The Republic of China
And
The Republic of Paraguay,
DESIRING to conclude a convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income,
HAVE AGREED AS FOLLOWS:
ARTICLE 1
PERSONAL SCOPE
This Convention shall apply to persons who are residents of one
or both of the Contracting States.
ARTICLE 2
TAXES COVERED
1.The existing taxes to which this Convention shall apply are:
(a)in the Republic of China:
--the individual consolidated income tax and the profit
seeking enterprise income tax;
(b)in the Republic of Paraguay:
--the income tax.
2.This Convention shall also apply to any identical or
substantially similar taxes which are imposed after the date
of signature of the Convention in addition to, or in place of,
the existing taxes. The competent authorities of the
Contracting States shall notify each other of any significant
changes which have been made in their respective taxation laws
and of any official published material concerning the
application of the convention, including explanations,
regulations, rulings, or judicial decisions.
ARTICLE 3
GENERAL DEFINITIONS
1.In this Convention, unless the context otherwise requires:
(a)the terms "a Contracting State" and "the other Contracting
State" mean the Republic of China or the Republic of Paraguay
as the context requires;
(b)the term "person" comprises an individual, a company and any
other body of persons which is treated as an entity for tax
purposes;
(c)the term "company" means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(d)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;
(e)the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise of a Contracting
State, except when the ship or aircraft is operated solely
between places in the other Contracting State;
(f) the term "competent authority" means:
(i) in the Republic of China, the Minister of Finance or his
delegate.
(ii)in the Republic of Paraguay, the Minister of Finance or
his delegate;
2.As regards the application of the Convention by a Contracting
State, any term not otherwise defined shall, unless the
context otherwise requires, have the meaning which it has
under the laws of that State concerning the taxes to which the
Convention applies.
ARTICLE 4
RESIDENT
1.For the purposes of this Convention, the term "resident of a
Contracting State" means any person who is a resident in
accordance with the tax laws in that State.
2.Where by reason of the provisions of paragraph 1 an individual
is a resident of both Contracting States, then his case shall
be determined in accordance with the following rules:
(a)he shall be deemed to be a resident 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 of the State in which he has an habitual abode;
(c)if he has an habitual abode in both States or in either of
them, the competent authorities of the State shall settle the
question by mutual agreement.
3.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 of the
Contracting State in which the control and management of its
business is exercised.
ARTICLE 5
PERMANENT ESTABLISHMENT
1.For the purposes of this Convention, 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;
(g)a plantation, farm; and
(h)building site, construction, installation and assembly
project which last for a period of more than twelve months.
3.The term "permanent establishment" shall not be deemed 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 sub-paragraph (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 shall not be deemed to
have a permanent establishment in the other Contracting State
merely because it carries on business in that other 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.
5.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
for either company a permanent establishment of the other.
ARTICLE 6
INCOME FROM IMMOVABLE PROPERTY
1.Income from immovable property 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.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 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, according to the laws of each State, 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 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 Convention, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
ARTICLE 8
SHIPPING AND TRANSPORT
1.Profits derived by an enterprise of a Contracting State from
the operation of ships or aircraft in international traffic
shall be taxable only in that State.
2.Paragraph 1 shall also apply to profits from the participation
in a pool, a joint business or an international operating
agency.
3.Paragraph 1 shall also apply to profits from the rental of
ships or aircraft on a full (time, voyage or bareboat) basis
and profits from the rental of containers and related
equipment, which is incidental to the international operation
of ships or aircraft.
ARTICLE 9
ASSOCIATED ENTERPRISE
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.
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 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 recipient
is the beneficial owner of the dividends, the tax so charged
shall not exceed 5 per cent of the gross amount of the
dividends.
This paragraph shall not affect the taxation of the company in
respect of the profits out of which the dividends are paid.
3.The term "dividends" as used in this Article means income from
shares or other right, 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 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, has in the other Contracting State, of
which the company paying the dividends is a resident, a
permanent establishment with which the holding by virtue of
which the dividends are paid is effectively connected. In such
a case, the provision of Article 7 shall apply.
5.Where a company which is resident of a Contracting State
derives profits or income from the other Contracting State, no
tax may be imposed in that other State on the dividends paid
by the company except insofar as such dividends are paid to a
resident of that other State or insofar as the holding in
respect of which the dividends are paid is effectively
connected with a permanent establishment in that other 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 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
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 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.
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. 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 through a permanent establishment situated
therein, and the debt-claim in respect of which the interest
is paid is effectively connected with such permanent
establishment. In such a case, the provisions of Article 7
shall apply.
5.Interest shall be deemed to arise in a Contracting State when
the payer is that State itself, 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 in connection with which the
indebtedness on which the interest is paid was incurred, and
such interest is borne by such permanent establishment, then
such interest shall be deemed to arise in the State.
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 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 Convention.
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 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.
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 scientific work, 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.
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, has in the other Contracting State in which
the royalties arise, a permanent establishment with which the
right or property in respect of which the royalties are paid
is effectively connected. In such a case, the provisions of
Article 7 shall apply.
5.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 Convention.
6.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 in connection with which the
obligation to pay the royalties was incurred, and such
royalties are borne by such permanent establishment, then such
royalties shall be deemed to arise in the Contracting State in
which the permanent establishment 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 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, 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 enterprise is incorporated.
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 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, 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 Contracting State if:
(a)the recipient is present in the other 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 State; and
(c)the remuneration is not borne by a permanent establishment
which the employer has in the other 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 enterprise
is incorporated.
ARTICLE 16
DIRECTORS’ FEES
1.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 State.
2.The remuneration which a person to whom paragraph 1 applies
derives from the company in respect of the discharge of
day-to-day functions of a managerial or technical nature may
be taxed in accordance with the provisions of Article 15.
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, or 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.
3.The provisions of paragraph 1 shall not apply to remuneration
or profits, salaries, wages and similar income derived from
activities exercised in a Contracting State by public
entertainers if the visit to that State is substantially
supported by public funds as recognized by the competent
authorities of both States.
4.Notwithstanding the provisions of Article 7, where the
activities mentioned in paragraph 1 are provided in a
Contracting State by an enterprise of the other Contracting
State the profits derived from providing these activities by
such an enterprise may be taxed in the first-mentioned State
unless the enterprise is substantially supported from the
public funds as recognized by the competent authorities of
both States in connection with the provisions of such
activities.
ARTICLE 18
TEACHERS
1.An individual who is a resident of a Contracting State
immediately before making a visit to the other Contracting
State, and who, at the invitation of any university, college,
school or other similar educational institution, which is
recognized by the competent authority in that other State,
visits that other State for a period not exceeding two years
solely for the purpose of teaching or research or both at such
educational institution shall be exempt from tax in that other
State on his remuneration for such teaching or research.
2.The provisions of paragraph 1 shall not apply where his visit,
under one or more contracts with the educational institutions
of the other Contracting State, exceeds two years.
ARTICLE 19
PENSIONS
Pensions and other similar remuneration for past employment
derived from a Contracting State shall be taxable only in that
State.
ARTICLE 20
GOVERNMENT SERVICE
1.Remuneration 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.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 State or a
political subdivision or local authority thereof for the
purpose of profits.
ARTICLE 21
STUDENTS AND TRAINEES
1.An individual, who immediately before visiting a Contracting
State, is a resident of the other Contracting State and is
temporarily present in the first-mentioned State for the
primary purpose of:
(a)studying at a university, college or school in the first-
mentioned State, or
(b)securing training required to qualify him to practice a
profession or a professional specialty, shall be exempt from
tax in that State in respect of:
(i)remittances from the other State for the purpose of his
maintenance, study or training; and
(ii)any remuneration for personal services rendered in the
first- mentioned State with a view to supplementing the
resources available to him for such purposes in an amount
not exceeding 3,500 U$ dollars in any calendar year.
2.An individual, who immediately before visiting a Contracting
State, is a resident of the other Contracting State and is
temporarily present in the first-mentioned State for the
primary purpose of study, research or training solely as a
recipient of a grant, allowance or award from the Government
or a scientific, educational, religious or charitable
organization of one of the States, shall be exempt from tax in
the first-mentioned State in respect of:
(a)remittances from the other State for the purpose of his
maintenance, study, research or training; and
(b)the amount of such grant, allowance or award; and
(c)any remuneration for personal services rendered in the first-
mentioned State, provided such services are in connection
with his studies, research or training or are incidental
thereto, in an amount not exceeding 3,500 U$ dollars in any
calendar year.
3.An individual, who immediately before visiting a Contracting
State, is a resident of the other Contracting State and is
temporarily present in the first-mentioned State for a period
not exceeding twelve months solely as an employee of, or under
contract with, the Government or an enterprise of the
second-mentioned State for the purpose of acquiring technical,
professional or business experience shall be exempt from tax
in the first-mentioned State on:
(a)all remittances from the second-mentioned State for the
purposes of his maintenance, education or training; and
(b)any remuneration for personal services rendered in the first-
mentioned State, provided such services are in connection
with his studies, research or training or are incidental
thereto, in an amount not exceeding 10,000 U$ dollars.
ARTICLE 22
OTHER INCOME
Items of income of a resident of a Contracting State, wherever
arising, not dealt with in the foregoing Articles of this
Convention shall be taxable only in that State.
ARTICLE 23
ELIMINATION OF DOUBLE TAXATION
Subject to the tax laws in either Contracting States regarding
the allowance as a credit against tax payable in that State of
tax payable outside that State, tax payable in a Contracting
State in respect of income derived from that State, shall be
allowed as a credit against tax payable in the other Contracting
State in respect of that income.
ARTICLE 24
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.
This provision shall not be construed as obliging the
competent authority of a Contracting State to grant to
nationals of the other Contracting State not resident in the
first-mentioned State those personal allowances, reliefs and
reductions for tax purposes which are by law available only to
nationals of the first-mentioned State or to such other
persons as may be specified therein who are not resident in
that State.
2.The term "nationals" means all individuals possessing the
nationality of either Contracting State and all legal persons,
partnerships, associations and other entities deriving their
status as such from the laws in force in that State.
3.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.
4.The provisions of this Article shall not be construed as
obliging the competent authority of 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 are
granted to the residents of the first-mentioned State.
5.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 that first-mentioned State
are or may be subjected.
6.In this Article the term "taxation" means taxes which are the
subject of this Convention.
ARTICLE 25
MUTUAL AGREEMENT PROCEDURES
1.Where a resident of a Contracting State considers that the
actions of one or both of the competent authorities result or
will result for him in taxation not in accordance with this
Convention, he may, notwithstanding the remedies provided by
the domestic laws of those Contracting States, present his
case to the competent authority of the 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 Convention.
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 Convention.
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
Convention. They may also consult together for the elimination
of double taxation in cases not provided for in this
Convention.
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 Convention and of the domestic laws of the
States concerning taxes covered by this Convention insofar as
the taxation thereunder is in accordance with this Convention.
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 Convention.
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
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 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
ENTRY INTO FORCE
This Convention shall enter into force on the date on which both
Contracting States shall have notified each other of compliance
with their respective legal requirements for entry into force of
this Convention 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 Convention enters into force;
and
(b)in respect of other taxes, for taxable years of the persons
entitled to the benefits of this Convention beginning on or
after the first day of January next following the date on
which the Convention enters into force.
ARTICLE 28
TERMINATION
This Convention shall remain in force until terminated by either
of the Contracting States. Either of the Contracting States may
terminate the Convention at any time after a period of five
years from the date on which the Convention 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
Convention shall cease to have effect:
(a)in respect of taxes withheld at source, for amounts paid or
credited on or after the end of the calendar year in which
the notice is given; and
(b)in respect of other taxes, for taxable years of the persons
entitled to the benefits of the Convention beginning on or
after the first day of January following that in which the
notice is given.
In witness whereof the undersigned, being duly authorized
thereto, have signed this Convention.
DONE in duplicate, at Asuncion, on the 28th day of April, one
thousand nine hundred and ninety four Year of the Christian Era,
each in Chinese, Spanish and English languages, all texts being
equally authentic, except in the case of discrepancy then the
English text shall prevail.