Beijing local taxation bureau forwarding of ¡°Notice of the State Administration of Taxation on Printing and Distributing the Provisional Measures for Applications by Chinese Residents (Nationals) for Launching Tax Negotiation Procedures¡±

Jing Di Shui Fa [2005] No.451
The local taxation bureau of all provinces, autonomous regions and all offices directly under the leadership:
¡¡¡¡Hereby we forward the ¡°Notice of the State Administration of Taxation on Printing and Distributing the Provisional Measures for Applications by Chinese Residents (Nationals) for Launching Tax Negotiation Procedures¡±(Guo Shui Fa¡²2005¡³No.115, after referred as ¡°the Provisional Measures¡±) to you and make the following requests to be implemented.
¡¡¡¡1 The launching tax negotiation procedures is an important part for the implementation of China's tax agreements signed with other contracting states, is also crucial to avoid double taxation as well as a major measure to safeguard the lawful rights and interests of taxpayers and national taxation sovereignty, therefore, all the units should be fully aware of the importance of this work and learn the Negotiation Procedures carefully with the relevant provisions of agreements avoiding double taxation organizational, accurately grasp the requirements and do a good job related.
¡¡¡¡2 All bureaus should carry out positive propaganda and promotion through a variety of channels about the agreements on avoidance of double taxation and the launching of negotiation procedures, promptly inform taxpayers of the relevant provisions of the mutual consultation to ensure open channels for the legitimate rights and interests of taxpayers.
¡¡¡¡3 Beijing local taxation bureau is a designed agent where the taxpayers apply for the launching of negotiation procedures in charge of municipal legal system (International Tax Management Service). It is responsible to provide complete information and the facts of the case to the applicants, as well as clear controversial al statements with the other parties, define the scope of the Negotiation Procedures, accept the application as soon as possible and make reports to the State Administration of Taxation within 15 working days after the acceptance.
¡¡¡¡4 Applicants should submit two copies "Application for Launching Negotiation Procedures ", offer business tax registration certificate copy or ID Card, agents authorized need to provide the letter of authorization of applicants and ID Card. The "Application for Launching Negotiation Procedures " is available in designated agents or to visit the website of Beijing local taxation bureau (www.tax861.gov.cn).
¡¡¡¡Tel of Beijing local taxation bureau for Applications for Launching Tax Negotiation Procedure: 12366; Acceptance Tel: 88371799.
  September 30, 2005  

Notice of the State Administration of Taxation on Printing and Distributing the Provisional Measures for Applications by Chinese Residents (Nationals) for Launching Tax Negotiation Procedures

 Guo Shui Fa [2005] No. 115
The bureaus of state taxation and those of local taxation of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning: ¡¡¡¡In order to maintain the lawful taxation rights and interests of the Chinese residents (nationals) in the other contracting state to any tax agreement, and help Chinese residents (nationals) solve taxation problems encountered in the other contracting state to any tax agreement, the State Administration of Taxation have formulated the Provisional Measures for Applications by Chinese Residents (Nationals) for Launching Tax Negotiation Procedures, which are hereby printed and distributed to you. Please implement them accordingly and promulgate them via television, newspaper, network and television station, etc.
¡¡¡¡The acceptance of applications of Chinese residents (nationals) for launching tax negotiation procedures is an important measure for maintaining the lawful rights and interests of the State and the taxpayers, enhancing the tax payment service level, strengthening and improving the international tax collection and administration work, therefore, all regions shall fully realize the importance of this work and practically do a good job in the related work.
¡¡¡¡Annex: Application Form for Launching Tax Negotiation Procedures
July 7, 2005

Provisional Measures for Applications by Chinese Residents (Nationals) for Launching Tax Negotiation Procedures
Article 1 In order to maintain the lawful taxation rights and interests of the Chinese residents (nationals) in the other contracting state to any tax agreement, and help Chinese residents (nationals) solve taxation problems encountered in the other contracting state to any tax agreement, these Measures are formulated pursuant to the agreements between (the government of) our country and (the governments of) other countries on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on incomes (and properties) and the arrangements between the mainland and the special administrative regions on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on incomes (hereinafter referred to as tax agreements), the Law of the People¡¯s Republic of China on the Administration of Tax Collection and the Detailed Rules for the Implementation thereof and by taking into consideration the actual situation of tax collection and administration work of our country. Article 2 The ¡°application for launching tax negotiation procedures¡± refers to such an act by which any Chinese resident (national) finds that any measure taken by the other contracting state has resulted in or will result in the tax collection inconsistent with the tax agreement and files an application to the State Administration of Taxation (hereinafter referred to as the SAT) requiring the SAT and the competent authority of the other contracting state to solve the relevant problem through tax negotiations.
Article 3 The ¡°Chinese residents¡± as mentioned in Article 2 of these Measures refers to those enterprises or individuals that bear the Chinese tax payment obligations for the incomes both from home and abroad pursuant to the Provisional Regulation of the People's Republic of China on Enterprise Income Tax, the Law of the People¡¯s Republic of China on the Income Tax of Enterprises with Foreign Investment and Foreign Enterprises and the Individual Income Tax Law of the People's Republic of China.
Article 4 The ¡°Chinese nationals¡± as mentioned in Article 2 of these Measures refers to the Chinese individuals, legal persons and other non-legal-person groups.
Article 5 The ¡°other contracting party¡± as mentioned in Article 2 of these Measures refers to any country or region that has concluded a tax agreement with China and the said tax agreement has taken effect or has been carried out (the tax agreements that have taken effect or have been carried out in our country may be found in the website of the SAT, www.chinatax.gov.cn).
Article 6 The tax categories to which tax negotiation procedures apply shall be specified by the relevant tax agreement, and as a general rule, shall be the taxes on income or property. The tax categories to which tax negotiation procedures apply are not confined to the tax categories as prescribed by the articles and paragraphs on the scope of tax categories, and a Chinese resident (national) may also launch tax negotiation procedures for a dispute caused by any other tax category.
Article 7 A Chinese resident may launch tax negotiation procedures if he is under any of the following circumstances:
(1) he is required to apply for the mutual negotiated pricing arrangement;
(2) the adjustment of tax on profits from businesses between associated enterprises may result in or has resulted in double taxation by different taxation authorities;
(3) he holds objection to the tax collection or the applicable tax rate in terms of dividends, interests or royalties;
(4) he has violated the provisions on non-discrimination as provided for in tax agreements, and which may constitute or has already constituted a discriminatory treatment;
(5) he has objection to the recognition of the permanent establishment or identification of citizen, the profit ascription of the permanent establishment or the deduction of fees;
(6) any dispute on the understanding or implementation of the tax agreement, and which can not be solved by themselves; or
(7) the double taxation that may happen or has happened as a result of different tax jurisdictions.
Article 8 In case a Chinese national maintains that the other contracting state violates the provisions on non-discrimination as provided for in any tax agreement and which may constitute or has constituted a discriminatory treatment, he may apply for launching tax negotiation procedures.
Article 9 An application for launching tax negotiation procedures may be filed to the competent bureau of state taxation or competent bureau of local taxation of a province, autonomous region, municipality directly under the Central Government or city under separate state planning in written form within the time limit as prescribed by a pertinent tax agreement (as a general rule, within three years from the day when the tax collection notice inconsistent with the tax agreement is given for the first time).
Article 10 An application shall includes:
(1) basic information about the applicant, including the name of the relevant Chinese resident (national) in the other contracting state, tax payment identification number or registration number, detailed address, postal code, contact person, contact phone number, name and address of the competent taxation authority (in both Chinese and English); name of the relevant Chinese resident (national) in China, detailed address, postal code, contact person, contact phone number, and the name of the competent taxation authority;
(2) facts of the case, generally including the country (region), person and its relations, economic activities, tax year, type of gains (incomes), tax category, amount of tax and the relevant articles and paragraphs in the tax agreement (and other laws) involved in the case;
(3) the focus of the dispute between the applicant and the competent authority of the other contracting state:
(4) opinions, basis and foundations of the competent authority of the other contracting state concerning the dispute, and the taxation handling decision or notice of the competent authority of the other contracting state may be annexed where it so requires;
(5) opinions, basis and foundations of the applicant concerning the dispute, and the relevant conditions shall be explained, and the relevant decision, photocopy of judgment and its Chinese translation shall be annexed if the case involved has been or is going to be subject to any legal procedure or any other legal remedy;
(6) relevant, similar or identical cases in the other contracting state that are known by the applicant;
(7) instructions: whether the application or the annexed materials shall be kept secret and the classification of these confidential materials ( secret, confidential and top secret);
(8) final statements: I hereby solemnly declare that the information provided by this application and the annexed materials is authentic, complete and accurate; and
(9) other materials deemed necessary to be provided by the taxation authority.
Article 11 The competent taxation organ shall transmit the application after receiving an application to the State Administration of Taxation within 15 working days.
Article 12 The SAT shall, after making an examination, carry out tax negotiations with the competent authority of the other contracting state concerned if the requirements for mutual agreement are met, or notify the applicant via the organ that accepts the application in written form if the requirements for mutual agreement absolutely can not be met, or contact the applicant via the organ that accepts the application if the requirements for mutual agreement can not be completely met but tax negotiations can be conducted after further supplementing materials or explaining the situation.
If it is urgent, the SAT may directly contact the applicant.
Article 13 For the result of tax negotiation, the SAT shall forward it to the applicant via the organ that accepts the application in written form.
Article 14 The power to interpret these Measures shall remain with the State Administration of Taxation.
Article 15 These Measures shall come into force as from July 1, 2005.