CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PRINTING AND DISTRIBUTING THE SECOND PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF CHINA AND THE GOVERNMENT OF NEW ZEALAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF TAX EVASION FOR INCOMES

Circular of the State Administration of Taxation on Printing and Distributing the Second Protocol to the Agreement between the Government
of China and the Government of New Zealand for the Avoidance of Double Taxation and Prevention of Tax Evasion for Incomes

Guo Shui Han [1997] No. 551
October 15, 1997

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and cities specifically designated in the state plan,

The Second Protocol to the Agreement between the Government of China and the Government of New Zealand for the Avoidance of Double
Taxation and Prevention of Tax Evasion for Incomes has been formally concluded on October 7, 1997 in Wellington, capital of New Zealand,
which will be not in forth until both contracting states have completed their respective legal procedures. The text of this Second
Protocol is hereby printed and distributed to you. Please make full preparations for its implementation.

The Second Protocol to the Agreement between the Government of China and the Government of New Zealand for the Avoidance of Double
Taxation and Prevention of Tax Evasion for Incomes

As for the Agreement between the Government of China and the Government of New Zealand for the Avoidance of Double Taxation and Prevention
of Tax Evasion for Incomes which has been concluded at Wellington on September 16, 1986 (hereinafter referred to as “the Agreement”),
both the Government of the People’s Republic of China and the Government of New Zealand agree that the following provisions shall
be made as one part of the Agreement.

Article 1 .

Paragraph 1 of Article 2 of the Agreement shall be deleted and substituted by the following,

1.

The current taxes to which the Agreement shall apply are:

(a)

within the People’s Republic of China:

(i)the individual income tax;

(ii) the income tax for foreign-invested enterprises and foreign enterprises;

(hereinafter referred to as “the Chinese revenue ” )

(b)

within New Zealand:

the income tax;

(hereinafter referred to as “the New Zealand revenue” ).”

Article 2 .

Item (j) of paragraph 1 of Article 3 of the Agreement shall be deleted and substituted by the following,

“(j) the term ‘ompetent authority’ refers to, as for China, the State Administration of Taxation or representatives authorized by
it, and as for New Zealand, the Commissioner of Inland Revenue or the representative of the Commissioner authorized by him (her).
”

Article 3 .

1.

Items (a) and (b) of paragraph 3 of Article 23 of the Agreement shall be deleted and substituted by the following,

” (a) the provisions of Articles 7, 8, 9, 10 and the provisions of paragraphs 1, 3 and 4 of Article 19 of the Income Tax Law of the
People’s Republic of China for Foreign-invested Enterprises and Foreign Enterprises and the provisions of Articles 73, 75, and 81
of the Detailed Rules and Regulations for the Implementation of the Income Tax Law of the People’s Republic of China for Foreign-invested
Enterprises and Foreign Enterprises. ”

2.

Items (c) and (d) of paragraph 3 of Article 23 of the Agreement shall be respectively modified as (b) and (c).

Article 4 .

1.

In spite of Article 23 of the Agreement, where the income that a New Zealand resident derives from the People’s Republic of China
and is referred to in paragraph 3 of Article 23 of the Agreement is under one of the following circumstances, it shall be enpost_titled
to enjoy the preferential provisions of that paragraph ,

(a)

where an arrangement have been entered into by any person in order to take advantage of paragraph 3 of Article 23 for the benefit
of that person or any other person, which is contrary to the spirit and intent of that paragraph; or

(b)

where any benefit occurs or may occur to any person who is neither a resident of New Zealand nor a resident of the People’s Republic
of China.

2.

The competent authority of New Zealand shall negotiate with the competent authority of the People’s Republic of China before adopting
any of the above measures in every case.

Article 5 .

1.

Articles 1 and 3 of this Second Protocol shall be applicable to incomes derived on or after July1, 1997.

2.

Article 2 of this Second Protocol shall be effective from the date when the Second Protocol goes into effect.

3.

Article 4 of this Second Protocol shall be applicable incomes derived on or after the first day of the month following the date on
which this Second Protocol goes into effect.

Article 6 .

1.

Each of the Contracting States shall notify the other one that the procedures as required by its laws for the effectiveness of this
Second Protocol have been finished.

2.

This Second Protocol shall go into effect as of the thirtieth day after the later notification referred to in paragraph 1 of this
Article is issued.

This Protocol was concluded at Wellington in duplicate on October 7, 1997 both in English and Chinese. Both the text in English and
in Chinese shall be equally authentic.

Representative of the Government of the People’s Republic of China ChengFaguang Representative of the Government of New Zealand Don
McKinnon