The double taxation agreement between China and Austria was recently amended. You find the most important changes here.
The double taxation agreement between China and Austria was recently amended. The most important changes are:
- Reduction of the withholding tax rate for dividends to certain beneficiary shareholders (>25% participation or directly or indirectly participating government entities) to 5%.
- Introduction of exemptions for withholding taxes on interest payments made to government entities or for interest related to the sale of equipment, goods, or services on credit.
- Adjustments regarding the determination of the source state of license fees.
- The permanent establishment period for construction work has been extended from six to twelve months and also includes supervisory activities related to construction work
- At the same time, it was clarified that services in connection with construction work do not qualify as a service permanent establishment
The withholding tax rate for dividends, interest, and license fees remains unchanged at 10%.