China - Trinidad and Tobago Tax Treaty

AGREEMENT

BETWEEN

THE GOVERNMENT OFTHE PEOPLE'S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO 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 TRINIDAD AND TOBAGO;

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income so as to encourage international trade and investment;

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

    The taxes which are the subject of this Agreement are:

(a) in the case of Trinidad and Tobago:

(i) the income tax;

(ii) the corporation tax;

(III) the petroleum profits tax;

(iv) the supplemental petroleum ,tax; and

(v) the unemployment levy;

(hereinafter referred to as "Trinidad and Tobago tax");

(b) in the case of China:

(i) the individual income tax; and

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

(hereinafter referred to as "Chinese tax").

  This Agreement shall apply also to any identical or substantially

similar taxes which are imposed by a Contracting State after the date of signature of this Agreement in addition to, or in place of, the taxes referred to above. The competent authorities of the Contracting States shall notify each other of any significant 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 "Trinidad and Tobago" means the Archipelagic State of Trinidad and Tobago, comprising the several islands of the Republic of Trinidad and Tobago, its archipelagic waters, territorial sea and the airspace thereof, together with the adjacent submarine areas of the Exclusive Economic Zone and the continental shelf beyond the territorial sea over which Trinidad and Tobago exercises sovereignty or sovereign rights in accordance with the laws of Trinidad

and Tobago and with international law;

(b) 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;

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

(d) the term "tax" means the Trinidad and Tobago tax or the Chinese tax as the context requires;

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

(f) the term "company" means any body corporate 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 Trinidad and Tobago, the Minister to whom the responsibility

for Finance is assigned or his authorized representative;

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

(j) 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. in the application of this Agreement by a Contracting State, any term not defined herein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Agreement.

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 effective management, head office or any other criterion of a similar nature.

  Where by  reason  of the provisions  of paragraph  1  an individual

is a resident of both Contracting States, then his status shall be
determined in accordance with the following rules:

(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

("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, he shall be deemed to be a resident 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 of this Article a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which
its place of effective management of its business is situated. However, where such a person has the place of effective management of its business in one of the Contracting States, and the place of head office of its business in the other Contracting State, then the competent authorities of the Contracting States shall determine by mutual agreement the Contracting State of which the company shall be deemed to be a resident for the purposes of this Agreement.

ARTICLE 5

Permanent Establishment1.

  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;

(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, dredging 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 of a Contracting State through employees or other engaged 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 6 months within any 12 month period;

(c) a drilling rig or ship used for the exploration for or exploitation of natural resources, or in activities connected with that exploration or exploitation but only if so used continuously or those activities continue for a period of more than 3 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 pre]oaratory or auxiliary character.

  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 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 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 the 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  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

derived from 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 Contracting 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 recipient is the beneficial owner of the dividends the tax so charged shall not exceed:

(a) 5 percent of the gross amount of the dividends if the beneficial owner is a company which holds directly or indirectly 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.

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 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 Article14, 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.

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

permanent establishment in the other Contracting State, derives profits or income from that permanent establishment, any remittances or deemed remittances of such profits or income by the permanent establishment to the company which is a resident of the first-mentioned Contracting State
may notwithstanding any other provision of this Agreement, be taxed in accordance with the law of the other Contracting State, but the rate of tax imposed on such remittances or deemed remittances shall not exceed 5 percent.

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 recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 percent of the gross amount of the interest.

   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 State. The term "Government" :

(a) in the case of Trinidad and Tobago, means the Government of Trinidad and Tobago and shall include:

(i) the Central Bank of Trinidad and Tobago;

(ii) the Agricultural Development Bank;

(iii) the Export Insurance Company;

(iv) the National Housing Authority;

(v) the National Insurance Board;

(vi) the Home Mortgage Bank;

(vii) the Deposit Insurance Corporation;

(viii) the Small Business Development Company;

(ix) the Development Finance Limited;

(x) the Trinidad and Tobago Mortgage Finance Company;

(xi) any other similar institution wholly owned by the Government of Trinidad and Tobago as may be agreed upon 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 Development Bank;

(iii) the Export and Import Bank of China;

(iv) the Agriculture Development Bank of China; or

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

    The  term  "interest"  as  used  i6  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  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 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 cases the provisions of Article 7 or Article 14, as the case may be, shall apply.

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

is the Government of that State, a political subdivision, a local authority thereof 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 recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 percent of the gross amount of the royalties.

  The term "royalties" as used in this Article means payments of any kind

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

industrial, commercial or scientific equipment, or for information
concerning industrial, commercial or scientific experience.

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

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

  Royalties  shall  be  deemed  to  arise  in  a  Contracting  State

when the payer is the Government of that State, a political subdivision, a local authority thereof or 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 Contracting 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 a fixed base, may be taxed in that other Contracting State.

  Gains  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 the Contracting State in which the place of head office of the enterprise is situated.4. Gains from the alienation of
any property other than that referred to in paragraphs 1 to 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 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; or

(b) if he is present in the other Contracting State for a period or periods exceeding in the aggregate 183 days in any period of 12months; in that case, only so much of the income as is derived from his
activities performed in that other Contracting State may be taxed in
that other Contracting State; or

(c) if the remuneration derived in the taxable year by the resident of that Contracting State from the performance of such services in the other Contracting State exceeds 15000 US dollars or the equivalent in
Chinese RMB or Trinidad and Tobago dollars, as the case may be.

     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 period of 12 months; 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 Athletes

  Notwithstanding the provisions of Articles 14 and 15, income derived by

a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an
athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

     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.

   Notwithstanding  paragraphs  1  and  2,  income  derived  from

activities performed in a Contracting State by entertainers or athletes who are residents of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State if the visit to that State is undertaken 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 in consideration of past employment to a resident of a Contracting State and any annuity paid to such a resident 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 political subdivision or a local
authority thereof shall be taxable only in that State.

   The  term  "annuity"  referred  to  in  paragraph  1  means  a

stated sum payable periodically at stated times during life or during a
specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

ARTICLE 19

Government Service

  (a)    Remuneration, other than a pension, paid by the Government of a

Contracting State, a political subdivision o] a local authority thereof to an individual in respect of services rendered to the Government of that State, a political subdivision or a local authority thereof shall be taxable only in that State.

(b) However, such 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, the

Government of a Contracting State, a political subdivision or a local authority thereof to an individual in respect of services rendered to the Government of that State, a political subdivision or a 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 remuneration and

pensions in respect of services rendered in connection with a business carried on by the Government of a Contracting State, a political subdivision or a local authority thereof.

ARTICLE 20

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 21

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 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 Contracting 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 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 State.

ARTICLE 23

Elimination of Double Taxation

  In the case of Trinidad and Tobago, double taxation shall be avoided as

follows:

(a) Subject to the provisions of the laws of Trinidad and Tobago regarding the allowance of a credit against Trinidad and Tobago tax of tax payable in a territory outside Trinidad and Tobago (which shall not affect the general principle hereof):

(i) Chinese tax payable under the laws of China and in accordance with this Agreement, whether directly or by deduction on profits or income from sources within China (excluding, in the case of a dividend, tax payable in respect of the profits out

of which the dividend is paid) shall be allowed as a credit against any Trinidad and Tobago tax computed by reference to the same profits or income by reference to which the Chinese tax is computed;

(ii) in the case of a dividend paid by a company which is a resident of China to a company which is a resident of Trinidad and Tobago and which controls directly or indirectly at least 25 percent of the voting power in the company paying the dividends the credit shall take into account, in addition to any Chinese tax creditable under (a) (i), the Chinese tax payable by the company paying the dividends in respect of the profits out of which such dividend is paid.

(b) The credit, however, shall in no case exceed that part of the tax, as computed before the credit is given, which is appropriate to the income which may be taxed in China.

  In the case of China, double taxation shall be avoided as follows:

(a) Where a resident of China derives income from Trinidad and Tobago the amount of tax on that income payable in Trinidad and Tobago in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of 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 Trinidad and Tobago is a dividend paid by a company which is a resident of Trinidad and Tobago 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 Trinidad and Tobago by the company paying the dividend in respect of its income.

   For the purposes of allowance as a credit, the tax payable in China or

Trinidad

and Tobago, as the context requires, shall be deemed to include the tax which is otherwise payable in a Contracting State but has been reduced or waived by that Contracting State under its legal provision for tax incentives.

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.

  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 this Agreement.

  The competent authority shall endeavour if the objection appears to it

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

  The competent authorities of the Contracting States shall endeavour to

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

       The   competent   authorities   of   the   Contracting

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

ARTICLE 26

Exchange of Information

   The  competent  authorities  of  the  Contracting  States  shall

exchange such information as is necessary for carrying out the provisions of
this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement insofar as the taxation thereunder is not contrary to

this Agreement, in particular for the prevention of evasion of such taxes. 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) 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 this 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

Diplomatic Agents and Consular Officers

Nothing in this Agreement shall affect the fiscal privileges
of diplomatic agents or consular officers under the general rules of international law or' under the provisions of special agreements.

ARTICLE 28

Entry into Force

Each Contracting State shall notify the other, through diplomatic notes, of the completion of the procedures required by its law for the bringing into force of this Agreement. This Agreement shall enter into force on the thirtieth day after the date of the later of these notifications and shall thereupon have effect:

(a) in Trinidad and Tobago:

(i) in respect of taxes withheld at source on amounts paid, credited or remitted to non-residents on or after the first day of

the second month following the date on which this Agreement enters into force;

(ii) in respect of other taxes, for the years of income beginning on or after the first day of January in the year next following that in which this Agreement enters into force.

(b) in China:

(i) in respect of taxes withheld at source on amounts paid, credited or remitted to non-residents, on or after the first day of the second month following the date on which this Agreement enters into force;

(ii) in respect of other taxes, for taxable years beginning on or after the first day of January in the year next following that in which this Agreement enters into force.

ARTICLE 29

Termination

   This  Agreement  shall  remain  in  force  indefinitely,  but  either

of the Contracting States, may, on or before June 30, 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 diplomatic channels, written notice of termination.

  In such event this Agreement shall cease to have effect:

(a) in Trinidad and Tobago:

(i) in respect of taxes withheld at source on amounts paid, credited or remitted to non-residents on or after the first day of January in the year next following that in which the notice is given; and

(ii) in respect of other taxes for the year of income beginning the first day

of January in the year next following that in which the notice is given.

(b) in China:

(ii) in respect of other taxes, for taxable years beginning the first day of January in the year next following that in which the notice is given.

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

DONE at Port of Spain on the 18ᵗʰ day of September, 2003, in duplicate in the English and Chinese languages, both texts being equally authentic.

For the Government of the For the Government of the

People’s Republic of China Republic of Trinidad and Tobago

China - Trinidad and Tobago Tax Treaty

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