China (tax/treaty)

Taxes Covered 1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. 3. The existing taxes to which this Agreement shall apply are in particular: in the case of the Kingdom of Saudi Arabia: o the Zakat; o the income tax including the natural gas investment tax; (hereinafter referred to as "Saudi tax"). in the case of the People's Republic of China: o the individual income tax; o the income tax on enterprises with foreign investment and foreign enterprises; (hereinafter referred to as " Chinese tax"). 4. This Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement 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.