„საქართველოსა და ჩინეთის სახალხო რესპუბლიკის სპეციალურ ადმინისტრაციულ რეგიონ ჰონგ კონგს შორის შემოსავლებსა და კაპიტალზე ორმაგი დაბეგვრის თავიდან აცილებისა და გადასახადების გადაუხდელობის და გადასახადების თავიდან არიდების აღკვეთის შესახებ“

შეთანხმება მიღებულია
ინიცირების თარიღი
12.03.2021
ავტორი
საქართველოს ფინანსთა სამინისტრო
ინიციატორი
საქართველოს მთავრობა
ნომერი
#07-2/29/10
წყარო

📋 განხილვის ეტაპები

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🏛️ კომიტეტები

  • საფინანსო-საბიუჯეტო კომიტეტი წამყვანი კომიტეტი
  • დარგობრივი ეკონომიკისა და ეკონომიკური პოლიტიკის კომიტეტი კომიტეტი რომლის დასკვნაც სავალდებულოა
  • საგარეო ურთიერთობათა კომიტეტი კომიტეტი რომლის დასკვნაც სავალდებულოა

📅 დამატებითი ინფორმაცია

ბიუროზე განხილვის თარიღი 2021-03-15
ბიუროს ნომერი 34

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შეთანხმება
AGREEMENT BETWEEN GEORGIA AND THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S liEPUBLIC OF CHINA FOR THE ELIMINATION OF DOUBLETAXATION WITH RESPECT TO TAXESON INCOME AND ON CAI'ITALAND THE PREVENTION OF T.AX EVASION AND AVOIDANCE Georgia and Tlie Hong Kong Special Administrative Region ofthe People's Republic of China, Desiring to further develop their economic relationship and to enhance their co-operation in tax matters. Intending to conclude aji Agreement for the elimination ofdouble taxation with respect to taxes on income and on capital without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Agreement lor the indirect benefit of residents of third jurisdictions), Have agreed as follows: Article 1 Persons Covered 1. This Agreement shall apply to persons who are residents of one or both of the Contracting Parties. 2. For the purposes of tlie Agreement, income derived by or through an entity or arrangement that is treated as wholly or partly fiscally transparent under the tax law ofeither Contracting Party shall be considered to be income of aresident of aContracting Party but only to the extent that the income is treated, for purposes of taxation by that Party, as tlie mcome of a resident of that Party. 3. The Agreement shall not affect the t£ixation, by aContracting Paity, of its residents except with respect to the benefits granted under pai-agraph 2ofArticle 9and Articles 17, 18, 19, 22, 23,24 and 26. Article 2 Taxes Covered 1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting Party or of its political subdivisions or local authorities, irrespective of the manner in which ihey 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 ofcapital, including taxes on gains from the alienation ofmovable or immovable property, taxes on the total amounts ofwages or salaries paid by enterprises, as well as taxes on capital appreciation. 3. The existing taxes to which the Agreement shall apply are in particular: (a) in the case of the Hong Kong Special Administrative Region, (i) profits lax; (ii) salaries tax; and (iii) property tax; (hereinafter refen'ed to as ''Hong Kong Special Administrative Region tax ), (b) in tlie case of Georgia, (i) profittax; (ii) income tax; and (iii) property tax; (hereinafter referred to as "Georgian tax"). 4 The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or mplace ot, the existing taxes. The competent authorities ofthe Contracting Parties shall notify each other of any significant changes that have been made in their taxation laws. Article 3 Genera! Definitions For the purposes of this Agreement, unless the context otherwise requires: (a) (i) the term "Hong Kong Special Administrative Region" means any place where the tax laws of the Hong Kong Special Administrative Region of the People's Republic of Chinaapply; (ii) the temi ''Georgia" means the territoi^ ofGeorgia as defined by Georgian legislation, including land territory, its subsoil and the air space above it, internal waters and territorial sea. the sea bed, its subsoil and the air space above them, in respect of which Georgia exercises sovereignty, as well as the contiguous zone, the exclusive economic zone and continental shelf adjacent to its teiritorial sea. in respect of which Georgia may exercise its sovereign rights and/or jurisdiction in accordance with the international law; (b) the term "business" includes the performajice of professional services and of other activiiies of an independent character; (c) the term ''company" means any body corporate or any entity that is treated as abody corporate for tax purposes; (d) the term "competent authority" means: (i) in the case of the Hong Kong Special Administrative Region, the Commissioner of Inland Revenue or his authorised representative; (ii) in the case of Georgia, the Ministry of Finance or its authorised representative; (e) the tenns "Contracting Party", "the otlier Contracting Party", "Party" and "the other Party" mean the Hong Kong Special Administrative Region or Georgia, as tiie context requires; (f) the term "enterprise" applies to the carrying on ofany business; (g) the terms '"enterprise of aContracting Party" and "enterprise ofthe other Contracting Party" mean respectively an enterprise carried on by a resident of a Contracting Party and an enterprise can-ied on by aresident of tlie other Contracting Party; (h) the term "international traffic" means any transport by aship or aircraft except when the ship or aircraft is operated solely between places in aContracting Party and the enterprise that operates the ship or aircraft is not an enterprise of that Party; (i) the tenri "national" in relation to Georgia means: (i) any individual possessing tiie citizenship of Georgia; (ii) any legal person or partnership deriving its status as such from the laws in force in Georgia; (j) the term "person" includes anindividual, a company and any other body ofpersons; (k) the terra "recognised pension fund" of a Contracting Party means an entity or arrangement establislied in that Party that is treated as a separate person under the taxation laws of that Party and: (i) that is established and operated exclusively or almost exclusively to adniinister or provide retirement benefits and ancillary or incidental benefits to individuals and thai is regulated as such by thatParty or one of itspolitical subdivisions or local authorities; or (ii) that is established and operated exclusively or almost exclusively to invest funds for the benefit of entities or arrangements refened to insubdivision (i); (I) the term "lax" means the Hong Kong Special Administrative Region tax or Georgian tax, as tlie context requires. 2. As regards the application ofthe Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires orthe competent authorities agree to aditTerent meaning pursuant to the provisions ofArticle 24, have the meaning tliat it has at that lime under the law of that Party for the purposes of the taxes to which the Atireement applies, any meaning under the applicable tax laws ofthat Party prevailing over a meaning given to the temi under other laws of that Party. Article 4 Resident I. For the purposes ofthis Agreement, the term "resident ofa Contracting Party" means: (a) in the case of the Hong Kong Special Administrative Region, (i) any individual who, ordinarily resides in the Hong Kong Special Administrative Region; (ii) any individual who stays in the Hong Kong Special Administrative Region for more than 180 days during a year ofassessment or for more than 300 days in two consecutive years ofassessment one ot which is the relevant year of assessment; <^!660> (iii) a company incorporated in the Hong Koug Special Administrative Region or, if incorporated outside the Hong Kong Special Administrative Region, being normally managed or controlled in the Hong Kong Special Administrative Region; (iv) any other person constituted under the laws of the Hong Kong Special Administrative Region or, if constituted outside the Hong Kong Special Administrative Region, being nomially managed or controlled in the Hong KongSpecial Administrative Region; (b) in the case of Georgia, any person who, under the laws of Georgia, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. This term, however, does not include any person who is liable to tax in Georgia in respect only of income from sources in Georgia or capital situated therein; (c) in the case ofeither Contracting Party, the Government ofthat Party and any political subdivision or local authority thereof as well as a recognised pension fund ofthat Party. 2. Where by reason of the provisions of pai'agraph 1an individual is a resident of both Contracting Parties, then his status shall be determined as follows: (a) he shall be deemed to be aresident only of the Party in which he has apermanent home available to him; ifhe has apermanent home available to him in botli Parties, he shall be deemed to be a resident only ofthe Party with which his personal and economic relations are closer (centre of vital interests); (b) if the Party in which he has his centre of vita! interests cannot be determined, or if he has not apermanent home available to him in either Party, he shall be deemed to be a resident only ofthe Party in which he has an habitual abode; (c) if he has an habitual abode in both Parties or in neither of them, he shall be deemed to be a resident only of the Party in which he has the right of abode (in tlie case of the Hong Kong Special Administrative Region) or of which he is anational (in the case of Georgia); (d) ifhe has the right of abode in tlie Hong Kong Special Administrative Region and is also a national of Georgia, or if he does not have the right ofabode in the Hong Kong Special Administrative Region nor is he anational ofGeorgia, the competent authorities ofthe Contracting Parties shall settle the question by mutual agreement. Where by reason of the provisions of paragraph 1aperson other than an mdividual is a resident ofboth Contracting Parties, the competent authorities ofthe Contractiiig shall endeavour to determine by mutual agreement the Contracting Party of which such person shall be deemed to be aresident for the purposes of the Agreement havmg regard 10 its place of effective management, the place wliere it is incorporated or otiaerwise constituted and any other relevant factors. In the absence of such agreement, sucii person shall not be entitled to any relief or exemption from tax provided by the Agreement except to the extent and in such maxuier as may be agreed upon by the competent authorities of the Contracting Parties. Article 5 Permanent Establishment 1. For the purposes of this Agreement, the term "permanent establisliment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (0 a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. Abuilding site or construction or installation project constitutes apermanent establishment only if it lasts more than six months. 4. Notwithstanding the preceding provisions of this Article, the term ''permanent establishment" shall be deemed not lo 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) (d) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or ofcollecting infoiTnation, for the enterprise, (e) the maintenance ofa fixed place of business solely for the purpose ofcarrying on, for the enterprise, any other activity; (t) the maintenance ofafixed place ofbusiness solely for any combination ofactivities mentioned in subparagraphs (a) to (e), provided that such activity or. in the case of subparagraph (f)^ the overall activity of the fixed place of business, is ofa preparatory orauxiliary character. 5. Notwithstanding the provisions ofparagraphs 1and 2,where a person - other than an agent ofan independent status to whom paragraph 6applies - is acting on behalf ofan enterprise and has, and habitually exercises, in aContracting Parly an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Party in respect ofany activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4which, ifexercised through afixed place of business, would not make this fixed place of business a permanent establishment under the provisions ofthat paragraph. 6. An enterprise shall not be deemed to liave apermanent establisliment in aContracting Party merely because it carries on business in that Parly through abroker, general commission agent or any other agent of an independent status, provided that such pereons are acting in the ordinary course of their business. 7 The fact that acompany which is aresident ofaConU'acting Paity controls or is controlled by a company which is a resident of the other Contracting Party, or which carries on business in that other Party (whetlier through a permanent establishment or otherwise), shall not ofitself constitute either company a permanent establishment ofthe other. Article 6 Income from Immovable Property 1. Income derived by aresident of aContracting Party from immovable property (including income from agriculture or forestry) situated in the other Contracting Party may be taxed in that other Party. 2. The term "immovable property" shall have the meaning which it has imder the law ofthe Contracting Party in which tlie property in question is situated. The term shall many case include property accessory to immovable property, livestock and equipment ^ised m agriculture and forestry, rights to which the provisions of general law respectmg 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 and aircraft shall not be regarded as immovable property. 3. The provisions of paragi-aph 1shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 4. The provisions of paragraphs 1and 3shall also apply to the income from immovable property of an enterprise. Article 7 Business Profits 1. The profits of an enterprise of a Contracting Party siiall be taxable onlyin that Party unless tlie enterprise carries on business in the other Contracting Party through a permanent establisliment situated therein. If the enterprise carries on business as aforesaid, the profits of theenterprise may be taxed in the otherParty butonlyso much of them as is attributable to that permanent establishment. 2. Subject to the provisions of paragraph 3. where anenterprise of a Contracting Party carries on business in the other Contracting Party through a pennanent establishment situated therein, there shall in each Coniracting Party 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 orsimilar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent estabhshment, including executive and general administrative expenses so incurred, whether in the Party in which the permanent establishment is situated or elsewhere. 4. Insofar as it has been customary in a Contracting Party to determine the profits to be attributed to apermanent establishment on the basis ofan apportionment ofthe total profits oftlie enterprise to its various parts, nothing in paragraph 2shall preclude that Contracting Pai-ty from determining the profits lo be taxed by such an apportionment as may be customary; the method ofapportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article. 5. No profits shall be attributed to apermanent establishment by reason ofthe mere purchase by tliat permanent establishment ofgoods or merchandise for tlie enterprise. 6. For the purposes ofthe preceding paragraphs, the profits to be attributed to the permanent establisliment shall be determined by the smne method year by year unless there is good and sufficient reason to the contrary, 7. Wliere profits include items of income which ai'e 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. Article 8 International Shipping and Air Transport 1. Profits of an enterprise ofa Contracting Party from the operation ofships or akcraft m international traffic shall be taxable only in that Party. 2. The provisions of paragraph 1 shall a!so apply to profits from tlieparticipation in a pool, a joint business or an international operating agency. Article 9 Associated Enterprises 1. Where (a) an enterprise of a Contracting Party participates directly or indirectly in the management, control or capital ofan enterprise ofthe other Contracting Party, or (b) tlie same persons participate directly or indirectly in the management, control or capital of an enteiprise of a Contracting Party and an enterprise of the other Contracting Party, and in eitlier 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 enteiprises, then any profits which would, but for those conditions, have accrued to one ofthe enterprises, but, by reason ofthose conditions, have not so accrued, may be included in the profits ofthat enteiprise and taxed accordingly. 2. Where a Contracting Paity includes in the profits ofan enterprise ofthat Party - and taxes accordingly -profits on which an enterprise ofthe other Contracting Party has been charged to tax in that other Paity and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Party if the conditions made between the two enteiprises had been those which would have been made between independent enterprises, then tlrat other Party shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, dxie regard shall be had to the other provisions ofthis Agreement and the competent authorifies ofthe Contracting Parties shall if necessary consult each other. Article 10 Dividends 1 Dividends paid by acompany which is aresident ofaContracting Paily to aresident ofthe other Contracting Party may be taxed inthat other Party. 2. However, such dividends may also be taxed in the Contracting Party ofwhich the company paying the dividends is a resident and according to the laws of tliat Party, but if the beneficial owner ofthe dividends is a resident of the other ConU-acting Pai'ty, the tax so charged shall not exceed 5per cent of the gross amount of the dividends. This paragraph shall not afl^ct the taxation of the company in respect of the profits out of which the dividends are paid. 3. Notwithstanding the provisions of paragraph 2 of this Article, dividends arising in a Contracting Party are exempt fi"om tax in that Party, iftliey are paid to. (a) in the case of tiie Hong Kong Special Administrative Region, (i) the Government of the Hong Kong Special Administrative Region; (ii) the Hong Kong Monetai7 Authority; (iii) the Exchange Fund; (iv) any entity wholly or mainly owned by the Government of the Hong Kong Special Administrative Region as may be agreed from time to time between the competent authorities of the Contracting Parlies; (b) in the case of Georgia, (i) the Government of Georgia or any political subdivision or local authority thereof; (ii) the National Bank of Georgia; (iii) any entity wholly ormainly ov»iied by the Government of Georgia asmay be agreed from time to time between the competent authorities of the Contracting Parties. 4. The term "dividends" as used in this Article means income from shares, mining shares, founders' shares or other rights, noi being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation tieatraent as income from shares by the laws ofthe Party ofwhich the company making the distribution is a resident. 5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting Party, can-ies on business in the other Contracting Party of which the company paying the dividends is a resident through a pennanent establishment situated therein and tlie holding in respect ofwhich the dividends are paid is effectively connected with such permanent eslablislunent. In such case the provisions of Article 7 shall apply. 6. Where acompany which is aresident ofaContracting Party derives profits or income from the other Contracting Party, that other Party may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident ofthat other Party or insofar as the holding in respect ofwhich the dividends are paid is effectively connected with a permanent establisliment situated in that other Paity, nor subject the company's undistributed profits to a lax on the company's undistributed profits, even ifthe dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other Paiiy. 10 Article 11 Interest 1. Interest aiising in a Contracting Party and paid to a resident of the other Contracting Party may be taxed in that other Party. 2. However, such interest may also be taxed in the Contracting Party in which it arises and according to the laws of that Party, but if the beneficial owner of the interest is a resident of the other Contracting Party, the tax so charged shall not exceed 5 per cent of the gross amount of tlie interest. 3. Notwithstajiding the provisions of paragraph 2 of this Article, interest arising in a Contracting Paity is exempt from tax in tliat Paity, if it is paid to: (a) in the case of the Hong Kong Special Administrative Region, (i) the Govermnent of the Hong Kong Special Administrative Region; (ii) the Hong Kong Monetary Authority; (iii) the Exchange Fund; (iv) any entity wholly or mainly owned by the Govermnent of the Hong Kong Special Administrative Region as may be agreed from time to time between the competent authorities of tlie Contracting Parties; (b) in the case of Georgia, (i) the Government of Georgia or any political subdivision or local authority thereof; (ii) the National Bank of Georgia; (iii) any entity wholly or mainly owned by the Government of Georgia as may be agreed from time to time between the competent authorities of the Contracting Parties. 4. 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 inparticular-, 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. 5. The provisions of paragraphs 1,2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting Party, carries onbusiness intlie other Contracting Party in which the interest arises through a pennanent establishment situated therein and 11 the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 6. interest shall be deemed to aiise in a Contracting Party when the payer is a resident oftliat Party. Where, however, the person paying the interest, whether he is a resident of a Contracting Party or not, has in a Contracting Party a permanent establishment in connection with which the indebtedness on wliich the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in tlie Party in which the permanent establishment is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, tlie 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 case, the e.xcess part ofthe payments shall remain taxable according to the lavvs ofeach Contracting Party, due regard being had to the other provisions of this Agreement. Article 12 Royalties 1. Royalties ai'ising in a Contracting Party and beneficially owned by a resident ofthe other Contracting Party may be taxed in that other Parly. 2. However, such royalties may also be taxed in the Contracting Party in wiiich they arise and according to the laws oftliat Party, but ifthe beneficial owner ofthe royalties is aresident of the other Contracting Party, the tax so charged shall not exceed 5 per cent of the gross amount of the royalties. 3. The tei-m "royalties" as used in this Article means payments of any kind received as a consideration for the use of, orthe rigln to use, any copyright ofliterary, artistic orscientific work including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience. 4. The provisions ofparagraphs 1and 2shall not apply ifthe beneficial owner of the royalties, being a resident ofa Contracting Party, carries on business in the other Contracting Party in which the royalties arise through apermanent establishment situated therein and the right or property in respect of which tlie royalties are paid is effectively connected with such permanent establishment. In such case the provisions ofArticle 7sliall apply. 5. Royalties shall be deemed to arise in a Contracting Party when the payer is aresident of that Party. Where, however, the person paying the royalties, whether he is a resident ofa Contracting Party or not, has in a Contracting Party a permanent establishment in connection with which the liability to pay the royalties was incuired, and such royalties are borne by such permanent establishment, tlien such royalties shall be deemed to arise inthe Party in which the permanent establisliment is situated. 12 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 royalties, having regard to the use, right or information for which they are paid, exceeds theamount which would have been agreed upon by the payer and the beneficial owner intheabsence ofsuch 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 Party, due regard being had to the other provisions of this Agreement. Article 13 Capital Gains 1. Gams derived by a resident of a Contracting Party &om the alienation of immovable- property referred to in Article 6 and situated in the other Contracting Party may be taxed in that other Party. 2. Gains from the alienation of movable property forming part of the business property of a permanent establislunent which an enterprise of a Contracting Party has in the other Contracting Party, including such gains from the alienation of such a permanent establishnient (alone or with the whole enterprise), may be taxed in that other Party. 3. Gains that an enterprise ofaContracting Party that operates ships or aircraft in international traffic derives from the alienation of such ships or aircrait, or of movable property pertaining to the operation ofsuch ships or aircraft, shall be taxable only in that Party. 4. Gains derived by a resident of a Contracting Party from the alienation of shares or comparable interests, such as interests in apartnership or trust, may be taxed in the other Contracting Prnty if at any lime during the 365 days preceding the alienation, these shares or comparable interests derived more than 50 per cent of their value directly or indirectly from immovable property, as defined in Ailicle 6, situated in that other Party. However, this paragraph does not apply to gains derived from the alienation ofshares: (a) quoted on such stock exchange as may be agreed between tlie competent autliorities of the Conti-acting Parties; or (b) alienated or exchanged in the framework ofareorganisation ofacompany, amerger, a scission or a similar operation; or (c) in acompany deriving more than 50 per cent of its value from immovable property in which it carries on its business. 5 Gains from the alienation ofany property, other than that referred to in paragraphs 1,2, 3 and 4, shall be taxable only in the Contracting Party of which the alienator is aresident. 13 Article 14 Income fi oni Employment 1. Subject to the provisions of Articles 15, 17, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting Party in respect of an employment shall be taxable only in that Party unless the employment is exercised in the other Contracting Party. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Party. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting Party in respect of an employment exercised in the other Contracting Party shall be taxable only in the first mentioned Party if: (a) the recipient is present in the other Party for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxable period or fiscal year concerned; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Party; and (c) the remuneration is not borne by a pemianent establishment which the employer has in the other Party. 3. Notwithstanding the precedijig provisions of this Article, remuneration derived in respect of an einpioyment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting Party shall be taxable only in that Party. ArHcle 15 Directors' Fees Directors' fees and other similar payments derived by a resident of a Contracting Party in his capacity as a member oftlie boai'd ofdirectors ofa company which is a resident ofthe other Contracting Party may be taxed in that other Party. Article 16 Entertainers and Sportspersons 1. Notwitlistanding the provisions ofArticle 14, income derived by a resident ofa Contracting Party as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or asa sportsperson. from that resident's personal activities as such exercised in the other Contracting Party, may be taxed in that other Party. 2. Where income in respect of personal activities exercised byan entertainer or a sportsperson acting as such accrues not to the entertainer or sportsperson but to another person, that income may, notwithstanding the provisions ofArticle 14, be taxed in the Contracting Party in which the activities of the entertainer or sportsperson are exercised. 14 3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, income derived by an entertainer or a sportsperson shall be exempt from tax in the Contmcting Paily in which the activities of the entertainer or sportsperson are exercised, if such activities are wholly or substantially financed from the public funds of one or both Parties and are carried on under cultural co-operaiion agreement between the Contracting Parties. Article 17 Pensions Pensions and other similar remuneration (including a lump sum payment) aiusing in a Contracting Party and paid to a resident of the other Contracting Party in consideration of past employment or self-employment and social security pensions shall be taxable only inthe first mentioned Party. ArticJe 18 Government Service 1, (a) Salaries, wages and other similar remuneration, paid by a Contracting Party political subdivision or a local authority thereof to an individual in ora respect of services rendered to that Partyor subdivision or authority shall be taxable only in that Party. (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting Party ifthe services are rendered inthat Party and the individual is a resident of that Party who: (i) in the case ofthe Hong Kong Special Administrative Region, has tlie right of abode therein and in the case of Georgia, is a national tliereof; or (ii) did not become a resident ofthat Party solely for the purpose ofrendering the services. 2. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages, pensions (including a lump sum payment), and other similar remuneration in respect of services rendered in comieclion with a business carried on by a Contracting Party or a political subdivision or a local authority thereof Article 19 Students 1. Payments which a student who is or was immediately before visiting a Contacting Party a resident ofthe otlier Contracting Party and who ispresent in the first mentioned Party solely for tlie purpose ofhis education receives for the purpose ofhis maintenance or education shall not be taxed in that Party, provided that such payments ai-ise from sources outside that Party. 15 2. Remuneration which a student who is or was immediately before visiting a Contracting Party a resident of the otlier Contracting Party derives from an employment which he exercises in the first mentioned Party for a period or periods not exceeding one year shall not be taxed in the first mentioned Party, provided that the employment is directly related to his studies can-ied out in the first-mentioned Party. Article 20 Other Incomc 1. Items ofincome of a resident of a Contracting Party, wherever arising, notdealt with inthe foregoing Articles ofthis Agreement shall be taxable only iri that Party. 2. The provisions of paragraph 1 shall not apply to income, other than income from iminovable property as defined in paragraph 2ofArticle 6, ifthe recipient ofsuch income, being a resident ofa Contracting Party, cairies on business in tlie other Contracting Party through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. Article 21 Capital 1. Capital represented by immovable property referred to in Article 6, owned by aresident of aContracting Party and situated in the other Contracting Party, may be taxed in that otlier Party. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting Party has in the other Contracting Party may be taxed in that other Party. 3. Capital represented by ships or aircraft operated in international traffic, and by movable property pertauiing to the operation of such ships or aircraft, shall be taxable only in the Contracting Party in which the place ofeffective management of the enterprise is situated. 4. All other elements of capital of a resident of a Contracting Party shall be taxable only in that Party. Article 22 Elimination of Double Taxation 1. In the case of the Hong Kong Special Administrative Region, double taxation shall be eliminated as follows: Subiect to the provisions of the laws of the Hong Kong Special Adrninistrative Region relating to the allowance ofacredit against Hong Kong Special Administrative Region tax 16 of tax paid in ajurisdiction outside the Hong Kojig Special Administrative Region (which shall not affect the general principle of this Article). Georgian tax paid under the laws of Georgia and in accordance with the provisions of this Agreement (except to the extent that these provisions allow taxation by Georgia solely because the income is also income derived by a resident of Georgia), whetlier directly or by deduction, in respect of income derived by a person who is a resident of the Hong Kong Special Administrative Region from sources in Georgia, shall be allowed as a credit against Hong Kong Special Administrative Region tax payable in respect ofthat income» provided that the credit so allowed does not exceed the amount of Hong Kong Special Administrative Region tax computed in respect of that income in accordance with the tax laws ofthe Hong Kong Special Administrative Region. 2. hi the case of Georgia, double taxation shall be eliininated as follows: Where a resident of Georgia derives income orowns capital which, in accordance with the provisions of this Agreement, may be taxed in the Hong Kong Special Administrative Region. Georgia shall allow: (a) as a deduction from the tax on the income of that resident, an amount equal to tlie income tax paid inthe Hong Kong Special Administrative Region; (b) as a deduction from the tax on the capital ofthat resident, an amount equal to the capital tax paid in the Hong Kong Special Administrative Region. Such deduction in either case shall not, however, exceed the sumsof the tax which would have been accrued according to the rules and rates on this income and capital effective in Georgia. Where in accordance with any provision ofthe Agreement income derived orcapital owned by a resident of Georgia is exempt from tax in Georgia, Georgia may nevertheless, in calculating the amount of laxonthe remaining income or capital of suchresident, take into account the exempted income or capital. Article 23 Non-Discrimination 1. Persons who, in the case of the Hong Kong Special Administrative Region, have the right of abode or are incorporated or otherwise constituted therein, and, inthe case of Georgia, areGeorgian nationals, shall not besubjected in the other Contracting Party to any taxation or any requirement connected therewith, which is oilier or more burdensome than the taxation and comiected requirements to which persons who have the right of abode or are incorporated or otherwise constituted inthat other Party (where thatother Party is the Hong Kong Special Administrative Region) or nationals of that other Party (where that other Party is Georgia) in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwitiistanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting Parties. 17 2. Stateless persons who are residents of a Contracting Party shall not be subjected in either Contracting Part>' to any taxation or ajiy requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to wliich persons who have the right of abode in the Party (where the Party is the Hong Kong Special Administrative Region) or nationals of the Party (where the Party is Georgia) in tlie same circumstances, in particular witli respect to residence, are or may be subjected. 3. The taxation on a pennanent establishment which an enterprise of a Contracting Paity has in the otlier Contracting Party shall not be less favourably levied in that other Party than the taxation levied on enterprises of that otlier Party carrying on the same activities. Tliis provision shall not be construed as obliging a Contracting Party to grantto residents of the other Contracting Party any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting Party to a resident of the other Contracting Party shall, forthe purpose ofdetermining the taxable profits ofsuch enterprise, be deductible under the same conditions as if they had been paidto a resident of the first mentioned Party. Similai'ly, any debts of an enterprise of a Contracting Party to a resident of the other Contracting Party shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the sameconditions as if tliey had been contracted to a resident of thefirstmentioned Party. 5. Enterprises of a Contracting Pany. the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting Party, shall not be subjected in the first mentioned Party 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 the first mentioned Party are or may be subjected. 6. The provisions of this Article shall apply to the taxes covered by Article 2. Article 24 Mutual Agreement Procedure 1. Where a person considers that the actions ofone or both ofthe Contracting Parties result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the internal laws ofthose Parties, present his case to the competent authoi iiy ofeither Contracting Party. The case must be presented within tliree years from the first notification of the action resulting in taxation not in accordance with the provisions of the .'Agreement. 18 2. The competent authority shall endeavour, ifthe objection appears to it to be justified and if it is not itselt able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority ofthe other Contracting Party, witli aview to the avoidance of taxation which is not in accordance with the Agreement Any agreement reached shall be implemented notwithstanding any time limits in tlie internal laws of the Contracting Parties. 3. The competent authorities ofthe Contracting Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising as lo the interpretation or application of the Agreement. They may also consuh together for the elimination of double taxationin cases not provided for in the Agreement. 4. The competent authorities ot the Contracting Parlies may communicate with each other directly, including througli a joint commission consisting of themselves or their representatives, lor the purpose of reaching an agreement in tire sense of the preceding pai'agraphs. Article 25 Exchange of InformatioQ 1. fhe competent authorities of the Contracting Parties shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the adminisu-ation or enforcement of the internal laws of the Contracting Parties concerning taxes covered by the Agreement, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1. 2. Any information received under pai'agraph 1 by a Contracting Party shall be treated as secret in the same manner as information obtained under the internal lawsof tliat Party and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect oT tlie determination of appeals in relation to the taxes referred to in paragraph 1, orthe oversight of the above. Such persons or authorities shall use the information only for such purposes. Theymay disclose the information in public courtproceedings or injudicial decisions. Information shall not be disclosed to any third jurisdiction for aiiy purpose. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting Party the obligation: (a) to carry out administrative measures at vaiiance with the laws and administrative practice of that or of the other Contracting Pa:*ty; (b) to supply information which is notobtainable under tlie laws or in the nonnal course of the administration of that or of the other Contracting Party; 19 (c) to supply infonnation 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 (ordrepublic). 4. Ifinformation is requested by a Contracting Part)' inaccordance with this Article, the other Contracting Party shall use its information gathering measures to obtain the requested information, even though that other Party may not need such information for its own tax puiposes. The obligation contaiiied in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting Party to decline to supply information solely because there is no tax interest in such information to tliat Party. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting Party to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person, Article 26 Members of Government Missions Nothing in this Agreement shall affect the fiscal privileges of members of government missions, including consulai- posts, under the general rules of international law or under the provisions of special agreements. Article 27 Entitlement to Benefits j. Notwithstanding the other provisions of this Agreement, a benefit under the Agreement shall not be granted in respect of an item ofincome or capital if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining tliat benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circiUTistances would be in accordance with the object and purpose of the relevant provisions of the Agreement. 2. Nothing in the Agreement shall prejudice the right of each Contracting Party to apply its internal laws mid measures concerning tax evasion or avoidance, whether or not described as such. Articlc 28 Entry ink) Force 1. This Agreement shall enter into force on the first day of the month following the dale of the receipt, through official channels, of the later v^itten notification indicating the completion ofthe internal procedures necessary for the entiy mto force of this Agreement. 20 2. The Agreement shall have effect: (a) in the Hong Kong Special Administrative Region, in respect of Hong Kong Special Administrative Region tax, for any year of assessment beginning on or after 1 April of the calendar year next following the year in which the Agreement enters into force; (b) in Georgia, (i) in respect of taxes witlilield at source, to income derived onor after 1January of the calendar year next following the year in which the Agreement enters into force; in respect ofotlier taxes on income and on capital chargeable for any taxable year beginning on or after 1 January of the calendar year next following the year in which the Agreement enters into force. Article 29 Termination This Agreement shall remain in force until terminated by a Contracting Party. Either Conti-acting Party may, after the expiration of a period of five years from the date of its entry into force, terminate the Agreement by giving written notice of termination to the other Contracting Party through the official channels at least six months before tlie end of any calendar year. In such event, the Agreement shall cease to have effect: (a) in the Hong Kong Special Administrative Region, in respect of Hong Kong Special Administrative Region tax, for any year of assessment beginning onorafter 1 April of the calendar year nextfollowing the year in which the notice is given; (b) in Georgia, (i) in respect oftaxes withheld at source, to income derived on or after 1January of the calendar year next following the year in which the notice is given; (ii) in respect of other taxes onincome and on capital chargeable for any taxable year beginning onor after 1 January of the calendar year next following the year in which the notice is given. 21 IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Agreement. DONE in duplicate at Georgia this 'U'day of Kong this > day of and ai Hong 20r in the (ieorgian. Chinese and English languages, all texts being equally authentic. In case of divcrgcnce of interpreiuiion. the English text shall prevail. For Georgia For the Hong Kong Special Administrative Region of the People's Republic of China PROTOCOL TO THE AGREEMENT BETWEEN GEORGIA ANi) THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPl.E'S KEPL BLIC OF CHINA FOR THE FLIMINATION OF DOl BLF TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPI l AL AND THE PREVENTION OF TAX EVASION AND AVOH)ANCE At the time of signing of the Agreement between Georgia and the Hong Kong Special Adniinisirative Region of the People'.s Republic of China for the Elimination of Double taxation with respect to Taxes on Income and on Capital and the Prevention of Lax Evasion and Avoidance (the '"Agreement'), the Contracting Parties have agreed that the following provisions shall form an integral pait of the Agreement: \. For the purposes of the Agreement, it is understood that in the case of Georgia, the terms '"political subdivisions" and "'local authorities'' mean "adminislrative-territorial units" and "local self-governing authorities''. respectively 2. \V iih rcterence to Article I ol the Agreement, it is understood that paragraph 2 ofthat Article onls' applies where the student exercises the employment in the Contracting Party during the period of his studies in that Partv. IN WI TNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol. DONE in duplicate at Georgia this/^''^day of 202C and at Hong Kong this day of 206v in the Georgian, Chinese and English languages, all texts being equally authentic. In case ofdi\ergence of interpretation, the English text shall prevail. For the Hong Kong Special For Georala Administrative Region of the Peoplf's Republic of China 23 « » S S M m II ) . 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