China - Syria Tax Treaty

AGREEMENT BETWEEN

THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND

THE GOVERNMENT OF THE SYRIAN ARAB REPUBLIC 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 Syrian Arab Republic,

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

    There shall be regarded as taxes on income all taxes imposed on

total income or on elements of income, including taxes on gains from the alienation of movable or immovable property and taxes on the total amounts of wages or
salaries paid by enterprises.

    The existing taxes to which this 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 Syria:

(i) the income tax on commercial, industrial, and non-commercial profits;

(ii) the income tax on salaries and wages;

(iii) the income tax on non-residents;

(iv) the income tax on revenue of movable and immovable capital; and

(v) surcharges imposed as percentages of the above mentioned taxes; including surcharges imposed by the local authorities.

(hereinafter referred to as “Syrian tax”)

   This Agreement shall apply also 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. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.

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, in which the Chinese laws relating to taxation apply, including its territorial sea, and any area beyond its territorial sea, within which the
People’s Republic of China has sovereign rights for the purpose of exploring
and exploiting the resources of the sea-bed and its sub-soil and superjacent water in accordance with international law and its domestic law;

b) the term “Syria” means, in accordance with international law, the territories of the Syrian Arab Republic including its internal waters, territorial sea, the subsoil thereof and the airspace above them to which Syria has
sovereign rights and other maritime areas to which Syria has the right to
exercise sovereign rights for the purposes of exploration,
exploitation and conservation of natural resources;

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

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

e) 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;

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 “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;

i) the term “competent authority” means:

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

(ii) in the case of Syria, the Minister of Finance or his
authorized representative.

   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 at that time under the law of that State concerning the taxes to which this Agreement applies.

Article 4 RESIDENT

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

Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of effective management, or any other criterion of a similar nature. But this term shall not include any person who is liable to tax in a Contracting State in respect only of income arising from sources in that State.

   Where by reason of the provisions of paragraph 1of this Article 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 (center of vital interests);

b) if the State in which he has his center of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the Contracting 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 of the Contracting 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 its residential status shall be determined by mutual agreement.

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.

   A building site, a construction, assembly or installation project or

supervisory activities in connection therewith constitutes a permanent
establishment, but only where such site, project or activities continue for a period of more than nine months.

   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.

   Notwithstanding  the  provisions  of  paragraphs  1  and  2,  where

a person in a Contracting State - other than an agent of an independent status to whom paragraph 6 applies - is acting on behalf of an enterprise of the other Contracting State and has, and habitually exercises in the first-mentioned State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to
have a permanent establishment in the first-mentioned Contracting State in respect of
any activities which that person undertakes for the enterprise, unless 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  shall  not  be  deemed  to  have  a  permanent

establishment in a Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of
their business. However, when the activities of such an agent are devoted wholly or almost
wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph.

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

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

Article 6

INCOME FROM IMMOVABLE PROPERTY

   Income derived by a resident of a Contracting State from immovable

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

   The term “immovable property” shall have the meaning which it has

under the law of the Contracting 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
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 derived  by  an enterprise  of a  Contracting  State  from

the operation of ships or aircraft in international traffic shall be taxable only in that Contracting 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

```
   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.

   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:

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

b) 10 percent 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 this limitation.

   The term “dividends” as used in this Article means income from any

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 percent 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 paid to, or on loans guaranteed or insured by, the
Government, a local authority, the Central Bank or any financial institution wholly
owned by the Government of the other Contracting State shall be exempt
from tax in the first-mentioned State.

   The term “interest” as used in this Article means income from

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

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

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

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

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

   Where, by reason of a special relationship between the payer and the

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

Article 12 ROYALTIES

   Royalties  arising  in  a  Contracting  State  and  paid  to  a

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

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

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

   The  term  “royalties”  as  used  in  this  Article  means  payments

of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial
or scientific experience.

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

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

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

payer is that Contracting State itself, 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.

   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 arising from the alienation of such a permanent establishment (alone or with
the whole enterprise) or of such fixed base, may be taxed in that other State.

   Gains  from  the  alienation  of  ships  or  aircraft  operated  by

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

    Gains  from  the  alienation  of  any  property  other  than  that

referred to in paragraphs 1, 2 and 3 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 Contracting 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 the 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 and 19 of this

Agreement, 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 Contracting State.

Article 16 DIRECTORS’ FEES

Directors’ fees and other similar payments derived by a resident of a Contracting

State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 17 ARTISTES AND SPORTSMEN

   Notwithstanding  the  provisions  of  Articles  14  and  15,  income

derived by a resident of a Contracting State as an entertainer, such as a
theater, motion picture, radio or television artist, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

   Where income in respect of personal activities exercised by an

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

   Notwithstanding  the  provisions  of  paragraphs  1  and  2,  income

derived by a resident of a Contracting State as an entertainer or a sportsman
from his personal activities as such exercised in the other Contracting State shall be taxable only in the first-mentioned State if those activities in the other State are under a plan of cultural exchange between the Governments of both 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 payments made under a public scheme which is part of the social security system of a Contracting State or a local authority thereof 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 local authority thereof to an individual in respect of services rendered to that State or a local authority 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 other State and the individual is a resident of that other 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 local authority thereof to an individual in respect of services rendered to that State or authority 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.

   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 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 one year from the date of his first arrival in the first-mentioned State.

   The  provisions  of  paragraph  1  shall  not  apply  to  the  income

from research carried out primarily for the private interest of a specific person or persons and not for public interest.

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 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 or business apprentice described in paragraph 1 shall, in addition, be entitled during such education or training to the same exemptions, reliefs or reductions in respect of taxes available to residents of the State which he is visiting.

Article 22 OTHER INCOME

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

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

   The  provisions  of paragraph  1  shall  not  apply  to  income,

other than income from immovable property as defined in paragraph 2 of Article 6, if the
recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in

that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 23

METHODS FOR ELIMINATION OF DOUBLE TAXATION

   In China, double taxation shall be eliminated as follows:

a) Where a resident of China derives income from Syria the amount of tax on that income payable in Syria 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 Syria is a dividend paid by a
company which is a resident of Syria 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 Syria by the company paying the dividend in respect of its income.

   In Syria, double taxation shall be eliminated as follows:

a) Where a resident of Syria derives income which, in accordance
with the provisions of this Agreement, may be taxed in China, then Syria shall allow as a deduction from the tax on the income of that resident,
an amount equal to the income tax paid in China; such deduction in any case shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in China.

b) Where in accordance with any provision of this Agreement, income derived by a resident of Syria from China is exempt from tax in China, Syria may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted 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, in particular with respect to residence, 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 favorably 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 the 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 this Agreement.

   The  competent  authority  shall  endeavor,  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 this 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 endeavor

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

   The  competent  authorities  of  the  Contracting  States  may

communicate with each other directly for the purpose of reaching an agreement in the
sense of the preceding paragraphs of this Article. When it seems advisable for reaching agreement, representatives of the competent authorities of the Contracting States
may have an oral exchange of opinions through a meeting.

Article 26 EXCHANGE OF INFORMATION

The competent authorities of the Contracting States shall
exchange such information as is foreseeably relevant for carrying out the
provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions 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.
Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities
(including courts and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above.
Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

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

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

c) to supply information which would disclose any trade, business,
industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (order public).

If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such
information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because
it has no domestic interest in such information.
In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
The measures of the exchange of information shall be defined in accordance with the domestic laws of the Contracting States with no restrictions on the obligations of the Contracting States in accordance with the preceding paragraphs from 1 to 5.

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

   The  Contracting  States  shall  notify  each  other,  through

diplomatic channels, that the internal legal procedures necessary for the entry into force of this Agreement have been complied with. This Agreement shall enter into force on the thirtieth day after the day when the latter of these notifications has been received.

   The provisions of this Agreement shall have effect:

a) in respect of taxes withheld at source on amounts paid or credited to the account on or after the first day of January immediately following
the calendar year in which this Agreement enters into force as per paragraph 1 of this Article.

b) in respect of other income taxes for any taxable year beginning on or after the first of January immediately following the calendar year in which this Agreement enters into force as per paragraph 1 of this Article.

Article 29 TERMINATION

   This Agreement shall remain in force indefinitely. After a period of

five years from the date on which this Agreement enters into force, 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.

   In such event, this Agreement shall cease to have effect:

a) in respect of taxes withheld at source on amounts paid or
credited to the account on or after the first day of January immediately following
the calendar year in which the notice of termination is given.

b) in respect of other income taxes for any taxable year beginning on or after the first of January immediately following the calendar year in which the notice of termination is given.

In witness whereof, the undersigned, duly authorized thereto, have
signed this Agreement.

Done at on the day of ,
, in duplicate in the Chinese, Arabic and English languages, all three texts being equally authentic. In case of divergence in interpretation, the English text shall prevail.

For the Government of

the People’s Republic of China

For the Government of the Syrian Arab Republic

China - Syria Tax Treaty

Disclaimer