China - Macedonia Tax Treaty

AGREEMENT BETWEEN

THE GOVERNMENT OF THEPEOPLE′S REPUBLIC OF CHINA AND THE

GOVERNMENT OF THE REPUBLIC OFMACEDONIA FOR THE AVOIDANCE OF

DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES

ON INCOME AND ON CAPITALTHE GOVERNMENT OF THE PEOPLE′S REPUBLIC OF CHINA

AND THE GOVERNMENT OF THE REPUBLIC OF MACEDONIA

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital,

Have agreed as follows:

ARTICLE 1 PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or
both of the Contracting States.

ARTICLE 2 TAXES COVERED

This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner in which they are levied.
There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.
The existing taxes to which the Agreement shall apply are in particular:

in Macedonia:

i) the personal income tax;

ii) the profit tax;

iii) the property tax;

(hereinafter referred to as “Macedonian Tax”);

in China:

i) the individual income tax;

ii) the income tax for enterprises with foreign investment and foreign enterprises;

(hereinafter referred to as “Chinese tax”).

The Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws within a reasonable period of time after such changes.

ARTICLE 3 GENERAL DEFINITIONS

For the purposes of this Agreement, unless the context otherwise requires:

the term “Macedonia” means the territory of the Republic of
Macedonia, and used in geographical sense means its land, inland lake water and bottom over which it has jurisdiction or sovereign rights for the purpose of exploring, exploiting, conserving and managing natural
resources, pursuant to internal jurisdiction and international law;

the  term“China”means  the  People′s  Republic  of  China;  when  used

in geographical sense,means all the territory of the People′s Republic of China,including its territorial sea, in which the Chinese laws
relating to taxation apply, and any area beyond its territorial sea, within which the People′s Republic of China has sovereign rights of exploration for and exploitation of resources of the sea bed and its sub soil and
superjacent water resources in accordance with international law;

the terms “a Contracting State” and “the other Contracting
State” mean

Macedonia or China, as the context requires;

 the  term  “tax”  means  Macedonian  tax  or  Chinese  tax,  as  the

context requires;

 the term “person” includes an individual,  a company and  any other

body of persons;

 the  term  “company”  means  any  body  corporate  or  any  entity

which is treated as a body corporate for tax purposes;

 the terms “enterprise of a Contracting State” and  “enterprise of the

other Contracting State” mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

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 the term “national” means
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(i) any individual possessing the nationality of a Contracting State;

(ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State;

 the  term  “international  traffic”  means  any transport by a  ship

of aircraft operated by an enterprise which has its head office in a

Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State．

the term “competent authority” means;

—in the case of Macedonia, the Ministry of Finance or its authorized representative;

—in the case of China, the State Administration of Taxation or its authorized representative．

As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the Context otherwise requires, have the meaning which it has under the law of that Contracting State concerning the taxes
to which the Agreement applies.

ARTICLE 4

RESIDENT

For the purposes of this Agreement, the term “resident of a
Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of head office or any other
criterion of a similar nature
Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows;

 he  shall  be  deemed  to  be  a  resident  of  the  State  in  which

he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer(centre of vital interests);

if the State in which he has his center of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has a habitual abode;

 If he has an habitual abode in both States or in neither of them, he

shall be deemed to be a resident of the State of which he is a national;

 If  he  is  a  national  of  both  States  or  of  neither  of  them,

the competent authorities of the Contracting States shall settle the question by
mutual agreement.

Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both Contracting States, then it shall
be deemed to be a resident of the State in which its head office is situated.

ARTICLE 5 PERMANENT ESTABLISHMENT

For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
The term “permanent establishment ”includes especially;

a place of management;
a branch;
an office;
a factory;
a workshop, and

 a  mine,  an  oil  or  gas  well,  a  quarry  or  any  other  place  of

extraction of natural resources.

The term “permanent establishment” likewise encompasses;

A building site, a construction, assembly or installation project or
supervisory activities in connection therewith, but only where such site, project
or activities continue for a period of more than twelve months.

Notwithstanding the preceding provisions of this Article, the term
“permanent establishment” shall be deemed not to include;

 The use of facilities solely for the purpose of storage, display or

delivery of goods or merchandise belonging to the enterprise;

 the  maintenance  of  a  stock  of  goods  or  merchandise  belonging

to the enterprise solely for the purpose of storage, display or delivery;

 the  maintenance  of  a  stock  of  goods  or  merchandise  belonging

to the enterprise solely for the purpose of processing by another enterprise;

 the  maintenance  of  a  fixed  place  of  business  solely  for  the

purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

 the  maintenance  of  a  fixed  place  of  business  solely  for  the

purpose of carrying on, for the enterprise, any other activity of a preparatory
or auxiliary character;

 the maintenance of a fixed place of business solely for any combination

of activities mentioned in sub paragraphs 1)to 5),provided that the
overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

Notwithstanding the provisions of paragraphs 1 and 2,where a person other than an agent of an independent status to whom the paragraph 6 applies
is acting in a Contracting State on behalf of an enterprise of the other Contracting
State, has and habitually exercises an authority to conclude contracts in the name of the enterprise,

that enterprise shall be deemed to have a permanent establish pent
in the first mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the
provisions of that paragraph.

An enterprise of a Contracting State shall not be deemed to
have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the
ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph.
The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State,or which carries on business in that other State(whether through a permanent establishment or otherwise),shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6

INCOME FROM IMMOVABLE PROPERTY

 Income   derived   by   a   resident   of   a   Contracting   State

from immovable property(including income from agriculture or forestry)situated in
the other Contracting State may be taxed in that other State.

The term “immovable property” shall have the meaning which it has
under the law of the Contracting Sate in which the property in question is
situated. The term shall in any case include property accessory to immovable property,
livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and
rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded as immovable property.
The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other from of immovable property.
The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

ARTICLE 7 BUSINESS PROFITS

The profits of an enterprise of a Contracting State shall be taxable only in that 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
State, but only so much of them as is attributable to that permanent establishment.
Subject to the provisions of paragraph 3,where an enterprise of
a Contracting State carries on business in the other Contracting State
through a permanent establishment situated therein, there shall in each Contracting State
be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar
activities under the same or similar conditions and dealing wholly independently with the
enterprise of which it is a permanent establishment.
In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the
business of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment
is situated or elsewhere.
Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an
apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be
taxed by such an apportionment as may be customary. The method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
For the purposes of the preceding paragraphs, the profits to be attributed the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
Where profits include items of income which are dealt with separately in other Articles of this Agreement, then provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 INTERNATIONAL TRAFFIC

Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of head
office of the enterprise is situated.
If the place of head office of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbor of the ship is situated, or, if there is no such home harbor, in the Contracting
State of which the operator of the ship is a resident.
The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 ASSOCIATED ENTERPRISES

Where

 an enterprise of a Contracting State participates directly or

indirectly in the management, control or capital of an enterprise of the other
Contracting State, or

 the  same  persons  participate  directly  or  indirectly  in  the

management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would,
but for those conditions, have accrued to one of the enterprises, but by reason of those conditions, have not so accrued, may be included in the profits of that
enterprise and taxed accordingly.

Where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on which an enterprise of the other
Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first mentioned State if the conditions made between the two enterprises had been those which would have
been made between independent enterprises, then that other State shall make an
appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if
necessary, consult each other.

ARTICLE 10

DIVIDENDS

Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting State may be taxed in that other State.
However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 5 per cent of the gross amount of the dividends. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.

This paragraph shall not affect the taxation of the company in
respect of the profits out of which the dividends are paid.

The term “dividends” as used in this Article means income from shares, or other rights, not being debt claims, participating in profits, as well as
income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the
distribution is a resident.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on
business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are 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.
Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends
are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company′s undistributed profits to a tax on the company′s undistributed profits, even if the dividends paid or
the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11 INTEREST

Interest  arising  in  a  Contracting  State  and  paid  to  a  resident

of the other Contracting State may be taxed in that other State.

However, such interest may also be taxed in the Contracting
State in which it arises and according to the laws of that State, but if the
recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 per
cent of the gross amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
Notwithstanding the provisions of paragraph 2,interest arising in
a Contracting State and derived by the Government of the other Contracting State, a local authority and the Central Bank thereof or any financial institution wholly
owned by the Government of that other State, or by any other resident of that
other State with respect to debt claims indirectly financed by the Government of
that other State, a local authority, and the Central Bank thereof or any financial institution wholly owned by the Government of that other State, shall be exempt from tax in the first mentioned State.
The term “interest” as used in this Article means income 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 and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for
late payment shall not be regarded as interest for the purpose of this Article.
The provisions of paragraphs 1,2 and 3 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 State independent personal services from a fixed base situated therein, and the debt claim in respect of which the interest 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.
Interest shall be deemed to arise in a Contracting State when
the payer is the Government of that State, a local authority thereof or a resident of that State. Where, however, the person paying the interest, whether he 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 indebtedness on 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 State in which the permanent establishment or fixed base is situated.
Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of
the interest, having regard to the debt claim for which it is paid, exceeds the amount which would 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 case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

ARTICLE 12 ROYALTIES

Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 per
cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.
The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematography films, or films or tapes
for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial
or scientific experience.
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 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.
Royalties shall be deemed to arise in a Contracting State when the
payer is the Government of that Contracting State, a local authority thereof or a resident of that Contracting State. Where, however, the person paying the royalties, whether he 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 such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are
paid, exceeds the

amount which would 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 case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

ARTICLE 13 CAPITAL GAINS

Gains  derived  by  a  resident  of  a  Contracting  State  from  the

alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

Gains from ,the alienation of 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 of 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, including such gains
from the alienation of such a permanent establishment(alone or with the whole enterprise)or of such fixed base, may be taxed in that other State.
Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of head office of
the enterprise is situated.
Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that Contracting State.
Gains from the alienation of shares other than those mentioned
in paragraph 4 representing a participation of at least 25 per cent in a company which is a resident of a Contracting State may be taxed in that State.
Gains from the alienation of any property other than that referred to in paragraphs I to 5,shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 INDEPENDENT PERSONAL SERVICES

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 State except in one of the following circumstances, when such income may also be taxed in the other Contracting State 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 State;
his stay in the other Contracting State is for a period or periods amounting to or 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 State may be taxed in that other State.

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

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 State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State.
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:

 the  recipient  is  present  in  the  other  State  for  a  period  or

periods not exceeding in the aggregate 183 days in the calendar year concerned; and

 the  remuneration  is  paid  by,  or  on  behalf  of,  an  employer

who is not a resident of the other State; and

 the  remuneration  is  not  borne  by  a  permanent  establishment  or

a fixed base which the employer has in the other State.

Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, shall be taxable only in the Contracting State in which the place of head office 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 of a company which is a resident of the other Contracting State may be taxed in that other State.

ARTICLE 17 ARTISTES AND ATHLETES

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 a sportsman, from
his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Article 7,14 and 15,be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

Notwithstanding  the  preceding  provisions  of  this  Article,income

derived by entertainers or sportsmen who are residents of a Contracting State from the activities exercised in the other Contracting State under a plan of cultural or
sports exchange between the Governments of both Contracting States shall be exempt from tax in that other State.

ARTICLE 18 PENSIONS

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 State.
Notwithstanding the provisions of paragraph 1,pensions paid and
other similar payments made by the Government of a Contracting State or a local authority thereof under a public welfare scheme of the social security system of that State shall be taxable only in that State.

ARTICLE 19 GOVERNMENT SERVICE

1)     Remuneration,   other   than   a   pension,   paid   by   the

Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that State or local authority thereof, shall be taxable only in that State.

 However, such remuneration shall be taxable only in the other

Contracting State if the services are rendered in that other State and the individual is a resident of that other State who:

—is a national of that State; or

—did not become a resident of that State solely for the purpose of rendering the services.

1. Any pension paid by, or out of funds to which contributions are made by the Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that State or a local authority thereof shall be taxable only in that other State.

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 State.

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 local authority thereof.

ARTICLE 20 THEACHERS AND RESEARCHERS

Remuneration which an individual 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 for the primary purpose of teaching,
giving lectures or conducting research at a university, college, school or educational
institution or scientific research institution recognized by the Government of the
first mentioned State derives for the purpose of such teaching, lectures or research shall not be taxed in the first mentioned State, for a period of two years from the
date of his first arrival in the first mentioned State.
The provisions of paragraph I of this Article shall not apply
to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.

ARTICLE 21 STUDENTS AND TRAINEES

Payments   which  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 or training receives for the purpose of his maintenance,
education or training shall not be taxed in that State, provided that such
payments arise from sources outside that State.

In respect of grants, scholarships and remuneration from employment not covered by paragraph 1,a student, business apprentice or trainee described in paragraph 1 shall, in addition, be entitled during such education or training to the
same exemptions, reliefs or reductions in respect of taxes available to residents of the State which he is visiting.

ARTICLE 22 OTHER INCOME

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.
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 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.

ARTICLE 23 CAPITAL

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 State.
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 State.
Capital represented by ships or aircraft operated in
international traffic and by

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 of the enterprise is .situated.

All other elements of capital of a resident of a Contracting State, shall be taxable only in that State.

ARTICLE 24

METHODS FOR ELIMINATION OF DOUBLE TAXATION

In Macedonia, double taxation shall be eliminated as follows:

 Where a resident of Macedonia derives income or owns capital which in

accordance with the provisions of this Agreement may be taxed in China, Macedonia shall allow:

i) as deduction of the income tax of that resident an amount equal to the income tax paid in China;

ii) as deduction of the capital tax of the resident an amount equal to the capital tax paid in China;

iii) such deduction in either case shall not, however, exceed that part of the income tax or capital tax, computed before the deduction is given, which is appropriate to the income or capital which may be taxed in Macedonia.

 Where  in  accordance  with  any provision  of  this  Agreement,  the

income derived or capital owned by a resident of Macedonia is exempt from tax in Macedonia, Macedonia may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

In China, double taxation shall be eliminated as follows:

Where a resident of China derives income from Macedonia the amount of tax on that income payable in Macedonia 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.

For the purpose of allowance as a credit in a Contracting State the tax paid in the other Contracting State shall be deemed to include the tax which is otherwise payable in that other State but has been reduced or waived by that State
under its legal

provisions for tax incentives.

ARTICLE 25

NON-DISCRIMINATION

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. This provision shall, notwithstanding the provisions of Article 1,also apply to persons who are not residents of one or both of the Contrading States.
The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other Contracting State than the taxation levied on enterprises of that
other Contracting State carrying on the same activities. This provision 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.
Except where the provisions of paragraph 1 of Article 9,paragraph 7 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 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 State.
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 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.

ARTICLE 26

MUTUAL AGREEMENT PROCEDURE

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 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.

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 Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or ′doubts arising as to the
interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.
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

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 there under is not contrary to the 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 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 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.

In no case shall the provisions of paragraph I be construed so as to impose on a Contracting State the obligation:

 to  carry  out  administrative  measures  at  variance  with  the  laws

and the administrative practice of that or of the other Contracting State;

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;

 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(order public).

ARTICLE 28

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 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 and capital owned during the taxable years beginning on or after the first day of January in the calendar
year next following that in which this Agreement enters into force.

ARTICLE 30 TERMINATION

This Agreement shall remain in force 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 channels. In such event this Agreement shall cease to have effect as respects income derived and capital owned 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 undersigned, duly authorized thereto, have
signed this Agreement.

Done at Beijing on the 9th day of June, 1997, in duplicate in Chinese,
Macedonian 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 People′s Republic of China

For the Government

of the Republic of Macedonia

Xiang Huai Cheng

China - Macedonia Tax Treaty

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