PREAMBLE
WHEREAS the Government of the Republic of China and the
Government of the Republic of South Africa recognise the
friendly relations existing between the two Governments and
their peoples; and
WHEREAS the Government of the Republic of China and the
Government of the Republic of South Africa are desirous of
concluding an agreement for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income;
NOW, THEREFORE, the Government of the Republic of China and the
Government of the Republic of South Africa have agreed as follow:

I. SCOPE OF THE AGREEMENT

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 and on capital
gains imposed on behalf of a Contracting State or of its
political subdivisions, irrespective of the manner in which
they are levied.
2. The existing taxes to which the Agreement shall apply are in
particular:
(a) in the Republic of China-
(i) the profit seeking enterprise income tax;
(ii) the individual consolidated income tax;
(hereinafter referred to as "Chinese tax");
(b) in the Republic of South Africa-
(i) the normal tax;
(ii) the non-resident shareholders' tax;
(hereinafter referred to as "South African tax")
3. This Agreement shall also apply to any other taxes of a
substantially similar character which are subsequently
imposed in addition to, or in place of, the existing taxes.
4. At the end of each calendar year, the competent authorities
of the Contracting States shall notify each other of changes
which have been made in their respective taxation laws, and
if it seems desirable to amend any Article of this Agreement
without affecting the general principles thereof, the
necessary amendments may be made by mutual consent by means
of an Exchange of Diplomatic Notes.

II. DEFINITIONS

Article 3 General Definitions
1. In 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 "South Africa" means the Republic of South Africa
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 international law, to
exercise sovereign rights of jurisdiction;
(c) the terms "Contracting State" and "the other Contracting
State" mean China or South Africa as the context requires;
(d) the term "person" comprises an individual , a company and
any other body of persons which is treated as an entity for
tax purposes;
(e) the term "company" means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(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 "competent authority" means:
(i) in the case of China, the Director General, Department of
Taxation, Ministry of Finance or his authorised
representative; and
(ii) in the case of South Africa, the Commissioner for Inland
Revenue or his authorised representative;
(h) the term "international traffic" means any transport by
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; and
(i) the term "nationals" means:
(a) all individuals possessing the nationality of either
Contracting State; and
(b) all legal persons, partnerships and associations and
other entities deriving their status as such from the
laws in force in that State.
2. As regards the application of this Agreement in either
Contracting State, any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which
it has under the laws in that State relating to the taxes
which are the subject of this Agreement.

Article 4 Fiscal Domicile
1. For the purposes of this Agreement:
(a) the term "resident of the Republic of China" means any
person who is a resident in accordance with the tax laws of
China; and
(b) the term "resident of the Republic of South Africa" means
any individual who is ordinarily resident in South Africa
and any legal person which has its place of management in
South Africa.
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contraction States, then his
case shall be determined in accordance with the following
rules:
(a) he shall be deemed to be a resident of the Contracting
State in which he has a domicile available to him. If he
has a domicile available to him in both Contracting States,
he shall be deemed to be a resident of the Contracting
State with which his personal and economic interests are
closer (centre of vital interests);
(b) if the Contracting State in which he has his centre of
vital interests cannot be determined, or if he has not a
domicile available to him in either Contracting State, he
shall be deemed to be a resident of the Contracting State
in which he has an habitual abode;
(c) if he has an habitual abode in both Contracting States or
in neither of them, he shall be deemed to be a resident of
the Contracting State of which he is a national;
(d) if he is a national of both Contracting States or neither
of them, the competent authorities of the Contracting
States shall settle the question by mutual agreement.
3. Where by reason of he 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 of the
Contracting Stated 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 in which the
business of the enterprise is wholly or partly carried on.
2. The term "permanent establishment" shall include especially:
(a) a place of management;
(b) a branch ;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, oil well, quarry or other place of extraction of
natural resources; and
(g) a building site, construction, installation or assembly
project which exists for a period of more than 12 months.
3. 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 for
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;
(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. An enterprise of a Contracting State, notwithstanding that it
has no fixed place of business in the other Contracting
State, shall be deemed to have a permanent establishment in
that other Contracting State if it carries on supervisory
activities therein in connection with a construction,
installation or assembly project which is being undertaken in
that other Contracting state for a period of more than 12
months.
5. A person acting in a Contracting State on behalf of an
enterprise of the other Contracting State (other than an
agent of an independent status to whom paragraph 6 applies)
notwithstanding that he has no fixed place of business in the
first-mentioned Contracting State shall be deemed to be a
permanent establishment in that State if-
(a) he has, and habitually exercises, a general authority in
the first-mentioned Contracting State to conclude contracts
in the name of the enterprise; or
(b) he maintains in the first-mentioned Contracting State a
stock of goods or merchandise belonging to the enterprise
from which he regularly fills orders on behalf of the
enterprise; or
(c) he regularly secures orders in the first-mentioned
Contracting State wholly or almost wholly for the
enterprise.
6. An enterprise of a Contracting State shall not be deemed to
have a permanent establishment in the other Contracting State
merely because it carries on business in that other
Contracting State through a broker, general commission agent
or any other agent of an independent status, where such
persons are acting in the ordinary course of their business.
7. 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 Contracting State (whether through a
permanent establishment or otherwise), shall not of itself
constitute either company a permanent establishment of the
other.

III. TAXATION OF INCOME

Article 6 Income from Immovable property
1. Income from immovable property (including income from
agriculture and forestry) may be taxed in the Contracting
State in which such property is situated.
2. The term “immovable property” shall be defined in
accordance with the law in 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 Contracting 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 the determination of 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 Contracting State in
which the permanent establishment is situated or elsewhere.
4. No profits shall be attributed to a permanent establishment
by reason of the mere of the mere purchase by that permanent
establishment of goods or merchandise for the enterprise.
5. 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.
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 reason to the contrary.

Article 8 Shipping and Air Transport
1. Profits from the operation or rental of ships or aircraft in
international traffic and the rental of containers and
related equipment which is incidental to the operation of
ships or aircraft in international traffic shall be taxable
only in the Contracting State in which the place of effective
management of the enterprise is situated.
2. If the place of effective management of a shipping enterprise
is aboard a ship or boat, then it shall be deemed to be
situated in the Contracting State of which the operator of
the ship or boat is a resident.
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 Contracting State and the
profits so included are profits which would have accrued to
the enterprise of the first-mentioned Contracting State if
the conditions made between the two enterprises had been
those which would have been made between independent
enterprises, then that other Contracting 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 arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other Contracting 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 contracting State, but if
the recipient is the beneficial owner of the dividends the
tax so charged shall not exceed:
(a) 5 per cent of the gross amount of the dividends if the
beneficial owner directly holds at least 10 per cent of the
capital of the company paying the dividends, or
(b) 15 per cent of the gross amount of the dividends in all
other cases.
3. The term "dividends" as used in this Article means income
from shares, mining shares, founders' shares or other rights,
not being debt claims, participating in profits, as well as
income from other corporate rights which is subject to the
same taxation treatment as income from shares according to
the taxation law in the Contracting 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 Contracting 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 a case, the provisions
of Article 7 or Article 14, 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,
no tax may be imposed in that other Contracting State no tax
may be imposed in that other Contracting State on the
dividends paid by the company except in so far as such
dividends are paid to a resident of that other Contracting
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
Contracting State, or on the company's undistributed profits
even if the dividends paid or undistributed profits consist
wholly or partly of profits or income arising in such other
Contracting State.
6. Dividends shall be deemed to arise in a Contracting State if
they are paid by a company resident in that 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 Contracting State.
2. However, such interest may also be taxed in the Contracting
State in which it arises and according to the laws of that
Contracting State, but if the recipient is the beneficial
owner of the interest 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 by mutual
agreement settle the mode of application of this limitation.
3. 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 purpose of this Article.
4. 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 Contracting 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 a case, the
provisions of Article 7 or Article 14, as the case may be,
shall apply.
5. 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 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 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 a 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 Contracting 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 recipient who is a resident of the other
Contracting State beneficially owns the royalties, the tax so
charged shall not exceed 10 per cent of the gross amount of
the royalties. The competent authorities of the Contracting
States shall by mutual agreement settle the mode of
application of this limitation.
3. The provisions of paragraph 2 of this Article shall likewise
apply to proceeds arising from the alienation of any
copyright of scientific work, any patent, trade mark, design
or model, plan, or secret formula or process.
4. 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 cinematograph 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 the use of, or the right to use, industrial,
commercial or scientific equipment, or for information
concerning industrial or scientific experience.
5. 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 Contracting 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 a case, the provisions of Article 7 or Article 14, as
the case may be, shall apply.
6. Where, owing to a special relationship between the payer and
the beneficial owner or between both of them and some other
person, the amount of the royalties paid, 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 a 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.
7. Royalties shall be deemed to arise in a Contracting state
when the payer is 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 in connection with
which the obligation to pay the royalties was incurred, and
such royalties are borne by such permanent establishment or
fixed base, then such royalties shall be deemed to arise in
the Contracting State in which the permanent establishment or
fixed base is situated.

Article 13 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 Contracting 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 Contracting State.
3. Gains from the alienation of ships or aircraft operated in
international traffic, boats engaged in inland waterways
transport or movable property pertaining to the operation of
such ships, aircraft or boats, shall be taxable only in the
Contracting State in which the place of effective management
of the enterprise is situated.
4. Subject to the provisions of Article 12(3), 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 14 Independent Personal Services
1. Income derived by 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
unless he has a fixed base regularly available to him in the
other Contracting State for the purpose of performing his
activities. If he has such a fixed base, the income may be
taxed in the other Contracting State but only so much of it
as is attributable to that fixed base.
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 15 Dependent Personal Services
1. Subject to the provisions of Articles 16, 18 and 19,
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 Contracting 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 Contracting State if :
(a) the recipient is present in the other Contracting State for
a period or periods not exceeding in the aggregate 183 days
in the calendar year concerned; and
(b) the remuneration is paid by or on behalf of an employer who
is not a resident of the other Contracting State; and
(c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other
Contracting State.
3. Notwithstanding the previous provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic
may be taxed in the Contracting State in which the place of
effective management of the enterprise is situated.

Article 16 Directors' fees
Directors' fees and 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 Contracting State.

Article 17 Artistes and Athletes
1. Notwithstanding the provisions of Articles 14 and 15, income
derived by entertainers such as theatre, motion picture,
radio or television artistes, and musicians, or by athletes,
from their personal activities as such may be taxed in the
Contracting State in which these activities are exercised.
2. Where income in respect of personal activities exercised by
an entertainer or an athlete in his capacity as such accrues
not to the entertainer or athlete himself but to another
person, that income may, notwithstanding the provisions of
Articles 7, 14 and 15, be taxed in the Contracting State in
which the activities of the entertainer or athlete are
exercised.

Article 18 Pensions and Annuities
1. Any pension (other than a pension of the kind referred to in
paragraph 2 of Article 19) and any annuity, derived from
sources within a Contracting State by an individual who is a
resident of the other Contracting State and is subject to tax
on the whole or portion thereof in the other Contracting
State, shall be exempt from tax in the first-mentioned
Contracting State to the extent that it is included in income
for the purpose of the other Contracting State.
2. The term "annuity" as used in this Article 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 consideration of money
paid.

Article 19 Government Service
1. Remuneration (other than pensions) paid by, or out of funds
created by, one of the Contracting States or a political
subdivision or local authority thereof to any individual for
services rendered to that State or a political subdivision or
local authority thereof in the discharge of functions of a
government nature shall be exempt from tax in the other
Contracting State if the individual is not ordinarily
resident in that other Contracting State or is ordinarily
resident in that other Contracting State solely for the
purpose of rendering those services.
2. Any pension paid by, or out of funds created by, one of the
Contracting States or a political subdivision or local
authority thereof to any individual for services rendered to
that State or a political subdivision or local authority
thereof in the discharge of functions of a government nature
shall be exempt from tax in the other Contracting State in so
far as the remuneration for those services was exempt from
tax in that other Contracting State under paragraph 1 of this
Article or would have been so exempt if this Agreement had
been in force when the remuneration was paid.
3. The provisions of this article shall not apply to payments in
respect of services rendered in connection with any trade or
business carried on by either of the Contracting States or a
political subdivision or local authority thereof for purpose
of profits.

Article 20 Teachers and Students
1. Notwithstanding the provisions of Article 15, a teacher who
makes a temporary visit to one of the Contracting States for
a period not exceeding two years for the purpose of teaching
at a university, college, school or other educational
institution in that State and who is, or immediately before
such visit was, a resident of the other Contracting State
shall, in respect of remuneration for such teaching, be
exempt from tax in the first-mentioned Contracting State if
he is subject to tax in the other Contracting State in
respect of such remuneration .
2. A student or business apprentice who is present in a
Contracting State solely for the purpose of his education or
training and who is, or immediately before being so present
was, a resident of the other Contracting State shall be
exempt from tax in the first-mentioned Contracting State on
payments received from outsied that first-mentioned
Contracting State for the purposes of his maintenance,
education or training.

Article 21 Other Income
Any income not dealt with in the foregoing provisions of this
Agreement derived by a resident of a Contracting State who is
subject to tax there in respect thereof shall be subjected to
tax only in that State.

IV. ELIMINATION OF DOUBLE TAXATION

Article 22 Elimination of Double Taxation
1. In the case of South Africa, taxes paid by South African
residents in respect of income taxable in China, in
accordance with the provisions of this Agreement, shall be
deducted from the South African taxes due according to South
African fiscal law. Such deduction shall not, however,
exceed that part of the income tax, as computed before the
deduction is given, which is attributable to the income which
may be taxed in China.
2. In the case of China, taxes paid by Chinese residents in
respect of income taxable in South Africa, in accordance with
the provisions of this Agreement, shall be deducted from the
Chinese taxes due according to Chinese tax law. The
deduction shall not exceed the amount of tax which, computed
at the applicable Chinese tax rate, is increased in
consequence of the inclusion of the income which may be taxed
in South Africa.
3. A grant given by one of the Contracting States, a political
subdivision, or any agency thereof to a resident of the other
Contracting State under the laws of, and for the purpose of
promoting economic development or decentralization in, the
first-mentioned Contracting State, shall not be taxable in
the other Contracting State.
4. Paragraphs 1 and 2 of this Article shall have no application
in relation to any tax which is repayable.

V. SPECIAL PROVISIONS

Article 23 Non-discrimination
1. The 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.
2. The taxation on a permanent establishment which an enterprise
of a Contracting State has in the other Contracting State
shall not be less favourably levied in that other Contracting
State than the taxation levied on enterprises of that other
Contracting State carrying on the same activities.
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 Contracting
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
that first-mentioned Contracting State are or may be
subjected.
4. In this Article the term "taxation" means taxes which are the
subject of this Agreement.

Article 24 Mutual Agreement Procedure
1. Where a resident of a Contracting State considers that the
actions of one or both of the Contracting States result or
will result for him in taxation not in accordance with this
Agreement, he may, notwithstanding the remedies provided by
the domestic laws of those Contracting States, present his
case to the competent authority of the Contracting State of
which he is a resident. 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 this Agreement.
2. The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at an appropriate 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
not in accordance with the Agreement.
3. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of
this Agreement. They may also consult together for the
elimination of double taxation in cases not provided for in
this 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 25 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 and of the domestic laws of
the Contracting States concerning taxes covered by this
Agreement in so far as the taxation thereunder is in
accordance with this Agreement. Any information so exchanged
shall be treated as secret and shall not be disclosed to any
persons or authorities other than those concerned with the
assessment or collection of the taxes which are the subject
of this Agreement.
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on one of the competent authorities 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 particulars which are 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 26 Diplomatic Agents and Consular Officers
Nothing in this Agreement shall affect the fiscal privileges of
diplomatic agents or consular officers under the general rules
of international law or under the provisions of special
agreements.

Article 27 Termination of the Sea and Air Transport Agreement
of 1980
The Agreement between the Government of the Republic of China
and the Government of the Republic of South Africa for the
reciprocal exemption from taxes on income derived from the
operation of sea and air transport, signed on the 11th day of
the 3rd month of the 69th year of the Republic of China,
corresponding to 11 March 1980, shall be terminated as from the
commencement of any year or period for which this Agreement has
effect.

Article 28 Entry into Force
This Agreement shall enter into force on the date on which both
Contracting States shall have notified each other of compliance
with their respective constitutional requirements for entry into
force of this Agreement and thereupon shall have effect-
(a) in respect of taxes withheld at source, for amounts paid or
credited on or after the first day of the second month next
following the date on which the Agreement enters into
force; and
(b) in respect of other taxes, for taxable years of the persons
entitled to the benefits of this Agreement beginning on or
after the first day of the second month next following the
date on which the Agreement enters into force.

Article 29 Termination
This Agreement shall remain in force until terminated by either
of the Contracting States. Either of the Contracting States may
terminate the Agreement at any time after a period of five years
from the date on which the Agreement enters into force, provided
that written notice of termination has been given not later than
30 June of any calendar year. In such event, the Agreement
shall cease to have effect-
(a) in respect of taxes withheld at source, for amounts paid or
credited after the end of the calendar year in which the
notice is given; and
(b) in respect of other taxes, for taxable years of persons
entitled to the benefits of the Agreement beginning on or
after the first day of January next following the calendar
year in which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised
thereto, have signed this Agreement.
DONE in duplicate at Pretoria, this Fourteenth day of the Second
month of the Eighty Third year of the Republic of China,
corresponding to the Fourteenth day of February of the year one
Thousand Nine Hundred and Ninety Four, in the Chinese and
English languages, both texts being equally authentic.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE
REPUBLIC OF CHINA REPUBLIC OF SOUTH AFRICA
Chen-Kuo Lin D. L. Keys