Preamble

The Government of the Republic of China and the Government of
the Kingdom of Swaziland desiring to promote and strengthen the
economic relations between the two countries,

Have agreed as follows:


Article 1 Personal Scope
This Agreement shall apply to persons who are residents of one
or both of the Contracting States.

Article 2 Taxes Covered
1. This Agreement shall apply to taxes on income imposed on
behalf of a Contracting State or of its political
subdivisions, irrespective of the manner in which they are
levied.
2. There shall be regarded as taxes on income, all taxes imposed
on total income, including taxes on gains from the alienation
of movable or immovable property.
3. The existing taxes to which the Agreement shall apply are in
particular:
(a) in the Republic of China:
the profit seeking enterprise income tax and the individual
consolidated income tax; and
(b) in Swaziland, the taxes imposed under the Income Tax Act.
4. The Agreement shall apply also to any identical or
substantially similar taxes which are imposed after the date
of signature of the Agreement in addition to, or in place of,
the existing taxes. At the end of each year, the competent
authorities of the Contracting States shall notify each other
of changes which have been made in their respective taxation
laws.

Article 3 General Definitions
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) the term "China" means the Republic of China and, when used
in a geographical sense, includes the territorial sea
thereof as well as any area outside the territorial sea in
respect of which China is entitled, in accordance with
international law, to exercise sovereign rights or
jurisdiction;
(b) the term "Swaziland" means the Kingdom of Swaziland;
(c) the terms "a Contracting State" and "the other Contracting
State" mean the Republic of China or Swaziland, as the
context requires;
(d) the term "company" means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(e) the term "competent authority" means:
(i) in the case of the Republic of China, the Director
General, Department of Taxation, Ministry of Finance or
his authorized representative; and
(ii) in the case of Swaziland, the Commissioner of Taxes or
his authorized representative;
(f) the terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean
respectively an enterprise carried on by a resident of a
Contracting State and an enterprise carried on by a
resident of the other Contracting State;
(g) the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise which has its
place of effective management in a Contracting State,
except when the ship or aircraft is operated solely between
places in the other Contracting State;
(h) the term "national" means:
(i) any individual possessing the nationality of a
Contracting State;
(ii) any legal person, partnership or association deriving
its status as such from the laws in force in a
Contracting State; and
(i) the term "person" includes an individual, a company and any
other body of persons which is treated as an entity for tax
purposes.
2. As regards the application of the provisions of the Agreement
at any time by a Contracting State, any term not defined
therein shall, unless the context otherwise requires, have
the meaning that it has at that time under the law of that
State for the purposes of the taxes to which the Agreement
applies, any meaning under the applicable tax laws of that
State prevailing over a meaning given to the term under other
laws of that State.

Article 4 Resident
1. For the purposes of this Agreement, a person is a resident of
a Contracting State if, under the laws of that State, the
person is liable to tax by reason of domicile, residence,
place of head office, place of management or incorporation or
other criterion of a similar nature.
2. A person is not a resident of a Contracting State for the
purposes of this Agreement if the person is liable to tax in
that State in respect only of income from sources in that
State, provided that this paragraph shall not apply to
individuals resident in the State referred to in subparagraph
1(a) or 1(b) of Article 3.
3. Where by reason of the provisions of paragraphs 1 and 2 an
individual is a resident of both Contracting States, then his
status shall be determined as follows:
(a) he shall be deemed to be a resident only of the State in
which he has a permanent home available to him; if he has a
permanent home available to him in both States, he shall be
deemed to be a resident of the State with which his
personal and economic relations are closer (centre of vital
interests);
(b) if the State in which he has his centre of vital interests
cannot be determined, or if he has not a permanent home
available to him in either State, he shall be deemed to be
a resident only of the State in which he has an habitual
abode;
(c) if he has an habitual abode in both States or in neither of
them, he shall be deemed to be a resident only of the State
of which he is a national;
(d) if he is a national of both States or of neither of them,
the competent authorities of the Contracting States shall
settle the question by mutual agreement.
4. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both Contracting
States, then it shall be deemed to be a resident only of the
State in which its place of effective management is situated.

Article 5 Permanent Establishment
1. For the purposes of this Agreement, the term "permanent
establishment" means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources;
(g) a building site, a construction, installation or assembly
project or any supervisory activity in connection with such
site or project but only if such site, project or activity
lasts more than twelve months; and
(h) the furnishing of services, including consultancy services,
by an enterprise through employees or other personnel
engaged by the enterprise for such purposes, but only where
activities of that nature continue (for the same or a
connected project) within a Contracting State for a period
or periods aggregating more than 183 days within any twelve
month period.
3. Notwithstanding the preceding provisions of this Article, the
term "permanent establishment" shall be deemed not to include:
(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to
the enterprise;
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise, or of
collecting information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the
purpose of advertising, for the supply of information, for
scientific research or for similar activities which have a
preparatory or auxiliary character, for the enterprise; and
(f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs (a) to
(e), provided that the overall activity of the fixed place
of business resulting from this combination is of a
preparatory or auxiliary character.
4. Notwithstanding the provisions of paragraphs 1 and 2, where a
person - other than an agent of an independent status to whom
paragraph 5 applies - is acting on behalf of an enterprise
and has, and habitually exercises, in a Contracting State an
authority to conclude contracts in the name of the
enterprise, that enterprise shall be deemed to have a
permanent establishment in that State in respect of any
activities which that person undertakes for the enterprise,
unless the activities of such person are limited to those
mentioned in paragraph 3 which, if exercised through a fixed
place of business, would not make this fixed place of
business a permanent establishment under the provisions of
that paragraph.
5. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it
carries on business in that State through a broker, general
commission agent or any other agent of an independent status,
provided that such persons are acting in the ordinary course
of their business.
6. The fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a
resident of the other Contracting State, or which carries on
business in that other State (whether through a permanent
establishment or otherwise), shall not of itself constitute
either company a permanent establishment of the other.

Article 6 Income from Immovable Property
1. Income derived by a resident of a Contracting State from
immovable property, including income from agriculture or
forestry, situated in the other Contracting State may be
taxed in that other State.
2. The term "immovable property" shall have the meaning which it
has under the law of the Contracting State in which the
property in question is situated. The term shall in any case
include property accessory to immovable property, livestock
and equipment used in agriculture and forestry, rights to
which the provisions of general law respecting landed
property apply, usufruct of immovable property and rights to
variable or fixed payments as consideration for the working
of, or the right to work, mineral deposits, sources and other
natural resources. Ships, boats and aircraft shall not be
regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived
from the direct use, letting or use in any other form of
immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.

Article 7 Business Profits
1. The profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries on
business in the other Contracting State through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits of the enterprise may be
taxed in the other State but only so much of them as is
attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise
of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed
to that permanent establishment the profits which it might be
expected to make if it were a distinct and separate
enterprise engaged in the same or similar activities under
the same or similar conditions and dealing wholly
independently with the enterprise of which it is a permanent
establishment.
3. In determining the profits of a permanent establishment,
there shall be allowed as deductions expenses which are
incurred for the purposes of the permanent establishment,
including executive and general administrative expenses so
incurred, whether in the State in which the permanent
establishment is situated or elsewhere.
4. In so far as it has been customary in a Contracting State to
determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total
profits of the enterprise to its various parts, nothing in
paragraph 2 shall preclude that Contracting State from
determining the profits to be taxed by such an apportionment
as may be customary. The method of apportionment adopted
shall, however, be such that the result shall be in
accordance with the principles contained in this Article.
5. No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent
establishment of goods or merchandise for the enterprise.
6. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
7. Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.

Article 8 Shipping and Air Transport
1. Profits of an enterprise of a Contracting State from the
operation of ships or aircraft in international traffic shall
be taxable only in that State.
2. Profits that mentioned in this Article include profits from
the rental of ships or aircraft on a full (time, voyage, or
bare boat) basis, and profits from the rental of containers
and related equipment which is incidental to the operation of
ships or aircraft in international traffic.
3. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.

Article 9 Associated Enterprises
1. Where:
(a) an enterprise of a Contracting State participates directly
or indirectly in the management, control or capital of an
enterprise of the other Contracting State; or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
Contracting State and an enterprise of the other
Contracting State,
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations
which differ from those which would be made between
independent enterprises, then any profits which would, but
for those conditions, have accrued to one of the enterprises,
but, by reason of those conditions, have not so accrued, may
be included in the profits of that enterprise and taxed
accordingly.
2. Where a Contracting State includes in the profits of an
enterprise of that State and taxes accordingly profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so
included are profits which would have accrued to the
enterprise of the first-mentioned State if the conditions
made between the two enterprises had been those which would
have been made between independent enterprises, then that
other State shall make an appropriate adjustment to the
amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to the
other provisions of this Agreement and the competent
authorities of the Contracting States shall if necessary
consult each other.

Article 10 Dividends
1. Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting
State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting
State of which the company paying the dividends is a resident
and according to the laws of that State, but if the
beneficial owner of the dividends is a resident of the other
Contracting State, the tax so charged shall not exceed 10 per
cent of the gross amount of the dividends.
3. The term "dividends" as used in this Article means income
from shares or other rights participating in profits (not
being debt-claims), as well as income from other corporate
rights which is subjected to the same taxation treatment as
income from shares by the laws of the State of which the
company making the distribution is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other
Contracting State of which the company paying the dividends
is a resident, through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the holding
in respect of which the dividends are paid is effectively
connected with such permanent establishment or fixed base.
In such case, the provisions of Article 7 or Article 15, as
the case may be, shall apply.
5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State,
that other State may not impose any tax on the dividends paid
by the company, except in so far as such dividends are paid
to a resident of that other State or in so far as the holding
in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base
situated in that other State, nor subject the company's
undistributed profits to a tax on undistributed profits, even
if the dividends paid or the undistributed profits consist
wholly or partly of profits or income arising in such other
State.
6. Notwithstanding any other provisions of this Agreement where
a company which is a resident of a Contracting State has a
permanent establishment in the other Contracting State, the
profits attributable to the permanent establishment may be
subject to an additional tax in that other State in
accordance with its law, but the additional tax so charged
shall not exceed 10 per cent of the amount of such profits
after deducting therefrom the income tax and other taxes on
income imposed thereon in that other State.

Article 11 Interest
1. Interest arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other State.
2. However, such interest may also be taxed in the Contracting
State in which it arises, and according to the laws of that
State, but if the beneficial owner of the interest is a
resident of the other Contracting State, the tax so charged
shall not exceed 10 per cent of the gross amount of the
interest. The competent authorities of the Contracting States
shall settle the mode of application of these limitations by
mutual agreement.
3. Notwithstanding the provisions of paragraph 2, interest
arising in a Contracting State shall be exempt from tax in
that State if it is derived by the Government of the other
Contracting State or a political sub-division or a local
authority thereof, or any agency wholly owned and controlled
by that Government or sub-division or authority.
4. The term "interest" as used in this Article means income from
debt claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the
debtor's profits, and in particular, income from government
securities and income from bonds or debentures, including
premiums and prizes attaching to such securities, bonds or
debentures. Penalty charges for late payment shall not be
regarded as interest for the purposes of this Article.
5. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the interest arises, through a
permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base
situated therein, and the debt claim in respect of which the
interest is paid is effectively connected with such permanent
establishment or fixed base. In such case, the provisions of
Article 7 or Article 15, as the case may be, shall apply.
6. Interest shall be deemed to arise in a Contracting State when
the payer is that State itself, a political subdivision, a
local authority or a resident of that State. Where, however,
the person paying the interest, whether he is a resident of a
Contracting State or not, has in a Contracting State a
permanent establishment or a fixed base in connection with
which the indebtedness on which the interest is paid was
incurred, and such interest is borne by such permanent
establishment or fixed base, then such interest shall be
deemed to arise in the State in which the permanent
establishment or fixed base is situated.
7. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to
the debt-claim for which it is paid, exceeds the amount which
would have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of
this Article shall apply only to the last-mentioned amount.
In such case, the excess part of the payments shall remain
taxable according to the laws of each Contracting State, due
regard being had to the other provisions of this Agreement.

Article 12 Royalties
1. Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other State.

2. However, such royalties may also be taxed in the Contracting
State in which they arise, and according to the laws of that
State, but if the beneficial owner of the royalties is a
resident of the other Contracting State, the tax so charged
shall not exceed 10 per cent of the gross amount of the
royalties.
3 The term "royalties" as used in this Article means payments
of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or
scientific work (including cinematography films and films,
tapes or discs for radio or television broadcasting), any
patent, trade mark, design or model, plan, secret formula or
process, or for information concerning industrial, commercial
or scientific experience.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the royalties arise, through a
permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base
situated therein, and the right or property in respect of
which the royalties are paid is effectively connected with
such permanent establishment or fixed base. In such case,
the provisions of Article 7 or Article 15, as the case may
be, shall apply.
5. Royalties shall be deemed to arise in a Contracting State
when the payer is that State itself, a political subdivision,
a local authority or a resident of that State. Where,
however, the person paying the royalties, whether he is a
resident of a Contracting State or not, has in a Contracting
State a permanent establishment or a fixed base with which
the right or property in respect of which the royalties are
paid is effectively connected, and such royalties are borne
by such permanent establishment or fixed base, then such
royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to
the use, right or information for which they are paid,
exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such
relationship, the provisions of this Article shall apply only
to the last mentioned amount. In such case, the excess part
of the payments shall remain taxable according to the laws of
each Contracting State, due regard being had to the other
provisions of this Agreement.

Article 13 Technical Fees
1. Technical fees arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other State.
2. However, such technical fees may also be taxed in the
Contracting State in which they arise and according to the
law of that State, but if the beneficial owner is subject to
tax in respect of the technical fees in the other Contracting
State, the tax so charged shall not exceed 10 per cent of the
gross amount of the technical fees.
3. The term "technical fees" as used in this Article means
payments of any kind to any person, other than to an employee
of the person making the payments, in consideration for any
services of a technical, managerial or consultancy nature.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the technical fees, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the technical fees arise, through
a permanent establishment situated therein, or performs in
that other State independent personal services from a fixed
base situated therein, and the technical fees are effectively
connected with such permanent establishment or fixed base.
In such case the provisions of Article 7 or Article 15, as
the case may be, shall apply.
5. Technical fees shall be deemed to arise in a Contracting
State when the payer is that State itself, a political sub
division, a local authority or a resident of that State.
Where, however, the person paying the technical fees, whether
he is a resident of a Contracting State or not, has in a
Contracting State a permanent establishment or a fixed base
in connection with which the obligation to pay the technical
fees was incurred, and such technical fees are borne by that
permanent establishment or fixed base, then such technical
fees shall be deemed to arise in the Contracting State in
which the permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the technical fees paid exceeds
the amount which would have been agreed upon by the payer and
the beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the
payments shall remain taxable according to the laws of each
Contracting State, due regard being had to the other
provisions of this Agreement.

Article 14 Capital Gains
1. Gains derived by a resident of a Contracting State from the
alienation of immovable property referred to in Article 6 and
situated in the other Contracting State may be taxed in that
other State.
2. Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an
enterprise of a Contracting State has in the other
Contracting State or of movable property pertaining to a
fixed base available to a resident of a Contracting State in
the other Contracting State for the purpose of performing
independent personal services, including such gains from the
alienation of such a permanent establishment (alone or with
the whole enterprise) or of such fixed base, may be taxed in
that other State.
3. Gains from the alienation of ships or aircraft operated in
international traffic, movable property pertaining to the
operation of such ships or aircraft, shall be taxable only in
the Contracting State in which the place of effective
management of the enterprise is situated.
4. Gains from the alienation of any property other than that
referred to in paragraphs 1, 2 and 3, shall be taxable only
in the Contracting State of which the alienator is a resident.

Article 15 Independent Personal Services
1. Income derived by an individual who is a resident of a
Contracting State in respect of professional services or
other activities of an independent character shall be taxable
only in that State. However, such income may also be taxed in
the other Contracting State if such services or activities
are performed in the other Contracting State and if:
(a) he has a fixed base regularly available to him in the other
Contracting State for the purpose of performing his
activities; or
(b) his stay in the other Contracting State for the purpose of
performing his services or activities is for a period or
periods exceeding in the aggregate 183 days in any twelve
month period commencing or ending in the year of assessment
concerned; or
(c) the income derived from such activities in that other State
is paid by a resident of that other State or is borne by a
permanent establishment or a fixed base situated in that
other State.
2. The term "professional services" includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, dentists and
accountants.

Article 16 Dependent Personal Services
1. Subject to the provisions of Articles 17, 19, and 20,
salaries, wages and other similar remuneration derived by a
resident of a Contracting State in respect of an employment
shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment
is so exercised, such remuneration as is derived therefrom
may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by a resident of a Contracting State in respect of an
employment exercised in the other Contracting State shall be
taxable only in the first mentioned State if:
(a) the recipient is present in the other State for a period or
periods not exceeding in the aggregate 183 days in any
twelve month period commencing or ending in the fiscal year
concerned; and
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic
by an enterprise of a Contracting State may be taxed in that
State.

Article 17 Directors' Fees
Directors' fees and other similar payments derived by a resident
of a Contracting State in his capacity as a member of the board
of directors of a company which is a resident of the other
Contracting State may be taxed in that other State.

Article 18 Artistes and Sportspersons
1. Notwithstanding the provisions of Articles 15 and 16, income
derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or
television artiste, or a musician, or as a sportsperson, from
his personal activities as such exercised in the other
Contracting State, may be taxed in that other State.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsperson in his capacity as such
accrues not to the entertainer or sportsperson himself but to
another person, that income may, notwithstanding the
provisions of Articles 7, 15 and 16, be taxed in the
Contracting State in which the activities of the entertainer
or sportsperson are exercised.

Article 19 Pensions and Annuities
1. Subject to the provisions of paragraph 2 of Article 20,
pensions and other similar remuneration and annuities arising
in a Contracting State and paid to a resident of the other
Contracting State, may be taxed in the first-mentioned State.
2. The term "annuity" means a stated sum payable periodically at
stated times during life or during a specified or
ascertainable period of time under an obligation to make the
payments in return for adequate and full consideration in
money or money's worth.

Article 20 Government Service
1.
(a) Salaries, wages and other similar remuneration, other than
a pension, paid by a Contracting State or a political
subdivision or a local authority thereof to an individual
in respect of services rendered to that State or
subdivision or authority shall be taxable only in that
State.
(b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other Contracting
State if the services are rendered in that State and the
individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the
purpose of rendering the services.
2.
(a) Any pension paid by, or out of funds created by, a
Contracting State or a political subdivision or a local
authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be
taxable only in that State.
(b) However, such pension shall be taxable only in the other
Contracting State if the individual is a resident of, and a
national of, that State.
3. The provisions of Articles 16, 17, 18 and 19 shall apply to
salaries, wages and other similar remuneration, and to
pensions in respect of services rendered in connection with a
business carried on by a Contracting State or a political
subdivision or a local authority thereof.

Article 21 Teachers, Researchers and Students
1 An individual who visits a Contracting State at the
invitation of that State or of a university, college, school,
museum or other cultural institution of that State or under
an official program of cultural exchange for a period not
exceeding two years solely for the purpose of teaching,
giving lectures or carrying out research at such institution
and who is, or was immediately before that visit, a resident
of the other Contracting State shall be exempt from tax in
the first-mentioned State on his remuneration for such
activity, provided that such remuneration is derived by him
from outside that State.
2. Payments which a student, apprentice or business trainee who
is or was immediately before visiting a Contracting State a
resident of the other Contracting State and who is present in
the first-mentioned State solely for the purpose of his
education or training receives for the purpose of his
maintenance, education or training shall not be taxed in that
State, provided that such payment arise from sources outside
that state.

Article 22 Other Income
1. Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the foregoing Articles of
this Agreement shall be taxable only in that State except
that if such income is derived from sources within the other
State, that income may also be taxed in that other State.
2. The provisions of paragraph 1 shall not apply to income,
other than income from immovable property as defined in
paragraph 2 of Article 6, if the recipient of such income,
being a resident of a Contracting State, carries on business
in the other Contracting State through a permanent
establishment situated therein, or performs in that other
State independent personal services from a fixed base
situated therein, and the right or property in respect of
which the income is paid is effectively connected with such
permanent establishment or fixed base. In such case, the
provisions of Article 7 or Article 15, as the case may be,
shall apply.

Article 23 Elimination of Double Taxation
Subject to the provisions of the laws of a Contracting State
from time to time in force relating the allowance of a credit
against tax payable in that State of tax paid outside that State
(which shall not affect the general principle of this Article),
tax paid under the laws of the other State and in accordance
with this Agreement, whether directly or by deduction, in
respect of income derived by a person who is a resident of the
first-mentioned State from sources in the other State shall be
allowed as a credit against tax payable in the first-mentioned
State in respect of that income. The amount of credit, however,
shall not exceed the amount of the tax in the first-mentioned
State on that income computed in accordance with its taxation
laws and regulations.


Article 24 Non-discrimination
1. Nationals of a Contracting State shall not be subjected in
the other Contracting State to any taxation or any
requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which nationals of that other State in the same circumstances
are or may be subjected. This provision shall,
notwithstanding the provisions of Article 1, also apply to
persons who are not residents of one or both of the
Contracting States.
2. The taxation on a permanent establishment which an enterprise
of a Contracting State has in the other Contracting State
shall not be less favorably levied in that other State than
the taxation levied on enterprises of that other State
carrying on the same activities. This provision shall not be
construed as obliging a Contracting State to grant to
residents of the other Contracting State any personal
allowances, reliefs and reductions for taxation purposes on
account of civil status or family responsibilities which it
grants to its own residents.
3. Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly,
by one or more residents of the other Contracting State,
shall not be subjected in the first mentioned State to any
taxation or any requirement connected therewith which is
other or more burdensome than the taxation and connected
requirements to which other similar enterprises of the
first-mentioned State are or may be subjected.
4. Except where the provisions of paragraph 1 of Article 9,
paragraph 7 of Article 11, paragraph 6 of Article 12 or
paragraph 6 of Article 13 apply, interest, royalties,
technical fees and other disbursements paid by an enterprise
of a Contracting State to a resident of the other Contracting
State shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same
conditions as if they had been paid to a resident of the
first-mentioned State.
5. In this Article the term "taxation" means taxes which are the
subject of this Agreement.

Article 25 Mutual Agreement Procedure
1. Where a person considers that the actions of one or both of
the Contracting States result or will result for him in
taxation not in accordance with the provisions of this
Agreement, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the
competent authority of the Contracting State of which he is a
resident or, if his case comes under paragraph 1 of Article
24, to that of the Contracting State of which he is a
national. The case must be presented within three years from
the first notification of the action resulting in taxation
not in accordance with the provisions of the Agreement.
2. The competent authority shall endeavor, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
Contracting State, with a view to the avoidance of taxation
which is not in accordance with this Agreement. Any
agreement reached shall be implemented notwithstanding any
time limits in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall
endeavor to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Agreement. They may also consult together for the
elimination of double taxation in cases not provided for in
the Agreement.
4. The competent authorities of the Contracting States may
communicate with each other directly for the purpose of
reaching an agreement in the sense of the preceding
paragraphs.

Article 26 Exchange of Information
1. The competent authorities of the Contracting States shall
exchange such information as is necessary for carrying out
the provisions of this Agreement or of the domestic laws of
the Contracting States concerning taxes covered by the
Agreement in so far as the taxation thereunder is not
contrary to the Agreement. The exchange of information is
not restricted by Article 1. Any information received by a
Contracting State shall be treated as secret in the same
manner as information obtained under the domestic laws of
that State and shall be disclosed only to persons or
authorities (including courts and administrative bodies)
concerned with the assessment or collection of, the
enforcement or prosecution in respect of, or the
determination of appeals in relation to, the taxes covered by
the Agreement. Such persons or authorities shall use the
information only for such purposes. They may disclose the
information in public court proceedings or in judicial
decisions.
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on a Contracting State the obligation:
(a) to carry out administrative measures at variance with the
laws or the administrative practice of that or of the other
Contracting State;
(b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that
or of the other Contracting State;
(c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information, the disclosure of which
would be contrary to public policy.

Article 27 Members of Diplomatic Missions and Consular Posts
Nothing in this Agreement shall affect the fiscal privileges of
members of diplomatic missions or consular posts under the
general rules of international law or under the provisions of
special agreements.

Article 28 Entry into Force
1. Each of the Contracting States shall notify to the other the
completion of the procedures required by its law for the
bringing into force of this Agreement. The Agreement shall
enter into force on the date of receipt of the later of these
notifications.
2. The provisions of the Agreement shall apply:
(a) in both countries, in respect of withholding tax on income,
profits or gains derived by a non-resident, in relation to
income, profits or gains derived on or after the first day
of the second month next following that in which the
Agreement enters into force;
(b) in respect of other tax of the Republic of China, in
relation to income, profits or gains of any year of income
beginning on or after 1 January in the calendar year next
following that in which the Agreement enters into force;
(c) in Swaziland as regards other taxes, for any year of
assessment (year of income) beginning on or after 1 July in
the calendar year next following that in which the
Agreement enters into force.

Article 29 Termination
1 This Agreement shall remain in force indefinitely but either
of the Contracting States may terminate the Agreement through
the diplomatic channel, by giving to the other Contracting
State written notice of termination not later than 30 June of
any calendar year starting five years after the year in which
the Agreement entered into force.
2. In such event the Agreement shall cease to apply:
(a) in both countries, in respect of withholding tax on income,
profits or gains derived by a non-resident, in relation to
income, profits or gains derived on or after the first day
of the second month next following that in which the notice
of termination is given;
(b) in respect of other tax of the Republic of China, in
relation to income, profits or gains of any year of income
beginning on or after 1 January in the calendar year next
following that in which the notice of termination is given;
(c) in Swaziland as regards other taxes, for any year of
assessment (year of income) beginning on or after 1 July in
the calendar year next following that in which the notice
of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorized
thereto, have signed this Agreement.

DONE in duplicate at Mbabane this Seventh day of September 1998
in the English and Chinese languages, both texts being equally
authentic. In case of divergence of interpretation, the English
text shall prevail.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE
REPUBLIC OF CHINA KINGDOM OF SWAZILAND

_________________________ _________________________
ENTI LIU THEMBA N. MASUKU
AMBASSADOR MINISTER
EXTRAORDINARY AND MINISTRY OF FINANCE
PLENIPOTENTIARY TO THE
KINGDOM OF SWAZILAND