Double Tax Treaties in China

Double Tax Treaties in China

Updated on Tuesday 19th April 2016

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China has signed a large number of double tax treaties with countries from all over the world. The purpose of the double tax treaties is to avoid the double taxation of natural persons and legal entities who are residents of a contracting state with activities in the other contracting state. The agreements signed between China and other states refer to the taxes on income which are applied to individuals and companies.
Foreign investors interested in the business environment available in China should know that the income taxes applicable on the Chinese market may vary from the ones in the country of origin. The agreements can provide tax reliefs or tax deductions/exemptions, which are applicable to citizens of the contracting states. 
Our Chinese lawyers can provide legal assistance to businessmen who want to invest here or who are interested to open a company in China; the lawyers are familiar with specific regulations related to the avoidance of double taxation

Double taxation treaties between China and other countries

At the moment, China has signed 101 agreements for the avoidance of double taxation.
The list of countries that have signed double tax treaties with China includes the following states: Albania, Algeria, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Brunei, Bulgaria, Botswana, Canada, Croatia, Cuba, Cyprus, the Czech Republic, Chile, Denmark, Egypt, Estonia, Ethiopia, Ecuador, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Kyrgyzstan, Korea, Kuwait, Laos, Latvia, Lithuania, Luxembourg, Macao, Macedonia, Malaysia, Malta, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, Nepal, the Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Papua New Guinea, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, the United Arab Emirates, the United Kingdom, the United States of America, Uzbekistan, Venezuela, Vietnam, Zambia, Zimbabwe. 
Our lawyers in China can offer you a presentation regarding each of these agreements.


The advantages offered by double tax treaties

Double tax treaties are useful for encouraging foreign investments in China and, in some cases, for investments dedicated to specific economic sectors. China is providing a tax friendly system for economic sectors such as IT or software and communication, as these sectors are very appealing for business investors with operations on the Chinese territory.
Double tax treaties are not only useful for companies that have their headquarters based both in China and in another contracting state that has signed a double tax treaty; they are also necessary for trading companies which, although not based in China, can charge services to a Chinese company. As a general rule, a double tax treaty typically offers advantages for the taxation of the following taxes: corporate income tax, individual income tax, withholding taxes and dividend taxes
 At the same time, a double taxation agreement stipulates when a company with operations in China can become a permanent establishment (PE). A PE refers to the place of business of a certain company through which it can run its operations. Such a place can refer to an office, a workshop, a factory, a mine or a construction site operated by the foreign company in China
Foreign investors interested in setting up a business in China should know that the provisions of the agreements may vary, in accordance with the stipulations on which the contracting states have agreed upon. 
Our law firm in China can offer to you more details on how you can apply the provisions stipulated by various double tax treaties in China, in accordance with the country of origin of the company; persons interested in finding out more details on a specific treaty for the avoidance of double taxation in China can contact our Chinese lawyers for legal assistance.



  • Andrew 2016-03-23

    I'd like to know how I can benefit of the taxation system applicable to British companies with operations in China. Thank you!

    Hello, you can send us your request via e-mail and one of our specialistst will answer you. 

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