Document ID: chunk:federal_register_of_legislation:C2004A04052:schedule:29:p19
Version: federal_register_of_legislation:C2004A04052
Segment Type: schedule
Provision Reference: sch 29 (pt 19/64)
Character Range: 48282–50916

Part II and Articles I, II and III of Part III of the interim provisions of the State Council of the People's Republic of China on reduction in or exemption from enterprise income tax and the consolidated industrial and commercial tax for special economic zones and fourteen coastal cities;

     (d) Articles 12 and 19 of the State Council Regulations for the Encouragement of Investment in the Development of Hainan Island;

     (e) Articles 8, 9 and 10 of the State Council Regulations concerning the Encouragement of Foreign Investment; and

     (f) Articles 1, 2 and 3 of the interim provisions of the Ministry of Finance of the People's Republic of China regarding (reduction in or exemption from) enterprise income tax and industrial and commercial consolidated tax for encouraging foreign investment in the coastal open economic areas;

insofar as they were in force on, and have not been modified since, the date of signature of this Agreement, or have been modified only in minor respects so as not to affect their general character and any other provision which may subsequently be made granting an exemption from or reduction of tax which the Treasurer of Australia and the Commissioner of the State Taxation Administration of China agree from time to time in letters exchanged for this purpose to be of a substantially similar character, if that provision has not been modified thereafter or has been modified only in minor respects so as not to affect its general character.

6. In the application of paragraph (5) in relation to dividend, interest and royalty income to which Articles 10, 11 and 12 respectively apply, the amount of Chinese tax shall be deemed to be the amount equal to:

     (a) in the case of dividends, 15 per cent of the gross amount of those dividends;

     (b) in the case of interest, 10 per cent of the gross amount of that interest; and

     (c) in the case of royalties, 15 per cent of the gross amount of those royalties, but only where the rate of tax levied under the

SCHEDULE 1—continued

     law of China, other than a provision specified in paragraph (5), is not less than 15 per cent.

7. Paragraphs (4), (5) and (6) shall apply only in relation to income derived in any of the first ten years of income in relation to which this Agreement has effect by virtue of sub-paragraph (a) (ii) of Article 27 and in any later year of income that may be agreed by the Treasurer of Australia and the Commissioner of the State Taxation Administration of China in letters exchanged for this purpose.

8. For the purposes of this Article, profits, income or gains derived by a resident of a