China - Romania Tax Treaty

CAGREEMENT BETWEEN

THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA

AND

THE GOVERNMENT OF ROMANIA

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 Romania;

Desiring to promote and strengthen the economic relations between the
two countries on the basis of respecting the principles of national
sovereignty and independence, equality in rights, mutual benefit and non-interference
in domestic matters, have decided to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income;

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 imposed on by
one of the Contracting States or by its territorial-administrative units, (i.e.
local authorities) irrespective of the manner in which they are levied.
There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income including taxes on gains from the alienation
of movable or immovable property, as well as taxes on capital appreciation.
The existing taxes to which this Agreement shall apply are:

(a) in the case of Romania:

(i) the tax on income derived by individuals and corporate bodies;

(ii) the tax on the profits of foreign representation and companies
with participations of foreign capital constitued under Romanian Law;

(iii) the tax on income realized from agricultural activities (hereinafter referred to as “Romanian tax” ) .

(b) in the case of the People’s Republic of China:

(i) the individual income tax;

(ii) the income tax concerning joint ventures using Chinese and foreign investment;

(iii) the income tax concerning foreign enterprises; and

(iv) the local income tax (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 this Agreement in addition to, or in place of, those referred to in paragraph 3. 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 resonable period of
time after such changes.

ARTICLE 3 GENERAL DEFINITIONS

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

(a) the terms “a Contracting State” and “the other Contracting
State” mean Romania or China, as the context requires;

(b) the term “Romania” means Romania and used in a geographical
sense, indicates the territory of Romania including its territorial sea as well as the

exclusive economic zone and the continental shelf, over which Romania exercises sovereign rights, in accordance with the international law
and with its own law concerning the exploration and exploitation of the natural, biological and mineral resources existing in the sea waters, seabed
and sub-soil of these waters;

(c) the term “China” means the People’s Republic of China, when used in a geographical sense, means all the territory of the People’s Republic
of China, including its territorial sea, in which the laws relating to
Chinese tax apply, and all the area beyond its territorial sea, including the seabed and sub-soil thereof, over which the People’s Republic of China has jurisdiction in accordance with international law and in which the
laws relating to Chinese tax apply;

(d) the term “tax” means Romanian tax or Chinese tax, as the context requires;

(e) the term “person” includes an individual, a company and any other body of persons;

(f) the term “company” means any body corporate, including a joint venture, or any entity which is treated as a body corporate for tax purposes;

(g) 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;

(h) the term “nationals” means all individuals possessing, as the case may be, the Romanian citizenship or the Chinese nationality and all juridical persons created or organized under the laws of that Contracting State and all organizations without juridical personality treated for the purposes
of tax of that Contracting State as juridical persons created or
organized under the laws of that Contracting State;

(i) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(j) the term “competent authority” means, in the case of Romania,
the Ministry of Finance or its authorized representative and, in the case of the People’s Republic of China, the Ministry of Finance or its authorized representative.

As regards the application of this Agreement by a Contracting State, any term not defined in this Agreement shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State concerning the taxes to which this 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 Contracting 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 the competent authorities of the Contracting States shall determine by mutual agreement the Contracting State of which that individual shall be deemed to be a resident for the purposes of this 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 Contracting 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” shall include especially:

(a) a place of management;

(b) a branch;

(d) a factory;

(e) a workshop; and

(f) 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) 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 12 months;

(b) the furnishing of services, including consultancy services, by an enter prise of a Contracting State through employees or other personnel in the other Contracting State, provided that such activities continue (for the same project or a connected project) for a period or periods aggregating more than six months within any twelve-month period.

Notwithstanding  the  provisions  of  paragraphs  1  to  3,  the  term

“permanent establishment” shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;

(e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, advertisement, supply of information, scientific search or any activity of a preparatory or auxiliary character;

(f) the goods or merchandise belonging to the enterprise solely
for the purpose of display in a non-permanent and temporary trade fair or exhibition and on sale after the closing of the said fair or exhibition.

Notwithstanding the provisions of paragraphs 1 and 2, where a
person—other than an agent of an independent status to whom the provisions of
paragraph 6 apply—is acting in a Contracting State on behalf of an enterprise of the other Contracting State and has, and habitually exercises, in the first-mentioned Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for
the enterprise, unless his activities are limited to those mentioned in paragraph 4 which if exercised

through a fixed place of business, would not make that 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 Contracting 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.

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 Contracting 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 situated in the other Contracting State may be taxed in that other Contracting State.
The term “immovable property” shall have the meaning which it has
under the laws of the Contracting State 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 form 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 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 that other Contracting 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 the determination of 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 Contracting State in which the
permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for
specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise,
no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any
of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.
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 paragraphs 1 to 5, the profits to be attributed to 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 the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 INTERNATIONAL TRANSPORT

The income derived by shipping and air transport enterprises of a
Contracting State from international traffic of goods and passengers shall be exempted from tax in the other Contracting State.

ARTICLE 9 ASSOCIATED ENTERPRISES

Where

(a) 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

(b) 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.

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 Contracting 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

Contracting State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 10 per cent of the gross amount of the dividends.

The provisions of 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 taxation laws of the Contracting State of which the company making the distribution is a resident. In this context, the profits distributed by a joint company of a Contracting State to the investors are assimilated to dividends.
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 Contracting 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 Contracting 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 Contracting 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 Contracting 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 that other Contracting 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 Contracting State.

However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that Contracting 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.
Notwithstanding the provisions of paragraph 2, interest arising
in a Contracting State and derived by the Government of the other Contracting State,
a territorial administrative unit (i. e. local authority) thereof, the Central Bank
of that other Contracting State or any financial institution wholly owned by that Government, or by any resident of the other Contracting State with respect to debt-claims of that resident which are guaranteed or indirectly financed by the Government
of that other Contracting State, a territorial administrative unit (i. e. local
authority) thereof, the Central Bank of that other Contracting State or any financial institution wholly owned by that Government shall be exempt from tax in the first-mentioned Contracting 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 bussiness in the other Contracting State in which the interest arises, through a permanent
establishment situated therein, or performs in that other Contracting 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 Contracting State, a territorial administrative unit (i. e. local authority) thereof or a resident of that Contracting 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 Contracting 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 payment 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 Contracting State.
However, such royalties may also be taxed in the Contracting
State in which they arise and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 7 per cent of the gross amount of the royalties.
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 cinematograph films or films or tapes
for radio or television broadcasting, any patent, know-how, 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 Contracting 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 territorial-administrative unit
(i. e. 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 Contracting 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 Contracting State.
Gains from the alienation of any property other than immovable 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 any property, other than immovable 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 (along or together with the whole enterprise) or of such
a fixed base, may be taxed in that other Contracting State.
Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic or any property other than immovable property, pertaining to the operation of such ships or aircraft shall be
taxable only in that Contracting State.
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 25 per cent in a company which is a resident of a Contracting State may be taxed in that Contracting State.
Gains derived by a resident of a Contracting State from the
alienation of any property other than that referred to in paragraphs 1 to 5 and
arising in the other Contracting State may be taxed in that other Contracting State.

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 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 to much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or

(b) if 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 Contracting State may be taxed in
that other Contracting 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, 17, 18, 19 and 20,
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.

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 firstmentioned Contracting State if:

(a) the recipient is present in that 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, an employer who
is not a resident of that other Contracting State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in that other Contracting State.

Notwithstanding the provisions of paragraphs 1 and 2, remuneration
derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State.

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

Such income shall, however, be exempt from tax in that other Contracting State if such activities are exercised by a resident of the first-mentioned Contracting State pursuant to a programme for cultural exchange agreed upon between the
Governments of the Contracting States.

Where income in respect of personal activities exercised in a Contracting State by an entertainer or an athlete in his capacity as such accrues not to the entertainer of athlete himself but to another person who is a resident of the other Contracting State, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the first-mentioned Contracting State.

Such income shall, however, be exempt from tax in the
first-mentioned Contracting State if such activities are exercised pursuant to a programme for cultural exchange agreed upon between the Governments of the Contracting 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 Contracting State.
Notwithstanding the provisions of paragraph 1, pensions paid and
other similar payments made under a public welfare scheme which is part of the
social security system or a special fund of the Government of a Contracting State
or territorial administrative units (i. e. local authorities) thereof shall be
taxable only in that Contracting State.

ARTICLE 19 GOVERNMENT SERVICE

(a) Remuneration, other than a pension, paid by the
Government of a Contracting State or a territorial administrative unit (i. e. local
authority) thereof to an individual in respect of services rendered to the Government of that Contracting State or a territorial administrative unit (i. e. 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 Contracting State 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.

(a) Any pension paid by, or out of funds created by the
Government of a Contracting State or a territorial administrative unit (i. e. local authority) thereof an individual in respect of services rendered to the Government of that Contracting State or a territorial administrative unit (i. e. 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.

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 territorial administrative unit (i.
e. local authority) .

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 who 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 accredited educational institution or scientific research institution in the first-mentioned Contracting State shall be exempted from tax in the first-mentioned Contracting State,
for a period

not exceeding 2 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

Payments or income which a student or 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 Contracting State solely for the purpose of his education, training or acquiring special
technical experience, receives for the purpose of his maintenance, education or training shall not be taxed in that Contracting State.

ARTICLE 22 OTHER INCOME

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.
However, items of income of a resident of a Contracting State, other
than those referred to in paragraph 1, wherever arising, not dealt with in the foregoing Articles of this Agreement, shall be taxable only in that Contracting State.
The provisions of paragraphs 1 and 2 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.

ARTICLE 23

METHODS FOR ELIMINATION OF DOUBLE TAXATION

In Romania, double taxation shall be eliminated as follows:

Where a resident of Romania derives income from China which may be taxed in China in accordance with the provisions of this Agreement, the amount of Chinese tax payable in respect of that income shall be allowed as a credit against the Romanian

tax imposed on that resident. The amount of credit, however, shall not
exceed, that part of the Romanian tax which is appropriate to that income.

In China, double taxation shall be eliminated as follows:

(a) Where a resident of China derives income from Romania, the amount of Romania tax payable in respect of such income in accordance with the provisions of this Agreement shall be allowed as a credit against the Chinese tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Chinese tax computed with respect to such income in accordance with the taxation laws and regulations of China.

(b) Where the income derived from Romania is a dividend paid by a company which is a resident of Romania 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 of Romanian
tax payable by the company paying the dividend in respect of its income.

ARTICLE 24

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. 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 States.
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 based on its policy or on account of civil status or family responsabilities which it grants to its own residents.
Except where the provisions 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 Contracting 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 Contracting 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 Contracting State are or may be subjected.

ARTICLE 25

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 laws of those Contracting 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 24, to that of the Contracting State of which he is a national. The case must be presented within 2 years from the first notification of the action resulting in taxation not in accordance with the provisions of this 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 provisions of this Agreement. Any agreement reached shall be
implemented notwithstanding any time limits in the domestic laws 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 this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this 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 this Agreement. When it seems advisable for the purpose of reaching agreement, the representatives of the competent authorities of both Contracting States may meet together for an oral exchange of opinions.

ARTICLE 26 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 this

Agreement, insofar as the taxation thereunder is not contrary to this Agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information so exchanged
shall be treated as secret and shall be disclosed only to persons or authorities involved in the assessment or collection of the taxes covered by this Agreement,
including courts involved in the determination of appeals in relation to the said
taxes. Such information may be disclosed in public court preceedings or in juridical decisions.

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 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; or

(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.

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 from the
date of exchange of diplomatic notes by both Contracting States confirming the completion of procedures required by their respective laws for the entry into
force of this Agreement have been exchanged. This Agreement shall have effect as regards income arising in the tax year beginning on or after the first day of January, in the calendar year next following that in which this Agreement enters into force.

ARTICLE 29 TERMINATION

This Agreement shall continue in effect 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 to the other Contracting State, through the diplomatic channel, written notice of termination. In such event this Agreement shall cease to have effect as regards
income derived 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.

DONE at Beijing on 16 January 1991, in duplicate in the Chinese,
Romanian and English languages, all three texts being equally authentic; in case
there is any divergence of interpretation of this Agreement, the English text shall prevail.

For the Government For the Government of the People’s Republic of China of Romania

China - Romania Tax Treaty

Disclaimer