Columbia – USA Transport Tax Agreement (1961)

Transportation Tax Agreement (1982)

This Treaty was signed on March 5, 1982 and entered into force on September 23, 1983.

AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA WITH RESPECT TO MUTUAL EXEMPTION FROM TAXATION OF TRANSPORTATION INCOME OF SHIPPING AND AIR TRANSPORT ENTERPRISES

The Government of the United States of America and the Government of the People’s Republic of China have agreed as follows, with respect to mutual exemption from taxation of transportation income of shipping and air transport enterprises:

Article I

Income and profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State.

Article II

1. The term income and profits from the operation of ships and aircraft includes:

(a) Income and profits from the operation of passenger, cargo, or mail transportation service by the owner or charterer of a ship or aircraft, and the sale of tickets related to such transportation;

(b) income and profits from the rental of ships or aircraft which are operated in international traffic by the lessee;

(c) income and profits from the rental of ships or aircraft if such rental is incidental to the operation of ships or aircraft in international traffic; and

(d) income and profits from the rental or use of containers (and related equipment for the transport of containers) used in international traffic.

The income and profits referred to in (a) through (d) above are, in each case, derived by an enterprise of a Contracting State.

2. The term international traffic means any transport by a ship or aircraft, except when such transport is solely between places in the other Contracting State.

Article III

Gains derived by an enterprise of a Contracting State from the alienation of ships, aircraft, or containers operated in international traffic shall be taxable only in that State.

Article IV

1. The term enterprise means:

(a) A state-owned or collectively-owned enterprise of, and an enterprise carried on by a resident of, the People’s Republic of China; and

(b) an enterprise carried on by a company incorporated in the United States of America and an enterprise carried on by a resident of the United States of America.

2. The term enterprise also includes a participation in a partnership or joint business by an enterprise referred to in paragraph 1.

Article V

Salaries and other remuneration derived by a resident of a Contracting State employed as a member of the crew of a ship or aircraft operated in international traffic shall be exempt from tax in the other Contracting State.

Article VI

The competent authorities of the Contracting State shall seek to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Agreement.

Article VII

Nothing in this Agreement prevents a Contracting State from taxing its residents and citizens.

Article VIII

Each of the Contracting States shall notify the other Contracting State in writing, through diplomatic channels, upon the completion of their respective legal procedures to bring this Agreement into force. The Agreement shall enter into force on the date of the later of such notifications and the provisions shall take effect on January 1, 1981.

Article IX

This Agreement shall remain in force indefinitely. However, either Contracting State may terminate the Agreement by giving six months prior notice to the other Contracting State, through diplomatic channels, in which case the Agreement shall cease to have effect as of January 1, following the expiration of the six months period.

Done at Beijing this fifth day of March, 1982, in duplicate, in the English and Chinese languages, the two language texts having equal authenticity.

FOR THE GOVERNMENT OF THE                FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA                 PEOPLE'S REPUBLIC OF CHINA