{
  "url": "https://openlegislation.uk/double-taxation-relief-taxes-on-income-china-order-1984/note",
  "json_url": "https://openlegislation.uk/double-taxation-relief-taxes-on-income-china-order-1984/note.json",
  "legislation": "uksi/1984/1826",
  "legislation_title": "The Double Taxation Relief (Taxes on Income) (China) Order 1984",
  "legislation_url": "https://openlegislation.uk/double-taxation-relief-taxes-on-income-china-order-1984",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "Under the Agreement with the People's Republic of China scheduled to this Order certain trading profits not arising through a permanent establishment (Article 7) and the earnings of temporary business visitors (Articles 15 and 16) are, subject to certain conditions, to be taxed only in the country of the taxpayer's residence. Where an enterprise which is a resident of one country carries on business through a permanent establishment in the other, the profits of the enterprise which are attributable to that permanent establishment may be taxed in that other country (Articles 5 and 7). Shipping and air transport profits are to be taxed only in the country in which the place of effective management of the enterprise is situated (Article 8).\nIncome derived by entertainers and athletes from their personal activities may be taxed in the country in which those activities are exercised. Where however the activities are performed under a cultural agreement or arrangement between the two countries and are supported by public or government funds of either country, the income is taxable only in the country of residence (Article 18). Government service salaries and pensions are normally to be taxed by the paying government only (Article 20) while other pensions are to be taxed only in the country of the taxpayer's residence (Article 19). The remuneration of visiting teachers (Article 21) and certain payments made to visiting students, business apprentices or trainees (Article 22) are, subject to certain conditions, to be exempt from tax in the country visited.\nIncome from immovable property (Article 6) and capital gains (Article 14) may be taxed in the country in which the property is situated.\nThe rate of tax imposed in the country of source on dividends (Article 10) and interest (Article 11) derived by a resident of the other country is not to exceed 10 per cent of the gross amount of the dividends or interest. The country of source will exempt from tax interest payable to the Government, a political subdivision or local authority, the Central Bank or any Government agency of the other country, and any interest in respect of debt-claims financed, guaranteed or insured by the Government of the other country.\nThe rate of tax in the source country on royalties flowing to the other country is generally not to exceed 10 per cent of the gross amount of the royalties except for payments received as consideration for the use of, or the right to use, any industrial, commercial or scientific equipment, in which case the rate of tax is not to exceed 10 per cent of 70 per cent of the gross amount of the royalties (Article 12).\nSimilarly, the rate of tax in the source country on technical fees flowing to the other country is not to exceed 10 per cent of 70 per cent of the gross amount of the technical fees (Article 13).\nWhere income continues to be taxable in both countries relief from double taxation is to be given by the country of the taxpayer's residence. The credit to be given in the United Kingdom for tax payable in China includes credit for tax spared under certain provisions of Chinese law (Article 13).\nThere are provisions to safeguard nationals and enterprises of one country against discriminatory taxation in the other (Article 24) and for consultation and the exchange of information between the competent authorities of the two countries (Articles 25 and 26).\nThe Agreement is to enter into force on the thirtieth day after exchange of notifications by the two countries that their respective legislative procedures have been completed and to take effect in the calendar year next following that in which it enters into force (Article 29).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1984/1826/note",
    "retrieved_at": "2026-10-29T17:29:31.487574+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}