{"id":7893,"date":"2024-10-18T18:20:15","date_gmt":"2024-10-18T18:20:15","guid":{"rendered":"https:\/\/taxupdate.com.br\/?p=7893"},"modified":"2024-10-18T18:29:10","modified_gmt":"2024-10-18T18:29:10","slug":"arg-chinadoubletax","status":"publish","type":"post","link":"https:\/\/taxupdate.com.br\/en\/arg-chinadoubletax\/","title":{"rendered":"ARGENTINA – CHINA DOUBLE TAX TREATY AND PROTOCOL PROMULGATION"},"content":{"rendered":"\n

Today, the Argentine Official Gazette published Law No. 27,780 which approves the Argentina \u2013 China Double Tax Treaty (\u201cDTT\u201d) signed on December 2nd<\/sup>, 2018.<\/p>\n\n\n\n

We highlight the following aspects of this Treaty:<\/p>\n\n\n\n

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  1. Scope: It applies to Individual and Corporate Income Taxes of both Contracting States and Argentine Wealth Tax\/Personal Asset Tax.<\/li>\n\n\n\n
  2. Residence: Should an entity be considered resident in both Contracting States, the competent authorities of both States shall determine its residence for the DTT through mutual agreement. In case no agreement is reached, such an entity shall not be entitled to any relief or exemption from tax provided by the DTT except to the extent and in such manner as may be agreed upon by the said competent authorities.<\/li>\n\n\n\n
  3. Services Permanent Establishment (\u201cPE\u201d): Under the DTT, a PE will be deemed to exist if a company \u00a0provides services in a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 183 days within any 12-month period.<\/li>\n\n\n\n
  4. Withholding Tax Rates:<\/li>\n<\/ol>\n\n\n\n

    1. Dividends: 10% – 15% rates apply (10% applies in case the beneficial owner is a company that has directly held at least 25% of the paying company’s capital throughout a 365-day period that includes the day of the payment)<\/p>\n\n\n\n

    2. Interest: a 12% rate applies, except for: (i) interest on commercial debt-claims, including debt-claims represented by commercial paper resulting from deferred payments for machinery or equipment supplied by an enterprise, except where such interest is paid between associated enterprises; (ii) interest on loans of any nature, not represented by bearer instruments, granted on preferential terms for a period of at least three years by a banking enterprise; (iii) interest paid to the other Contracting State, a political subdivision or a local authority thereof, or to the Central Bank of that Contracting State or to an institution owned or controlled by that State, or by a political subdivision or a local authority thereof.<\/p>\n\n\n\n

    3. Royalties: 3% – 5% – 7% – 10% rates apply<\/p>\n\n\n\n

    4. Capital Gains: 10% – 15% rates apply<\/p>\n\n\n\n