China - South Africa Tax Treaty

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA 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

In terms of section 108(2) of the Income Tax Act, 1962 (Act No 58 of 1962), read in conjunction with section 231(4) of the Constitution of the Republic of South Africa, 1996 (Act No 108 of 1996), it is hereby notified that the Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income set out in the Schedule to this Notice has been entered into with the Government of the People’s Republic of China and has been
approved by Parliament in terms of section 231(2) of the Constitution.

It is further notified in terms of Article 28 of the Agreement,
that the date of entry into force is 7 January 2001.

In terms of the provisions of Article 28 of the said Agreement, the provisions of the Agreement shall have effect with regard to income derived during the taxable years beginning on or after 1 January 2002.

The Agreement was published in Government Gazette No 22041 dated 2 February 2001.

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA 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 South Africa 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

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

Contracting State or a political subdivision or a local authority thereof, irrespective of the manner in which they are levied.

  The existing taxes to which the Agreement shall apply are in

particular:

a) in China:

(i) the individual income tax;

(ii) the income tax for enterprises with foreign investment and foreign enterprises; (hereinafter referred to as "Chinese tax");

b) in South Africa:

(i) the normal tax;

(ii) the secondary tax on companies; (hereinafter referred to as "South African tax").

  The  Agreement  shall  also  apply  to  any  identical  or

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

Article 3

General Definitions

  For the purposes of this Agreement, unless the context otherwise

requires:

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

b) the term “South Africa” means the Republic of South Africa
and, when used in a geographical sense, includes the territorial sea thereof as well as
any area outside the territorial sea, including the continental shelf, which has been or may hereafter be designated, under the laws of South Africa and in accordance with international law, as an area within which South Africa may exercise sovereign rights or jurisdiction;

c) the terms "a Contracting State" and "the other Contracting
State" mean China or South Africa, as the context requires;

d) the term "tax" means Chinese tax or South African tax, as the context requires;

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

f) the term "company" means any body corporate 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) 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;

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

j) the term "competent authority" means, in the case of China, the State Administration of Taxation or its authorized representative, and in the case of
South Africa, the Commissioner for the South African Revenue Service or
his authorized representative.

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

Article 4

Resident

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

Contracting State” means:

a) in China, any person who, under the laws of China, is liable to tax therein by reason of his domicile, residence, place of head office or any other
criterion of a similar nature;

b) in South Africa, any individual who is ordinarily resident in South Africa and any other person which has its place of effective management in South Africa;

c) that State and any political subdivision or local authority thereof.

  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 only 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) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

  Where,  by  reason  of  the  provisions  of  paragraph  1,  a  person

other than an individual is a resident of both Contracting States, then it shall be deemed to be
a resident only of the State in which its place of effective management or its head office is situated.
However, if such person has a place of effective management in a Contracting State and has a head office in the other Contracting State, the competent authorities of the Contracting States shall by mutual agreement determine the State of which the person in question is a resident.

Article 5

Permanent Establishment

  For  the  purposes  of  this  Agreement,  the  term  "permanent

establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

  The term "permanent establishment" includes especially:

a) 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.

  The term "permanent establishment" likewise encompasses:

a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or
activities continue for a period of more than 12 months;

b) the furnishing of services, including consultancy services,
by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within a Contracting State for a period or periods aggregating more than 12 months within any twenty four month period.

  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 subparagraphs 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.

  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, and 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.

  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.

  The fact that a company which is a resident of a Contracting State

controls or is controlled by a company which is a resident of the other Contracting State, or
which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6

Income from Immovable Property

  Income  derived  by  a  resident  of  a  Contracting  State  from

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

  The  term  "immovable  property"  shall  have  the  meaning  which  it

has under the law of the Contracting State in which the property in question is situated. The term
shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships
and aircraft shall not be regarded as immovable property.

  The provisions of paragraph 1 shall apply to  income  derived  from

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

  The  provisions  of  paragraphs  1  and  3  shall  also  apply  to

the income from immovable property of an enterprise and to income from immovable property used
for the performance of independent personal services.

Article 7

Business Profits

  The profits of an enterprise of a Contracting State shall be taxable

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

  Subject to the provisions of paragraph 3, where an enterprise of a

Contracting State carries on business in the other Contracting State through a permanent
establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate
enterprise engaged in the same or similar activities under the same or similar conditions and dealing
wholly independently with the enterprise of which it is a permanent establishment.

  In determining the profits of a permanent establishment, there shall

be allowed as deductions expenses which are incurred for the purposes of the business of the
permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

  Insofar  as  it  has  been  customary  in  a  Contracting  State  to

determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall
preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary. The method of apportionment adopted shall, however, be such that the result shall
be in accordance with the principles contained in this Article.

  No profits shall be attributed to a permanent establishment by reason

of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

  For the purposes of the preceding paragraphs, the profits to be

attributed to the permanent establishment shall be determined by the same method year by year
unless there is good and sufficient reason to the contrary.

  Where profits include items of income which are dealt with separately

in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8

Shipping and Air Transport

  Profits  of  an  enterprise  of  a  Contracting  State  from  the

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

  The  provisions  of  paragraph  1  shall  also  apply  to  profits

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

Article 9

Associated Enterprises

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  Where
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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.

  Where  a  Contracting  State  includes  in  the  profits  of  an

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

Article 10

Dividends

  Dividends paid by a company which is a resident of a Contracting State

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

  However, such dividends may also be taxed in the Contracting State of

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

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

  The  term  "dividends"  as  used  in  this  Article  means  income

from shares or other rights, not being debt-claims, participating in profits, as well as income from
other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

  The provisions of paragraphs 1 and 2 shall not apply if the beneficial

owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

  Where a company which is a resident of a Contracting State derives

profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base situated in that other State, nor
subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11

Interest

  Interest  arising  in  a  Contracting  State  and  paid  to  a

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

  However,  such  interest  may  also  be  taxed  in  the  Contracting

State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent
of the gross amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.

  Notwithstanding  the  provisions  of  paragraph  2,  interest  arising

in a Contracting State and derived by the Government of the other Contracting State, a political subdivision, a local authority and the Central Bank thereof or any financial institution wholly
owned by the Government of that other State, or by any other resident of that other State with
respect to debt-claims indirectly financed by the Government of that other State, a political
subdivision, a local authority and the Central Bank thereof or any financial institution wholly owned by the Government of that other State, shall be exempt from tax in the first-mentioned State.

  The  term  "interest"  as  used  in  this  Article  means  income rfom

debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

  The provisions of paragraphs 1, 2 and 3 shall not apply if the

beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated
therein, or performs in that other State independent personal services from a fixed base situated
therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

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

payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment
or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall
be deemed to arise in the State in which the permanent establishment or fixed base is situated.

  Where,  by  reason  of  a  special  relationship  between  the  payer

and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt- claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

Article 12

Royalties

  Royalties arising in a Contracting State and paid to a resident of the

other Contracting State may be taxed in that other State.

  However, such royalties may also be taxed in the Contracting State in

which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed:

a) in the case of royalties referred to in subparagraph a) of paragraph 3 of this Article, 10 per cent of the gross amount of the royalties;

b) in the case of royalties referred to in subparagraph b) of paragraph 3 of this Article, 10 per cent of the adjusted amount of the royalties. For
the purpose of this subparagraph “the adjusted amount” means 70 per cent of the gross
amount of the royalties.

  The term "royalties" as used in this Article comprises:

a) 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, tapes or discs for radio or television broadcasting, or any
patent, know-how, trade mark, design or model, plan, secret formula or process; and

b) payments of any kind received as a consideration for the use of, or the right to use, any industrial, commercial or scientific equipment.

  The provisions of paragraphs 1  and 2 shall not apply if the

beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated
therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

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

payer is 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.

  Where,  by  reason  of  a  special  relationship  between  the  payer

and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount
which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

Article 13

Capital Gains

  Gains derived by a resident of a Contracting State from the alienation

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

  Gains  from  the  alienation  of  movable  property  forming  part  of

the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment
(alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

  Gains of an enterprise 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.

  Gains from the alienation of shares  of  the  capital  stock  of  a

company the property of which consists directly or indirectly principally of immovable property
situated in a Contracting State may be taxed in that Contracting State.

  Gains from the alienation of shares other than those mentioned in

paragraph 4 representing a participation of at least 25 per cent in a company which is a resident of a Contracting State may be taxed in that State.

  Gains  from  the  alienation  of  any  property  other  than  that

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

Article 14

Independent Personal Services

  Income  derived  by  a  resident  of  a  Contracting  State  in

respect of professional services or other activities of an independent character shall be taxable only in that State except in one of the following circumstances, when such income may also be taxed in the other Contracting State:

a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State;

b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve month period commencing or
ending in the fiscal year concerned; in that case, only so much of the income as is derived
from his activities performed in that other State may be taxed in that other State.

  The  term  "professional  services"  includes  especially  independent

scientific, literary, artistic, educational or teaching activities as well as the independent
activities of physicians, lawyers, engineers, architects, dentists and accountants.

Article 15

Dependent Personal Services

  Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries,

wages and other similar remuneration derived by a resident of a Contracting State in respect
of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

  Notwithstanding  the  provisions  of  paragraph  1,  remuneration

derived by a resident of a Contracting State in respect of an employment exercised in the other
Contracting State shall be taxable only in the first-mentioned State if:

a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending
in the fiscal year concerned, 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.

  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 may be taxed 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

Entertainers and Sportspersons

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

  Where income in respect of personal activities exercised by an

entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson 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 sportsperson are exercised.

  Notwithstanding  the  preceding  provisions  of  this  Article,

income derived by entertainers or sportspersons 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 mainly from public funds of the Government of
either Contracting State, a political subdivision or a local authority thereof, or take place
under a plan of cultural exchange between the Governments of the Contracting States.

Article 18

Pensions

  Subject   to   the   provisions   of   paragraph   2   of   Article

19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.

  Notwithstanding  the  provisions  of  paragraph  1,  pensions  paid

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

Article 19

Government Service

  a)         Salaries,  wages  and  other  similar  remuneration,  other

than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or political subdivision or local authority thereof, 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.

  a)         Any  pension  paid  by,  or  out  of  funds  created  by,

a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or political subdivision or local authority thereof 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 other State.

  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 the Government of a Contracting State or a political subdivision or a local authority thereof.

Article 20

Teachers and Researchers

  Remuneration  which  an  individual  who  is  or  was  immediately

before visiting a Contracting State, a resident of the other Contracting State and who is present
in the first-mentioned State for the primary purpose of teaching, giving lectures or conducting
research at a university, college, school or educational institution or scientific research institution
recognized by the Government of the first-mentioned State, derives for the purpose of such teaching, lectures or research shall not be taxed in the first-mentioned State, for a period of two years from
the date of his first arrival in the first-mentioned State.

  The provisions of paragraph 1 of this Article shall not apply to

income from research if such research is undertaken not in the public interest but primarily for
the private benefit of a specific person or persons.

Article 21

Students and Trainees

  Payments which a student, business apprentice or trainee who is or was

immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first- mentioned State solely for the purpose of his education or training
receives for the purpose of his maintenance, education or training shall not be taxed in that State,
provided that such payments arise from sources outside that State.

  In  respect  of  grants,  scholarships  and  remuneration  from

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

Article 22

Other Income

  Items of income of a resident of a Contracting State, wherever

arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

  The provisions of paragraph 1 shall not apply to income, other than

income rfom immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

  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 the
Agreement and arising in the other Contracting State may also be taxed in that other State.

Article 23

Methods for the Elimination of Double Taxation

Double taxation shall be eliminated as follows:

a) in China, where a resident of China derives income from
South Africa the amount of the South African tax paid on that income 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) in South Africa, Chinese tax paid by residents of South Africa in respect of income taxable in China, in accordance with the provisions of this Agreement, shall be
deducted from the taxes due according to South African fiscal law. Such deduction shall not, however, exceed an amount which bears to the total South African tax payable the same ratio as the
income concerned bears to the total income.

Article 24

Non-discrimination

  Nationals of a Contracting State shall not be subjected in the other

Contracting State to any taxation or any requirement connected therewith, which is other or
more burdensome than the taxation and connected requirements to which nationals of that
other State in the same circumstances are or may be subjected. This provision shall,
notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

  The taxation on a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State shall not be less favourably levied in that
other State than the taxation levied on enterprises of that other State carrying on the same activities.
This provision shall not be construed as obliging a Contracting State to grant to residents of
the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

  Except  where  the  provisions  of  paragraph  1  of  Article  9,

paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.

  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.

  The provisions of this Article shall, notwithstanding the provisions

of Article 2, apply to taxes of every kind and description.

Article 25

Mutual Agreement Procedure

  Where a person considers that the actions of one or both of the

Contracting States result or will result for him in taxation not in accordance with the
provisions of this Agreement, he may, irrespective of the remedies provided by the domestic 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 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the
action resulting in taxation not in accordance with the provisions of the Agreement.

  The competent authority shall endeavour, if the objection appears to

it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

  The  competent  authorities  of  the  Contracting  States  shall

endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.

  The  competent  authorities  of  the  Contracting  States  may

communicate with each other directly for the purpose of reaching an agreement in the sense of
paragraphs 2 and 3. When it seems advisable for reaching agreement, representatives of the
competent authorities of the Contracting States may meet together for an oral exchange of opinions.

Article 26

Exchange of Information

  The  competent  authorities  of  the  Contracting  States  shall

exchange such information as is necessary for carrying out the provisions of this Agreement or of
the domestic laws of the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not
restricted by Article 1. Any information received by a Contracting State shall be treated as
secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the
determination of appeals in relation to, the taxes covered by the Agreement. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

  In no case shall the provisions of paragraph 1 be construed so as to

impose on a Contracting State the obligation:

a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other Contracting State;

b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

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 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

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. The Agreement shall enter into force on the thirtieth day following the date of the later of these notifications
and shall have effect as respects income derived during the taxable years beginning on or after the first day of January next following that in which the Agreement enters into force.

Article 29

Termination

This Agreement shall continue in effect indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give written notice of termination to the other Contracting State through the diplomatic channel. In such event the Agreement
shall cease to have effect as respects 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.

IN WITNESS whereof the undersigned, duly authorized thereto, have signed this Agreement.

Done at Pretoria on the 25ᵗʰ day of April, 2000, in duplicate in the English and Chinese languages, both texts being equally authentic.

Mr T A Manuel
H E Mr Jin Renqing

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF

THE REPUBLIC OF SOUTH AFRICA THE PEOPLE'S REPUBLIC OF CHINA

Protocol

At the signing of the Agreement between the Government of the Republic of South Africa 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.

```
  With reference to Article 3:
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it is understood that in the case of South Africa, partnerships are excluded from the definition of “person” in subparagraph 1e).

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  With reference to Article 24:
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it is understood that nothing contained in this Article shall prevent South Africa from imposing on the profits attributable to a permanent establishment in South Africa of a company, which is a resident of China, a tax at a rate which does not exceed the rate of normal tax on companies which are residents of South Africa by more than 5 percentage points.

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

Done at Pretoria on the 25ᵗʰ day of April, 2000, in duplicate in the English and Chinese languages, both texts being equally authentic.

Mr T A Manuel
H E Mr Jin Renqing

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF

THE REPUBLIC OF SOUTH AFRICA THE PEOPLE'S REPUBLIC OF CHINA

China - South Africa Tax Treaty

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