Laws of the People's Republic of China

Circular of the State Administration of Taxation concerning Printing and Distributing the Protocol to the Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius on the Avoidance of Double Taxation and Getting Prepared for Its Implementation

Guo Shui Han [2006] No. 833

The bureaus of state taxes and those of local taxes of each province, autonomous region, municipality directly under the Central Government, and city specially designated in the state plan:

The Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in respect of Taxes on Income between the Chinese Government and government of the Republic of Mauritius was formally subscribed by Xie Xuren, Director of the State Administration of Taxation of China, and Mr. Paul R. Lit Fong Chong Leung, Ambassador of Mauritius to China, in Beijing on September 5, 2006. After both contracting states have completed their respective legal procedures the Agreement shall be effective. The text of the Agreement is hereby printed and distributed to you. Please prepare well before the carrying out of the Agreement.

Appendix: The Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

State Administration of Taxation

September 8th, 2006 Appendix: The Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius concerning the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in respect of Taxes on Income

The Government of the People's Republic of China and the Government of the Republic of Mauritius, desiring to conclude a protocol to make revision on the Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in respect of Taxes on Income (hereinafter referred to as "Agreement") concluded in Beijing on August 1, 1994, have agreed as follows:

Article 1 .

1.

The following paragraph shall be added in Article 13 in the Agreement as Paragraph 5:

"5. The gains reaped by a resident of a contracting party out of transferring stocks, any other kind of interest in companies or other rights held in a resident company of the other contracting party may be taxed in that other contracting state if the person has once directly or indirectly participated in the ownership of at least 25% of the capital of this company within 12 months."

2.

Paragraph 5 in Article 13 of the original Agreement shall be canceled and taken place by the following Paragraph:

"6. The gains reaped out of the alienation of the properties except those as specified in paragraphs from 1 to 5 shall only be taxed in the contracting state of which the alienator is a resident."

Article 2 .

Article 26 of the original Agreement shall be canceled and taken place by the following Article:

"Article 26 Exchange of Information

1.

The competent authorities of the contracting states shall exchange the intelligence which may be foreseen to be related with the carrying out of the provisions of this Agreement or of the domestic laws concerning various kinds of taxes levied by the contracting states or their local authorities, insofar as the taxation thereunder is not contrary to this Agreement. The exchange of intelligence shall not be restricted by Article 1 and Article 2 .

2.

Any intelligence received by a contracting state in accordance with Paragraph 1 shall be treated as secret in the same manner as intelligence obtained according to the domestic laws of that contracting state and shall be informed only to the persons or authorities (including courts and administrative departments) and their supervision departments concerning the assessment, collection, enforcement, prosecution or appeal judgment of the taxation categories as indicated in Paragraph 1. Such persons or authorities shall use the intelligence only as purposes like these, but may disclose the intelligence in public court proceedings or in court judgments.

3.

The provisions of Paragraph 1 and Paragraph 2 shall be understood as imposing the following obligations on a contracting state on no condition:

(1)

Administrative measures in violation of the laws and administrative practices of that or of the other contracting state should be taken;

(2)

Providing intelligence that is not available according to the laws or through the normal administrative courses of that or of the other contracting state;

(3)

Providing intelligence that would disclose any trade, business, industrial, commercial, or professional secret or trade process, or any intelligence the disclosure of which would in violation of public policy (public order).

4.

Where a contracting state requests for intelligence subject to the present Article, the other contracting party shall obtain the intelligence requested in the manner of information acquisition, even the other contracting party may do not need such intelligence for the purposes of taxation . The obligation defined in the front sentence shall be restricted by Paragraph 3, but the restriction shall be understood on no condition as allowing a contracting state to refuse to provide such intelligence because it has no domestic benefits.

5.

The provision of Paragraph 3 shall be understood on no condition as allowing a contracting state to refuse the provision of such intelligence only because the intelligence is possessed by any bank, any other financial institution, designated representative, agent or trustee, or because the intelligence in respect of people's ownership equity."

Article 3 .

The governments of the contracting states shall confirm the completion of their respective legal procedures which is indispensable to entry into force of this Protocol through diplomatic exchange of letters. This Protocol shall go into effect as of the date a later letter is sent, and shall apply to:

(1)

As regards China, the gains derived during the taxable years beginning on or after the first day of January of the next year following the year in which the present Arrangement goes into effect;

(2)

As regards Mauritius, the gains derived during the taxable years beginning on or after the first day of July of the next year following the year in which the present Arrangement goes into effect.

Article 4 .

This Protocol shall be valid permanently with the Agreement.

In witness whereof the undersigned, the following representatives, as officially authorized, have signed on this Protocol.

This Protocol was signed in Beijing on September 5, 2006. It is in duplicate and is written in Chinese and English. In case any divergence as to the interpretation of the text arises, the English version shall prevail.

Government of People's Republic of China Government of the (Representative)

Xie Xuren

Republic of Mauritius

(Representative)

Mr. Paul R. Lit Fong Chong Leung