On 16 October 2015, Germany's Bundesrat (upper house of parliament) approved the pending income and capital tax treaty with China. The treaty, signed 28 March 2014, will replace the 1985 income and capital tax treaty between the two countries that currently applies.
Taxes Covered
The treaty covers Chinese individual income tax an enterprise income tax. It covers German income tax, corporation tax, trade tax and capital tax.
Service PE
The treaty includes the provision that a permanent e…