DoubleTaxationPakistan – China tax treaty: residence, 183 days, rates
Agreement between the Government of the People's Republic of China and the Government of the Islamic Republic of Pakistan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (1989) — signed on 15 November 1989
- Signed: 15/11/1989
- In force since: 27/12/1989
- Official text
If both countries treat you as resident
- Residence article of the 1989 Agreement. Its text was not read for this package; the steps below follow the standard OECD order (permanent home, centre of vital interests, habitual abode, nationality, mutual agreement) and must be checked against the FBR or STA text. Art. 4 Pakistan–China Agreement (1989) — residence
- Pakistan lists as covered tax agreements, among others: China — Agreement signed 15-11-1989, in force 27-12-1989, with protocols signed 19-06-2000 (in force 11-10-2000), 17-04-2007 (in force 17-04-2007) and 08-12-2016 (in force 24-04-2017); Japan — Convention signed 23-01-2008, in force 09-11-2008; Bangladesh — Convention signed 15-10-1981, in force 8/7/1987. India is not listed. Pakistan — MLI position at deposit, list of Covered Tax Agreements (OECD)
- FBR lists the treaties with Bangladesh (original only), China (original and «as modified by MLI», effective 1 September 2022) and Japan (original and «as modified by MLI», effective 1 April 2021); India is not listed. FBR — Bilateral full scope treaties
- Amends the 1989 Agreement and the Second Protocol (2007) on interest paid to the Industrial and Commercial Bank of China and the Silk Road Fund on loans to CPEC energy projects; enters into force on receipt of the later notification. It does not deal with the residence of individuals. Third Protocol to the Pakistan–China Agreement (Islamabad, 8 December 2016)
- Standard wording: if the centre of vital interests cannot be determined, or if the individual has no permanent home available in either State, he is deemed a resident of the State in which he has an habitual abode. Art. 4 Pakistan–China Agreement (1989) — habitual abode
- Centre of vital interests: the State with which your personal and economic relations are closer. Art. 4 Pakistan–China Agreement (1989)
- Standard wording: habitual abode in both States or in neither — the State of nationality; national of both or of neither — mutual agreement of the competent authorities. Art. 4 Pakistan–China Agreement (1989) — nationality and mutual agreement
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the calendar year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 16(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 183 days in the calendar year. | Art. 7, Art. 15 |
| Pension | Only the country of residence. | Art. 19 |
| State pension (social security) | Only the source country (for pensions, the paying country). | Art. 19 |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6 |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 10(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. | Art. 11(2) |
| Royalties (copyright, licences) | Source country: at most 12.5%; the country of residence relieves double taxation. | Art. 12(2) |
| Technical, consulting, management services | Source country: at most 12.5%; the country of residence relieves double taxation. | Art. 13(2)–(3) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 14 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 23(3) |
How double taxation is relieved
- China: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 24(2)
- Pakistan: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 24(1)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.