China - Singapore Tax Treaty

AGREEMENT BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Date of Conclusion: 11 July 2007

Entry into Force: 18 September 2007

Effective Date: 1 January 2008

NOTE

The 3ʳᵈ protocol signed on 23 July 2010 entered into force on 22 October 2010 and its provisions shall take effect from 1 January 2011.

The text of the 3ʳᵈ protocol signed on 23 July 2010 is shown in Annex A.

NOTE

The 2ⁿᵈ protocol signed on 24 August 2009 entered into force on 11 December 2009 and its provisions shall take effect from 1 January 2010.

The text of the 2ⁿᵈ protocol signed on 24 August 2009 is shown in Annex B

NOTE

There was an earlier Agreement signed between the Government of the Republic of Singapore and the Government of the People’s Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The text of this Agreement which was signed on 18 April 1986 is shown in Annex C.

An Exchange of Notes signed on 29 July 1996 entered into force on 29 July 1996.

It is effective as of 1 July 1991.

The Exchange of Notes signed on 29 July 1996 is incorporated into the main text of the treaty in Annex C. The amended articles are marked with an asterisk (*).

The original text of those articles amended by the Exchange of Notes signed on 29 July 1996 is shown in Annex D.

The Government of the Republic of Singapore and the Government of the People’s Republic of China,

Desiring 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 - PERSONS COVERED

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

Article 2 - TAXES COVERED

1.     This Agreement shall apply to taxes on income imposed on behalf of a 
   

Contracting State or its local authorities, irrespective of the manner in which they are levied.

2.     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.

3.     The existing taxes to which the Agreement shall apply are in 
   

particular:

(a) in China:

(i) the Individual Income Tax

(ii) the Enterprise Income Tax (hereinafter referred to as "Chinese tax");

(b) in Singapore:

• the Income Tax

(hereinafter referred to as "Singapore tax").

4.     The Agreement shall apply also 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 significant changes which have been made in their respective taxation laws.

Article 3 - GENERAL DEFINITIONS

1.     For the purposes of this Agreement, unless the context otherwise 
   

requires:

(a) the term "China" means the People’s Republic of China, and
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;

(b) the term "Singapore" means the Republic of Singapore and
when used in a geographical sense, the term "Singapore" includes the territorial
waters of Singapore and any area extending beyond the limits of the territorial waters of Singapore, and the sea-bed and subsoil of any such area, which has
been or may hereafter be designated under the laws of Singapore and in accordance with international law as an area over which Singapore has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non- living;

(c) the terms "a Contracting State" and "the other Contracting State" mean China or Singapore as the context requires;

(d) the term "person" includes an individual, a company and any
other body of persons;

(e) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(f) 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;

(g) 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;

(h) the term "competent authority" means:

(i) in the case of China, the State Administration of Taxation or its authorised representative; and

(ii) in the case of Singapore, the Minister for Finance or his authorised representative;

(i) the term "national" means:

(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.

2.     As  regards  the  application  of  the  Agreement  at  any  time  by 
   

a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it

has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State
prevailing over a meaning given to the term under other laws of that State.

Article 4 - RESIDENT

1.     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 management, place of head office, place of
incorporation or any other criterion of a similar nature, and also includes that State, a local authority or statutory body thereof.

2.     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:

(a) he shall be deemed to be a resident only 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);

(b) if the State in which he has his centre 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 only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither
of them, he shall be deemed to be a resident only of the State of which he is a national;

(d) in any other case, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3.     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 only of the State in which its place of effective management is situated. If its place of effective management cannot be determined, the competent authorities of the Contracting States shall settle the question by mutual agreement.

Article 5 - PERMANENT ESTABLISHMENT

1.     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.

2.     The term "permanent establishment" includes especially:
   

(a) a place of management;

(b) a branch;

(c) an office;

(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.

3.     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 6 months;

(b) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for
such purpose, but only if such activities of that nature continue (for
the same or a connected project) within a Contracting State for a period or periods aggregating more than 6 months within any twelve-month period.

4.     Notwithstanding   the   preceding   provisions   of   this   
   

Article, 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, any other activity of a preparatory or auxiliary character;

(f) the maintenance of a fixed place of business solely for
any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5.     Notwithstanding the provisions of paragraphs 1 and 2, where a person 
   

• other than an agent of an independent status to whom 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 establishment 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.

6.     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, and conditions are made or imposed between that enterprise and the agent in their commercial and financial relations which differ from those which would
have been made between independent enterprises, he will not be considered an agent of an independent status within the meaning of this paragraph.

7.     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

1.     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.

2.     The term "immovable property" shall have the meaning which it has 
   

under the law 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.

3.     The provisions of paragraph 1 shall apply to income derived from the 
   

direct use, letting, or use in any other form of immovable property.

4.     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

1.     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.

2.     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.

3.     In  determining  the  profits  of  a  permanent  establishment,  
   

there shall be allowed as deductions expenses which are incurred for the purposes 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.

4.     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 principle contained in this Article.

5.     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.

6.     For  the  purposes  of  the  preceding  paragraphs,  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.

7.     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 - SHIPPING AND AIR TRANSPORT

1.     Profits  derived  by  an  enterprise  of  a  Contracting  State  
   

from the operation of ships or aircraft in international traffic shall be taxable only in that State.

2.     The provisions of paragraph 1 shall also apply to profits from the 
   

participation in a pool, a joint business or an international operating agency.

3.     Interest  derived  by  an  enterprise  of  a  Contracting  State  
   

from its deposits of moneys incidental to and connected with its operations of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft.

4.     For  the  purposes  of  this  Article,  profits  from  the  
   

operation of ships or aircraft in international traffic shall include:

(a) profits from the rental on a bareboat basis of ships or aircraft; and

(b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers), used for the transport of goods or merchandise;

where such rental or such use, maintenance or rental, as the case may be, is incidental to the operation of ships or aircraft in international traffic.

Article 9 - ASSOCIATED ENTERPRISES

1.     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.

2.     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

1.     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.

2.     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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

(a) 5 per cent of the gross amount of the dividends if the
beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;

(b) 10 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations.

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

3.     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.

4.     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.

5.     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 undistributed profits, even if the
dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

6.     The provisions of this Article shall not apply if it was the main 
   

purpose of any person concerned with the creation or assignment of the shares or other rights in respect of which the dividend is paid to take advantage of this Article by means of that creation or assignment.

Article 11 - INTEREST

1.     Interest  arising  in  a  Contracting  State  and  paid  to  a  
   

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

2.     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 beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed:

(a) 7 per cent of the gross amount of the interest if it is
received by any bank or financial institution;

(b) 10 per cent of the gross amount of the interest in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.

3.     Notwithstanding the provisions of paragraph 2, interest derived from 
   

a Contracting State is exempt from tax in that State, if the beneficial owner is:

(a) in the case of China:

(i) the Government of the People’s Republic of China and any local authority thereof;

(ii) the China Development Bank;

(iii) the Agricultural Development Bank of China;

(iv) the Export-Import Bank of China;

(v) the National Council for Social Security Fund;

(vi) the China Export & Credit Insurance Corporation; and

(vii) any institution wholly owned by the Government of China as
may be agreed from time to time between the competent authorities of the Contracting States.

(b) in the case of Singapore:

(i) the Government of the Republic of Singapore;

(ii) the Monetary Authority of Singapore;

(iii) the Government of Singapore Investment Corporation Pte Ltd;

(iv) a statutory body; and

(v) any institution wholly owned by the Government of Singapore as may be agreed from time to time between the competent authorities of the Contracting States.

4.     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.

5.     The  provisions  of  paragraphs  1  and  2  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.

6.     Interest shall be deemed to arise in a Contracting State when the 
   

payer is 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.

7.     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.

8.     The provisions of this Article shall not apply if it was the main 
   

purpose of any person concerned with the creation or assignment of the debt-claim in respect of which the interest is paid to take advantage of this Article by means of that creation or assignment.

Article 12 - ROYALTIES

1.     Royalties arising in a Contracting State and paid to a resident of 
   

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

2.     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 beneficial owner of the royalties is a resident of the other Contracting State, 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.

3.     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 computer software, 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.

4.     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.

5.     Royalties shall be deemed to arise in a Contracting State when the 
   

payer is a resident of that 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.

6.     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.

7.     The provisions of this Article shall not apply if it was the main 
   

purpose of any person concerned with the creation or assignment of rights in respect of which the royalties are paid to take advantage of this Article by means of that creation or assignment.

Article 13 - CAPITAL GAINS

1.     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.

2.     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.

3.     Gains derived by a resident of a Contracting State 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 that State.

4.     Gains derived by a resident of a Contracting State from the 
   

alienation of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.

5.     Subject  to  paragraph  4,  gains  derived  by  a  resident  of  a  
   

Contracting State from the alienation of shares, participation, or other rights in the capital
of a company or other legal person which is a resident of the other Contracting State may be taxed in that other Contracting State if the recipient of the gains, at any time during the twelve-month period preceding such alienation, had a participation, directly or indirectly, of at least 25 per cent in the capital of that company or other legal person.

6.     Gains  from  the  alienation  of  any  property  other  than  that  
   

referred to in the preceding paragraphs of this Article shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 - INDEPENDENT PERSONAL SERVICES

1.     Income  derived  by  an  individual  who  is  a  resident  of  a  
   

Contracting State from the performance of professional services or other activities of an
independent character shall be taxable only in that State unless:

(a) 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 Contracting State; or

(b) his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days within any twelve-month period;
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.

2.     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

1.     Subject  to  the  provisions  of  Articles  16,  18  and  19,  
   

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 therefrom may
be taxed in that other State.

2.     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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days within any twelve-month period; and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and

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

3.     Notwithstanding the preceding provisions of this Article, 
   

remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in
international traffic by an enterprise of a Contracting State, shall be taxable only in that 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 State.

Article 17 - ARTISTES AND SPORTSMEN

1.     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.

2.     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 Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the
entertainer or sportsman are exercised.

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.

Article 19 - GOVERNMENT SERVICE

1.(a) Salaries, wages and other similar remuneration, other than a
pension, paid by a Contracting State or a local authority or statutory body thereof to
an individual in respect of services rendered to that State or authority or body shall be taxable only in that State.

(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that
State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a local authority or statutory body thereof to an individual in respect of services
   rendered to that State or authority or body shall be taxable only in that 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 State.

3.     The  provisions  of  Articles  15,  16,  17  and  18  shall  apply  
   

to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a local authority or statutory body thereof.

Article 20 - STUDENTS AND TRAINEES

Payments which a student or business apprentice 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.

Article 21 - OTHER INCOME

Items of income not dealt with in the foregoing Articles of this Agreement and arising in a Contracting State may be taxed in that State.

Article 22 - ELIMINATION OF DOUBLE TAXATION

1.     In China, double taxation shall be eliminated as follows:
   

(a) Where a resident of China derives income from Singapore the amount of tax on that income payable in Singapore in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of the 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.

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

2.     In Singapore, double taxation shall be avoided as follows:
   

Where a resident of Singapore derives income from China which, in accordance with the provisions of this Agreement, may be taxed in China, Singapore shall, subject to its laws regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, allow the Chinese tax paid, whether directly or by deduction, as a credit against the Singapore tax payable on the income of that
resident. Where such income is a dividend paid by a company which is a resident of China to a resident of Singapore which is a company owning directly or indirectly not less than 10 per cent of the share capital of the first-mentioned company, the credit shall take into account the Chinese tax paid by that company on the portion of its profits out of which the dividend is paid.

3.     For  the  purposes  of  the  credit  referred  to  in  paragraph  2  
   

of this Article, Chinese tax payable shall be deemed to include the amount of Chinese tax which would have been paid if the Chinese tax had not been exempted, reduced or refunded in accordance with the Enterprise Income Tax Law of the People's Republic of China and the Detailed Rules and Regulations for the Implementation of such Law.

Article 23 - NON-DISCRIMINATION

1.     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, in particular with respect to residence, are or may be subjected.

2 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.

3.     Nothing in this Article shall be construed as obliging a Contracting 
   

State to grant to:

(a) residents of the other Contracting State any personal
allowances, reliefs and reductions for tax purposes which it grants to its own residents, or

(b) nationals of the other Contracting State those personal
allowances, reliefs and reductions for tax purposes which it grants to its own nationals who are not resident in that Contracting State or to such other persons as may be specified in the taxation laws of that Contracting State.

4.     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.

5.     Where  a  Contracting  State  grants  tax  incentives  to  its  
   

nationals designed to promote social or economic development in accordance with its national policy and criteria, it shall not be construed as discrimination under this Article.

6.     In this Article, the term "taxation" means taxes which are the 
   

subject of this Agreement.

Article 24 - MUTUAL AGREEMENT PROCEDURE

1.     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 23, to that of the Contracting State of which he is a national. The case must be presented within 3 years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.

2.     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.

3.     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.

4.     The competent authorities of the Contracting States may communicate 
   

with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

Article 25 - EXCHANGE OF INFORMATION

1.     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 covered by the Agreement imposed on

behalf of the Contracting States or their local authorities, insofar as the taxation thereunder is not contrary to the Agreement.

2.     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) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to the taxes referred to in paragraph 1. 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.

3.     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).

Article 26 - MISCELLANEOUS RULE

Nothing in this Agreement shall prejudice the right of each Contracting State to apply its domestic laws and measures concerning the prevention of tax avoidance, whether or not described as such, insofar as they do not give rise to taxation contrary to the Agreement.

Article 27 - MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of
members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

Article 28 - ENTRY INTO FORCE

1.     Each of the Contracting States shall notify to the other the 
   

completion of the procedures required by its law for the bringing into force of this Agreement.

2.     The Agreement shall enter into force on the date of the later of 
   

these notifications and its provisions shall have effect:

(a) in China:

in respect of income derived during the taxable years beginning on or after the first day of January next following that in which this Agreement enters into force.

(b) in Singapore:

in respect of tax chargeable for any year of assessment beginning on or after 1 January in the second calendar year following the year in which the Agreement enters into force.

3.     The Agreement between the Republic of Singapore and the People’s 
   

Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income signed on 18ᵗʰ April 1986 shall cease to have effect for all cases covered by this Agreement as from the date on which the provisions of this Agreement commence to have effect.

Article 29 - TERMINATION

This Agreement shall remain in force until terminated by a
Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after the expiration of a period of five years from the date of its entry into force. In
such event, the Agreement shall cease to have effect:

(a) in China:

in respect of 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.

(b) in Singapore:

in respect of tax chargeable for any year of assessment beginning on or after 1 January in the second calendar year following the year in which the
notice is given.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have
signed this Agreement.

DONE at Singapore on this 11ᵗʰ day of July 2007 in duplicate in the English and Chinese languages, both texts being equally authentic.

For the Government of the Republic of Singapore

For the Government of

the People’s Republic of China

MOSES LEE

Commissioner of Inland Revenue

WANG LI

Deputy Commissioner of State Administration of Taxation

PROTOCOL

At the moment of signing the Agreement between the Government of the Republic of Singapore and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes
on Income (hereinafter referred to as "the Agreement"), both sides have agreed upon the
following provisions which shall form an integral part of the Agreement.

1.     With respect to Article 3 (General Definitions)
   

The term “body of persons” in paragraph 1(d) includes a trust
established in a Contracting State if the domestic law of that Contracting State regards the trust as a tax resident of that State.

2.     With respect to Article 8 (Shipping and Air Transport)
   

(a) Residents of Singapore carrying on the operation of
ships or aircraft in international traffic shall be exempt from Business Tax or any other similar tax imposed on the gross receipts in China; and

(b) For residents of China carrying on the operation of
ships or aircraft in international traffic, supplies of international transportation shall be zero-rated in terms of the Goods and Services Tax or any other similar tax and the input tax attributable to such supplies shall be creditable in full amount in Singapore.

3.     With respect to Article 12 (Royalties)
   

For the application of the percentage rate referred to in Paragraph 2 there shall be taken as the taxable base of the royalties paid for the use of or the right to use any industrial, commercial or scientific equipment, 60 per cent of the gross amount of these payments.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Protocol.

DONE at Singapore on this 11ᵗʰ day of July 2007 in duplicate in
the English and Chinese languages, both texts being equally authentic.

For the Government of the Republic of Singapore

For the Government of

the People’s Republic of China

MOSES LEE

Commissioner of Inland Revenue

WANG LI

Deputy Commissioner of State Administration of Taxation

ANNEX A

THE THIRD PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE AND

THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE AVOIDANCE OF DOUBLE TAXATION AND

THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of Singapore and the Government of the People’s Republic of China,

Having regard to the Agreement between the Government of the Republic of Singapore and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed at Singapore on 11ᵗʰ day of July 2007 (hereinafter referred to as “the Agreement”),

Have agreed that the following provisions shall form an integral part of the Agreement:

Article 1

With respect to Article 25 of the Agreement, paragraphs 1, 2 and 3
shall be deleted and replaced by the following:

“1. 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 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.

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.

3.     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).

4.     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.

5.     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 2

The Contracting States shall notify each other through diplomatic channels that the procedures required by its laws for the entry into force of this Third Protocol have been complied with. This Third Protocol shall enter into force on the date of the receipt of the later notification. The provisions of this Third Protocol shall have effect in respect of taxes relating to taxable periods beginning on or after 1 January of the calendar year next following the year of the entry into force of this Third Protocol.

IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol.

DONE at Beijing on this 23ʳᵈ day of July, 2010 in duplicate, in
the Chinese and English languages, both texts being equally authentic.

For the Government of the Republic of Singapore

For the Government of

the People’s Republic of China

MOSES LEE

Commissioner of Inland Revenue

WANG LI

Deputy Commissioner of State Administration of Taxation

ANNEX B

THE SECOND PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA 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 Singapore,

Having regard to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed at Singapore on 11ᵗʰ day of July 2007 (hereinafter referred to as "the Agreement"),

Have agreed that the following provisions shall form an integral part of the Agreement:

Article 1

With respect to Article 5 of the Agreement:

In respect of paragraph 3 (b), the term “6 months” shall be deleted and replaced by “183 days”.

Article 2

With respect to Article 11 of the Agreement:

1.     Paragraph 3 shall be deleted and replaced by the following:
   

“3. Notwithstanding the provisions of paragraph 2, interest derived
from a Contracting State is exempt from tax in that State, if the beneficial owner is:

(a) in the case of China:

(i) the Government of the People’s Republic of China and any local authority thereof;

(ii) the People’s Bank of China;

(iii) the China Development Bank;

(iv) the Agricultural Development Bank of China;

(v) the Export-Import Bank of China;

(vi) the National Council for Social Security Fund;

(vii) the China Export & Credit Insurance Corporation; and

(viii) any institution wholly owned by the Government of China as
may be agreed from time to time between the competent authorities of the Contracting States;

provided that in the case of paragraph 3(a)(ii) to (vii), the entity or fund is wholly owned by the Chinese Government and not conducting commercial activities.

(b) in the case of Singapore:

(i) the Government of the Republic of Singapore;

(ii) the Monetary Authority of Singapore;

(iii) the Government of Singapore Investment Corporation Pte Ltd;

(iv) a statutory body; and

(v) any institution wholly owned by the Government of Singapore as may be agreed from time to time between the competent authorities of the Contracting States;

provided that in the case of paragraph 3(b)(ii) to (iv), the entity
is a body constituted by an Act of Parliament in Singapore or wholly owned by
the Government of Singapore, not conducting commercial activities.”

2.     Interest  derived  from  a  Contracting  State  before  1ˢᵗ  January 
   

2011 from any loan arrangement signed before 18ᵗʰ September 2007 is exempt from tax in
that State if the beneficial owner is:

(a) in the case of China:

(i) the China International Trust and Investment Corporation; and

(ii) the head office of the Bank of China.

(b) in the case of Singapore:

(i) the head office of the Development Bank of Singapore.

Article 3

With respect to Article 22 of the Agreement:

In respect of the provisions of paragraph 1(b), the term “10 per
cent” shall be deleted and replaced by “20 per cent”.

Article 4

The Contracting States shall notify each other through diplomatic channels that the procedures required by its laws for the entry into force of this Second Protocol have been complied with. This Second Protocol shall enter into force on the date of the receipt of the later notification.

IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol.

DONE at Singapore on this 24ᵗʰ day of August 2009, in duplicate, in the Chinese and English languages, both texts being equally authentic.

For the Government of the Republic of Singapore

For the Government of

the People’s Republic of China

MOSES LEE

Commissioner of Inland Revenue

WANG LI

Deputy Commissioner of State Administration of Taxation

ANNEX C

The Government of the Republic of Singapore and the Government of the People’s Republic of China,

Desiring 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

1.     This Agreement shall apply to taxes on income imposed on behalf of a 
   

Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2.     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 and taxes on capital appreciation.

3. The existing taxes to which the Agreement shall apply are: (a)* in the People's Republic of China:

(i) the individual income tax;

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

(iii) the local income tax

(hereinafter referred to as "Chinese tax");

(b) in the Republic of Singapore: the income tax

(hereinafter referred to as "Singapore tax").

4.     This 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, the existing taxes 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 reasonable period of time after such changes.

Article 3 - General definitions

1.     For the purposes of this Agreement, unless the context otherwise 
   

requires:

(a) the term "China" means the People's Republic of China;

(b) the term "Singapore" means the Republic of Singapore;

(c) the terms "a Contracting State" and "the other Contracting State" mean China or Singapore as the context requires;

(d) the term "tax" means Chinese tax or Singapore tax, as the context requires;

(e) the term "person" includes an individual, a company and any
other body of persons which is treated as an entity for tax purposes;

(f) the term "company" means any body corporate 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 "national" means:

(i) all individuals possessing the nationality of a Contracting State;

(ii) all legal persons, partnerships and associations deriving
their status as such from the laws in force in a Contracting State;

(i) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which is a resident 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
China, the Ministry of Finance or its authorized representative and, in the case of
Singapore, the Minister of Finance or his authorized representative.

2.     As  regards  the  application  of  this  Agreement  by  a  
   

Contracting State, any term not defined therein 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

1.     For the purposes of this Agreement, the term "resident of a 
   

Contracting State" means any person who is liable to tax as a resident for tax purposes of
that Contracting State by reason of his domicile, residence, place of head office, place of control and management or any other criterion of a similar nature in accordance with the tax law of that Contracting State.

2.     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:

(a) 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 (hereinafter referred to as his "centre of vital interests");

(b) if the State in which he has his centre 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 an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3.     Where by reason of the provisions of paragraph 1 a person other than 
   

an individual is a resident of both Contracting States, then the competent authorities of the Contracting States shall determine his residential status by mutual agreement.

Article 5 - Permanent establishment

1.     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.

2.     The term "permanent establishment" includes especially:
   

(a) a place of management;

(b) a branch;

(c) an office;

(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.

3.     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 six months;

(b) the furnishing of services, including consultancy services, by an enterprise 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.

4.     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 advertising, 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, any other activity of preparatory or auxiliary character;

(f) the maintenance of a fixed place of business solely for any combination of the activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5.     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, has and habitually exercises 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 this fixed place of business a permanent establishment under the provisions of that paragraph.

6.     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. 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.

7.     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

1.     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.

2.     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.

3.     The provisions of paragraph 1 shall apply to income derived from the 
   

direct use, letting, or use in any other form of immovable property.

4.     The  provisions  of  paragraphs  1  and  3  shall  also  apply  to  
   

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

1.     The  profits  of  an  enterprise  of  a  Contracting  State  shall  
   

be taxable only in that Contracting State unless the enterprise carries on business in the
other Contracting State through a permanent establishment situated therein. If the enterprise
carries on business as aforesaid, the profits of the enterprise may be taxed in the other Contracting State but only so much of them as is attributable to that permanent establishment.

2.     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.

3.     In  determining  the  profits  of  a  permanent  establishment,  
   

there shall be allowed as deductions expenses which are incurred for the purposes 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. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses including royalties, fees, interest or other similar payments) 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 including royalties, fees, interest or other similar payments) 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.

4.     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.

5.     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.

6.     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 - Shipping and air transport

1.     Income  from  the  operation  of  ship  or  aircraft  in  
   

international traffic carried on by an enterprise which is a resident of a Contracting State shall be
exempt from tax in the other Contracting State, unless the ship or aircraft is operated solely between places within the other Contracting State.

2.     The provisions of paragraph 1 shall also apply to income derived 
   

from the participation in a pool, a joint business or an international operating agency.

3.     For the purposes of paragraphs 1 and 2 of this Article, income 
   

derived by an enterprise which is a resident of a Contracting State from the operation of ship or aircraft from the other Contracting State shall mean income from the carriage of passengers, mail, livestock or goods loaded into a ship or aircraft in that 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

1.     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.

(a) However, dividends paid by a company which is a resident of China to a resident of Singapore may also be taxed in China, and according to the laws of China, but if the recipient is the beneficial owner of the dividends the tax so charged shall not
exceed 12% of the gross amount of the dividends. Where, however, the recipient is a company or a partnership which holds directly at least 25% of the shares of the company paying the dividends, the tax so charged shall not exceed 7% of the gross amount of the dividends.

(b) Dividends paid by a company which is a resident of Singapore to a resident of China shall, if the recipient is the beneficial owner of the dividends, be exempt from any tax in Singapore which is chargeable on dividends in addition to the tax chargeable in respect of the profits or income of the company -

(i) provided that nothing in this paragraph shall affect the provisions of Singapore law under which the tax in respect of a dividend paid by a company which is a resident of Singapore from which Singapore tax has been, or has been deemed to be, deducted may be adjusted by reference to the rate of tax appropriate to the Singapore year of assessment immediately following that in which the dividend was paid;

(ii) provided further that if Singapore, subsequent to the signing of this Agreement, imposes a tax on dividends paid by a company which is a resident of Singapore which is in addition to the tax chargeable in respect of the profits or income of the company, such tax may be charged but the rate of tax so charged shall, if the recipient is the beneficial owner of the dividends, not exceed 12% of the gross amount of the dividends, and where the recipient is a company or a partnership which holds directly at least 25% of the shares of the company
paying the dividends, the tax so charged shall not exceed 7% of the gross amount of the dividends.

(c) The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations.

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

3.     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 Contracting State of which the company making the distribution is a resident.

4.     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.

5.     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

1.     Interest  arising  in  a  Contracting  State  and  paid  to  a  
   

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

2.     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:

(a) 7% of the gross amount of the interest if it is received by any bank or financial institution;

(b) 10% of the gross amount of the interest in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations.

3.     Notwithstanding the provisions of paragraph 2, interest arising in a 
   

Contracting State and paid to the Government of the other Contracting State shall be
exempt from tax in the first- mentioned Contracting State.

4.     For the purposes of paragraph 3, the term "Government" -
   

(a) in the case of Singapore means the Government of Singapore and shall include:

(i) the Monetary Authority of Singapore;

(ii) the Government of Singapore Investment Corporation Pte Ltd;

(iii) the head office of the Development Bank of Singapore;

(iv) any institution wholly or mainly owned by the Government of Singapore, as may be agreed from time to time between the competent authorities of the Contracting States;

(b) in the case of China means the Government of China and shall include:

(i) the People's Bank of China;

(ii) the China International Trust and Investment Corporation;

(iii) the head office of the Bank of China;

(iv) any institution wholly or mainly owned by the Government of China, as may be agreed from time to time between the competent authorities of the Contracting States.

5.     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.

6.     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 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.

7.     Interest  shall  be  deemed  to  arise  in  a  Contracting  State  
   

when the payer is the Government of that Contracting State, a statutory body, a local authority 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.

8.     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

1.     Royalties arising in a Contracting State and paid to a resident of 
   

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

2.     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 10% 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.

3.     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 and 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.

4.     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.

5.     Royalties  shall  be  deemed  to  arise  in  a  Contracting  State  
   

when the payer is the Government of that Contracting State, a statutory body, a local authority 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.

6.     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

1.     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.

2.     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 together with the whole enterprise) or of such a fixed base, may be taxed in that other Contracting State.

3.     Gains from the alienation of ships or aircraft operated in 
   

international traffic and movable property, pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the enterprise is a resident.

4.     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.

5.     Gains  from  the  alienation  of  shares  other  than  those  
   

mentioned in paragraph 4 representing a participation of 25% in a company which is a resident of a Contracting State may be taxed in that Contracting State.

6.     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

1.     Income derived by an individual who is 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, unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities or he is present in that other Contracting State for a period or periods exceeding in the aggregate 183 days in the calendar year concerned. If he has such a fixed base or remains in that other Contracting State for the aforesaid period or periods, the income may be taxed in that other Contracting State, but only so much of it as is attributable to that fixed base or is derived in that other Contracting State during the aforesaid period or periods.

2.     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

1.     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 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.

2.     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:

(a) the recipient is present in the 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 the other Contracting State; and

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

3.     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 enterprise is a resident.

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

1.     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.

2.     Where income in respect of personal activities exercised by an 
   

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

3.     Notwithstanding the provisions of paragraphs 1 and 2, income derived 
   

by entertainers or athletes who are residents of a Contracting State from the activities exercised in the other Contracting State shall be exempt from tax in that other Contracting State if such activities are supported, wholly or substantially, from the public funds of the Government of either Contracting State or a statutory body or a local authority thereof.

Article 18 - Pensions

1.     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.

2.     Notwithstanding   the   provisions   of   paragraph   1,   pensions  
   

paid and other similar payments made by the Government of a Contracting State or a
statutory body or a local authority thereof under a public welfare scheme of the social security system of that Contracting State shall be taxable only in that Contracting State.

Article 19 - Government service

1. (a) Remuneration, other than pension, paid by the Government of a Contracting State or a statutory body or a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or a statutory body or
   a 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.

2. (a) Any pension paid by, or out of funds created by, the Government of a Contracting State or a statutory body or a local authority thereof to an individual
   in respect of services rendered to the Government of that Contracting State or a statutory
   body or a local authority thereof shall be taxable only in that Contracting State.

(b) However, such pension may be taxable in the other Contracting State if the individual is a resident of, and a national of, that other Contracting State.

3.     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 statutory body or a local authority thereof.

Article 20 - Teachers and researchers

1.     An individual who is a resident of a Contracting State immediately 
   

before making a visit to the other Contracting State, and who, at the invitation of any university, college, school or other similar educational institution, which is approved by the competent authority in that other Contracting State, visits that other Contracting State for a period
not exceeding three years solely for the purpose of teaching or research or both at such educational institution shall be exempt from tax in that other Contracting State on his remuneration
for such teaching or research.

2.     Where  his  visits,  under  one  or  more  contracts  with  the  
   

educational institutions of the other Contracting State exceed three years, the exemption under paragraph 1 shall apply to his remuneration for such teaching or research for the first three years.

3.     This  Article  shall  not  apply  to  income  from  research  if  
   

such research is undertaken primarily for the private benefit of a specific person or persons.

Article 21 - Students and trainees

An individual who is a resident of a Contracting State immediately before making a visit to the other Contracting State and is temporarily present in the other Contracting State solely:

(a) as a student at a recognised university, college,
school or other similar recognised educational institution in that other Contracting State;

(b) as a business or technical apprentice; or

(c) as a recipient of a grant, allowance or award for the primary purpose of study, research or training from the Government of either Contracting State or from a scientific, educational, literary or charitable organisation or under a technical assistance programme entered into by the Government of either
Contracting State,

shall be exempt from tax in that other Contracting State on:

(i) all remittances from abroad for the purposes of his
maintenance, education, study, research or training;

(ii) the amount of such grant, allowance or award; and

(iii) an amount up to US$2,000 or the equivalent in Singapore
dollars or the equivalent in Chinese RMB per calendar year of any remuneration in respect of services in that other Contracting State provided the services are performed in connection with his study, research or training or are necessary for the purposes of his maintenance.

Article 22 - Other income

1.     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 Contracting State.

2.     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 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.

3.     Notwithstanding the provisions of paragraphs 1 and 2, 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.

Article 23 - Limitation of relief

1.     Where  this  Agreement  provides  (with  or  without  other  
   

conditions) that income from sources in China shall be exempt from tax, or taxed at a reduced rate in China and under the laws in force in Singapore the said income is subject to tax by reference to the amount thereof which is remitted to or received in Singapore and not by reference to the full amount thereof,

then the exemption or reduction of tax to be allowed under this Agreement in China shall apply only to so much of the income as is remitted to or received in Singapore.

2.     However,  this  limitation  does  not  apply  to  income  derived  
   

by the Government of Singapore or any person approved by the competent authority of Singapore for the purpose of this paragraph.

Article 24 - Elimination of double taxation

1.     In Singapore, double taxation shall be eliminated as follows:
   

Subject to the laws of Singapore regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, Chinese tax payable in respect of income derived from China shall be allowed as a credit against Singapore tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of China to a company which is a resident of Singapore and which owns not less than 10% of the shares of the company paying the dividend, the credit shall take into account Chinese tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Singapore tax, as computed before the credit is given, which is appropriate to such item of income.

2.     In China, double taxation shall be eliminated as follows:
   

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

(b) Where the income derived from Singapore is a dividend paid
by a company which is a resident of Singapore to a company which is a resident of China and which owns not less than 10% of the shares of the company paying the dividend, the credit shall take into account the tax paid to Singapore by the company paying the dividend in respect of its income.

3.     For the purposes of the credit referred to in paragraph 1 of this 
   

Article, the amount of Chinese tax imposed on items of income under Articles 10, 11 and 12 shall be deemed to have been paid at:

(a) (i) 10% of the gross amount of dividends paid by a joint venture with Chinese and foreign investment;

(ii) 20% of the gross amount of other dividends;

(b) 20% of the gross amount of interest;

(c) 20% of the gross amount of royalties.

4.     For  the  purposes  of  the  credit  referred  to  in  paragraph  1  
   

of this Article, Chinese tax payable shall be deemed to include the amount of Chinese tax which would have been paid if the Chinese tax had not been exempted, reduced or refunded in accordance with:

(a)* the provisions of Articles 7, 8, 9 and 10 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and
Foreign Enterprises and the provisions of Article 73, 75 and 81 of the Detailed Rules and Regulations for the Implementation of the Income Tax Law of the
People's Republic of China for Enterprises with Foreign Investment and
Foreign Enterprises.

(b) the provisions concerning reduction in or exemption
from income tax in paragraphs 1, 2 and 3 of Articles 1 and 2 and paragraphs 1 and 2 of Article 3 of the Interim Provisions of the State Council of China on Reduction in or Exemption from Enterprise Income Tax and the Industrial and Commercial Consolidated Tax for Special Economic Zones and Fourteen Coastal Cities;

(c) the provisions of any reduction in, exemption from or refund of tax designed to promote economic development in China which may be introduced under
the laws of China after the date of signature of this Agreement, and which may be agreed upon between the competent authorities of the Contracting States.

Article 25 - Non-discrimination

1.     The 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.

2.     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.

3.     Nothing in this Article shall be construed as obliging a Contracting 
   

State to grant to -

(a) residents of the other Contracting State any personal
allowances, reliefs and reductions for tax purposes which it grants to its own residents, or

(b) nationals of the other Contracting State those personal
allowances, reliefs and reductions for tax purposes which it grants to its own nationals who are not resident in that Contracting State or to such other persons as may be specified in the taxation laws of that Contracting State.

4.     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.

5.     Where  a  Contracting  State  grants  tax  incentives  to  its  
   

nationals designed to promote economic development in accordance with its national policy and
criteria, it shall not be construed as discrimination under this Article.

6.     In this Article, the term "taxation" means taxes which are the 
   

subject of this Agreement.

Article 26 - Mutual agreement procedure

1.     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 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.

2.     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.

3.     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 this Agreement.

4.     The competent authorities of the Contracting States may communicate 
   

with each other directly for the purposes 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

1.     The competent authorities of the Contracting States shall exchange 
   

such information as is necessary for carrying out the provisions of this Agreement, in particular for the prevention of evasion of taxes covered by this Agreement. Any information received by a Contracting State shall be treated as secret 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.

2.     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 the 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 could 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 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 on or after the first day of January 1986.

Article 30 - 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 for income derived on the first day of January in the year next following the year in which the notice of termination is given and thereafter.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto,
have signed this Agreement.

DONE in duplicate at Singapore this 18th day of April, 1986, in the English and Chinese languages, both texts being equally authoritative.

For the Government of the Republic of Singapore

For the Government of

the People’s Republic of China

HSU TSE-KWANG JIN XIN

PROTOCOL (1986)

At the signing of the Agreement between the Government of the Republic of Singapore and the Government of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as "The Agreement") both sides have agreed upon the following provisions which form an integral part of the Agreement.

In connection with Article 8, "Shipping and Air Transport":

(a) the exemption shall also include -

(i) in China, the industrial and commercial consolidated tax and its surtax;

(ii) in Singapore, any tax similar to the industrial and commercial consolidated tax and its surtax in China which may be imposed in Singapore after the signing of the Agreement;

(b) the exemption under the provisions of Article 8 and
subparagraph (a) of this paragraph in respect of income derived from shipping carried on by an enterprise which is a resident of a Contracting State shall be effective only from the date a Shipping Agreement between China and Singapore enters into force.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto,
have signed this Protocol.

DONE in duplicate at Singapore this 18th day of April, 1986, in the English and Chinese languages, both texts being equally authoritative.

For the Government of the Republic of Singapore

For the Government of

the People’s Republic of China

HSU TSE-KWANG JIN XIN

ANNEX D

ARTICLE 2 - TAXES COVERED

3.     The existing taxes to which the Agreement shall apply are:
   

(a) in 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");

ARTICLE 24 - ELIMINATION OF DOUBLE TAXATION

4 (a) the provisions of Articles 5 and 6 of the Income Tax Law of the People's Republic of China Concerning Joint Ventures with Chinese and Foreign Investment and the provisions of Article 3 of the Detailed Rules and Regulations
for the Implementation of the Income Tax Law of the People's Republic of
China Concerning Joint Ventures with Chinese and Foreign Investment;

(b) the provisions of Articles 4 and 5 of the Income Tax Law of the People's Republic of China Concerning Foreign Enterprises;