxed in that other Contracting State. The provisions shall apply to income derived from the direct use, letting or using in any other form of real property. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other Contracting State but only so much of them as is attributable to that permanent establishment.
Dividends, interest, and royalties are similar. All of them arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that Other Contracting State. What’s more, they may also be taxed in the Contracting State in which they arise and there is also a 10% limitation. Gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6 and situated in