Double Taxation Agreement Canada China

3. The competent authorities of the Contracting States shall endeavour to eliminate by mutual agreement any difficulty or doubt arising from the interpretation or application of this Agreement. They may also consult each other on the elimination of double taxation in cases not provided for in this Convention. 2. This Agreement shall also apply to identical or substantially similar fees levied after the date of signature of this Agreement, in addition to the fees referred to in paragraph 1 or instead of the fees referred to in paragraph 1. The competent authorities of the States Parties shall inform each other, within a reasonable time after such amendments, of any substantial changes to their respective tax legislation. 3. Enterprises of a State Party whose capital is whote or in part owned or controlled directly or indirectly by one or more residents of the other State Party shall not be subject to any taxation or associated obligation that is different or heavier than the taxation and related requirements of other similar enterprises of the first State Party; the capital of which is or may be held in whole or in part by the direct or indirect ownership or control of one or more residents of a third country. 1. If a person considers that the actions of one or both States Parties will result or result in taxation that does not comply with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States Parties, apply to the competent authority of the State Party in which he is established; or to the State Party of which he is a national, where his case falls within the scope of article 22, paragraph 1, a written request stating the reasons for the request for review of such taxation. 5. The competent authorities of the Contracting Parties may, in cases not provided for in this Convention, consult each other to eliminate double taxation and communicate directly with each other for the purposes of applying this Convention. On the date of signature of the Agreement concluded that day between the Government of Canada and the Government of the People`s Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed to the following additional provisions, which form an integral part of the Convention.

Canadian businesses must pay Canadian income taxes on their global income, including income from China. As you can see, there could be a double taxation problem, because Chinese income is taxed twice – first by China, then by Canada. To reduce double taxation, Canadian companies can claim a foreign tax credit for some or all of the Chinese tax paid. 5. For the purposes of Article XXII, paragraph 3 (consultation) of the General Convention on Trade in Services, which is part of the Convention of 15 The Parties agree that, notwithstanding this paragraph, any dispute between them as to whether a measure falls within the scope of this Agreement may be referred to the Council for Trade in Services, as provided for in this paragraph, unless both Parties agree. . . .