China - Mauritius Tax Treaty
PROTOCOL TO
THE AGREEMENT BETWEEN
THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA AND
THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS FOR THE AVOIDANCE OF DOUBLE TAXATION
AND
THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the People's Republic of China and the Government
of the
Republic of Mauritius;
Desiring to conclude a Protocol to amend the Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at Beijing on 1 August 1994 (hereinafter referred to as "the Agreement");
Have agreed as follows:
ARTICLE 1
-
The following paragraph shall be added to Article 13 of the
Agreement as paragraph 5:
"5. Gains derived by a resident of a Contracting State from the
alienation of
stock, participation, or other rights in the capital of a company which is a
resident of
the other Contracting State may be taxed in that other Contracting
State if the
recipient of the gain, during the 12 month period preceding such alienation,
had a
participation, directly or indirectly, of at least 25 per cent in
the capital of that
company."
-
The existing paragraph 5 in Article 13 of the Agreement
shall be deleted and replaced by the following paragraph:
"6. Gains from the alienation of any property other than that
referred to in
paragraphs 1 to 5, shall be taxable only in the Contracting State
of which the
alienator is a resident."
ARTICLE 2
The existing Article 26 of the Agreement shall be deleted and replaced by the following Article:
“ARTICLE 26 EXCHANGE OF INFORMATION
-
The competent authorities of the Contracting States shall
exchange such
information as is foreseeably relevant for carrying out the provisions
of this
Agreement or to the administration or enforcement of the
domestic laws
concerning taxes of every kind and description imposed on behalf
of the
Contracting States or their local authorities insofar as the taxation
thereunder is
not contrary to the Agreement. The exchange of information is not restricted by
Articles 1 and 2.
-
Any information received under paragraph 1 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) concerned with the assessment or collection
of,
the enforcement or prosecution in respect of, the determination of
appeals in
relation to the taxes referred to in paragraph 1, or the oversight of the
above. 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 paragraphs 1 and 2 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).
-
If information is requested by a Contracting State in
accordance with this
Article, the other Contracting State shall use its information gathering
measures to
obtain the requested information, even though that other State may not need such
information for its own tax purposes. The obligation contained in the
preceding
sentence is subject to the limitations of paragraph 3 but in no
case shall such
limitations be construed to permit a Contracting State to decline to
supply
information solely because it has no domestic interest in such information.
-
In no case shall the provisions of paragraph 3 be construed
to permit a
Contracting State to decline to supply information solely because the
information
is held by a bank, other financial institution, nominee or person
acting in an
agency or a fiduciary capacity or because it relates to ownership
interests in a
person.”
ARTICLE 3
The Governments of the Contracting States shall notify each other,
through
diplomatic notes, of the completion of the internal legal procedures necessary
for the entry
into force of this Protocol. This Protocol shall enter into force on the date
of the later of
these notifications and shall thereupon have effect:
(a) in China, in respect of income derived during the taxable year
beginning on
or after the first day of January next following the year in which
this
Protocol enters into force;
(b) in Mauritius, in respect of income derived during the income year beginning on or after the first day of July next following the date on which this Protocol enters into force.
ARTICLE 4
This Protocol shall remain in force as long as the Agreement remains in force.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Protocol.
DONE in duplicate at Beijing this fifth day of September, 2006, in the Chinese and English languages. In case of divergence in interpretation, the English version shall prevail.
For the Government of the People's Republic of China
Xie Xuren
For the Government of the Republic of Mauritius
Paul Chong Leung