China (tax/treaty)

Methods for Elimination of Double Taxation 1. Double taxation shall be eliminated as follows: in the case of the Kingdom of Saudi Arabia: where a resident of the Kingdom of Saudi Arabia derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in China, the Kingdom of Saudi Arabia shall deduct the amount paid in China, as a tax specified in Article 2 of this Agreement, against the tax levied in the Kingdom of Saudi Arabia. The amount of such deduction, however, shall not exceed the amount of the tax on that income or capital computed in accordance with the taxation laws and regulations of the Kingdom of Saudi Arabia. in the case of China: where a resident of China derives income from the Kingdom of Saudi Arabia, the amount of tax on that income payable in Kingdom of Saudi Arabia in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of the credit, however, shall not exceed the amount of the Chinese tax on that income computed in accordance with the taxation laws and regulations of China. 2. The tax which was exempted or reduced under the legal provisions for encouragement of investment in either Contracting State shall be deemed to have been paid for application of this Article. The provisions of this paragraph shall be effective for 10 years starting from the year of the entry into force of this Agreement.