DT4904 - Double Taxation Relief Manual: Guidance by country: China: Residence of companies

Article 4 of the Agreement contains rules for determining the residence of companies for the purposes of the Agreement. These generally follow the pattern of the OECD Model (see INTM152040). Therefore, where a company is a resident of both countries by virtue of Article 4(1), it is to be treated for the purposes of the Agreement as a resident of the country in which the place of effective management of its business is situated. But, in a departure from the usual pattern, where the place of effective management is in one country and the place of its head office is in the other country, the two countries have to settle the country of residence by mutual agreement (Article 4(3)).

Any such cases should be referred to Business International.