Announcement on Issues Relevant to the “Beneficial Owner” in Tax Agreements
关于税收协定中“受益所有人”有关问题的公告
Substantive business activities required for beneficial owner status
(Issued by the State Administration of Taxation on February 3, 2018.)
(国家税务总局于二零一八年二月三日发布。)
SAT Announcement [2018] No.9
国家税务总局公告2018年第9号
With a view to implementing the agreements for the avoidance of double taxation executed with foreign countries by the government of the People's Republic of China (Tax Agreements), we hereby notify you on issues relevant to determination of the status of beneficial owner in the provisions of Tax Agreements on dividends, interest and royalties as follows:
为执行中华人民共和国政府对外签署的避免双重征税协定（简称“税收协定”），现就税收协定股息、利息、特许权使用费条款中“受益所有人”身份判定有关问题公告如下：
1. The term “beneficial owner” means a party that owns and has control over income or the rights or property on the basis of which income is generated.
一、“受益所有人”是指对所得或所得据以产生的权利或财产具有所有权和支配权的人。
2. When determining status as a beneficial owner of a resident of the other contracting state who wishes to benefit from the treatment under a Tax Agreement (the Applicant), a comprehensive analysis shall be conducted based on the factors set forth in this Article and in light of the actual circumstances of the specific case. Generally speaking, the following factors are unfavorable to a determination of an Applicant's status as a beneficial owner:
二、判定需要享受税收协定待遇的缔约对方居民（以下简称“申请人”）“受益所有人”身份时，应根据本条所列因素，结合具体案例的实际情况进行综合分析。一般来说，下列因素不利于对申请人“受益所有人”身份的判定：
(1) The Applicant is under obligation to pay at least 50% of the income to a resident of a third country (region) within 12 months of receipt of the income; “obligation” includes a contractually specified obligation and circumstances under which there is no contractually specified obligation but the fact of payment has arisen.
（一）申请人有义务在收到所得的12个月内将所得的50%以上支付给第三国（地区）居民，“有义务”包括约定义务和虽未约定义务但已形成支付事实的情形。
(2) The business activities engaged in by the Applicant do not constitute substantive business activities. Substantive business activities include substantive manufacturing, marketing and management activities. Whether the business activities engaged in by the Applicant are substantive shall be determined based on the functions actually performed and the risks borne thereby.
（二）申请人从事的经营活动不构成实质性经营活动。实质性经营活动包括具有实质性的制造、经销、管理等活动。申请人从事的经营活动是否具有实质性，应根据其实际履行的功能及承担的风险进行判定。
The substantive investment holding management activities engaged in by an Applicant may constitute substantive business activities. Where an Applicant engages in investment holding management activities that do not constitute substantive business activities while simultaneously engaging in other business activities, if the other business activities are not sufficiently prominent, substantive business activities are not constituted.
申请人从事的具有实质性的投资控股管理活动，可以构成实质性经营活动；申请人从事不构成实质性经营活动的投资控股管理活动，同时从事其他经营活动的，如果其他经营活动不够显著，不构成实质性经营活动。
(3) The other contracting state (region) does not levy or exempts tax on the relevant income or, although it does levy tax, the actual tax rate is extremely low.
（三）缔约对方国家（地区）对有关所得不征税或免税，或征税但实际税率极低。
(4) In addition to the loan contract on the basis of which interest is generated and paid, there exists another loan contract or deposit contract between the creditor and a third party that is similar in amount, interest rate, time of execution, etc.
（四）在利息据以产生和支付的贷款合同之外，存在债权人与第三人之间在数额、利率和签订时间等方面相近的其他贷款或存款合同。
(5) in addition to the contract for the assignment of the right to use such as a copyright, patent or technology contract on the basis of which royalties are generated and paid, there exists another contract concerning the assignment of the right to use, or of the ownership of, the relevant copyright, patent, technology, etc. between the Applicant and a third party.
（五）在特许权使用费据以产生和支付的版权、专利、技术等使用权转让合同之外，存在申请人与第三人之间在有关版权、专利、技术等的使用权或所有权方面的转让合同。
3. If the income derived in China by an Applicant is dividends and although the Applicant does not satisfy the conditions for being a beneficial owner, a party that directly or indirectly holds 100% of the shares of the Applicant satisfies the conditions for being a beneficial owner, and either of the circumstances set forth below applies, the Applicant shall be deemed as having the status of beneficial owner:
三、申请人从中国取得的所得为股息时，申请人虽不符合“受益所有人”条件，但直接或间接持有申请人100%股份的人符合“受益所有人”条件，并且属于以下两种情形之一的，应认为申请人具有“受益所有人”身份：
(1) the aforementioned party that satisfies the conditions for being a beneficial owner is a resident of the country (region) where the Applicant is resident; or
（一）上述符合“受益所有人”条件的人为申请人所属居民国（地区）居民；
(2) although the aforementioned party that satisfies the conditions for being a beneficial owner is not a resident of the country (region) where the Applicant is resident, both such party and the intermediate layer under an indirect shareholding situation are parties that satisfy the conditions.
（二）上述符合“受益所有人”条件的人虽不为申请人所属居民国（地区）居民，但该人和间接持有股份情形下的中间层均为符合条件的人。
The phrase “satisfies the conditions for being a beneficial owner” means that, after a comprehensive analysis, it may be determined pursuant to Article 2 hereof that the party in question has the status of beneficial owner.
“符合'受益所有人'条件”是指根据本公告第二条的规定，综合分析后可以判定具有“受益所有人”身份。
The term “party that satisfies the conditions” means that, when the income derived in China by the party in question is dividends, the treatment available under the Tax Agreement executed between China and the country (region) where such party is resident is identical or more favorable than that available to the Applicant.
“符合条件的人”是指该人从中国取得的所得为股息时根据中国与其所属居民国（地区）签署的税收协定可享受的税收协定待遇和申请人可享受的税收协定待遇相同或更为优惠。
4. When the income derived in China by an Applicant as set forth below is dividends, the comprehensive analysis may be conducted without consideration of the factors set forth in Article 2 hereof and a direct determination of the Applicant's status as a beneficial owner may be made:
四、下列申请人从中国取得的所得为股息时，可不根据本公告第二条规定的因素进行综合分析，直接判定申请人具有“受益所有人”身份：
(1) the government of the other contracting state;
（一）缔约对方政府；
(2) a company that is a resident of, and listed in, the other contracting state;
（二）缔约对方居民且在缔约对方上市的公司；
(3) an individual who is a resident of the other contracting state; or
（三）缔约对方居民个人；
(4) an Applicant, 100% of whose shares are directly or indirectly held by one or more of the parties specified in items (1) to (3) and the intermediate layer under the indirect shareholding situation is a Chinese resident or a resident of the other contracting state.
（四）申请人被第（一）至（三）项中的一人或多人直接或间接持有100%股份，且间接持有股份情形下的中间层为中国居民或缔约对方居民。
5. The shareholding percentage required by Articles 3 and 4 hereof shall have been maintained at all times for 12 months in succession before the dividends were obtained.
五、本公告第三条、第四条要求的持股比例应当在取得股息前连续12个月以内任何时候均达到规定比例。
6. Agents, designated payees or other such parties (hereinafter collectively referred to as “Agents”) are not beneficial owners. The receipt of income by an Applicant through an Agent shall not affect the determination of the Applicant's status as a beneficial owner, regardless of whether the Agent is a resident of the other contracting state or not.
六、代理人或指定收款人等(以下统称“代理人”)不属于“受益所有人”。申请人通过代理人代为收取所得的，无论代理人是否属于缔约对方居民，都不应据此影响对申请人“受益所有人”身份的判定。
The dividends derived by a shareholder based on the shares held thereby, the interest derived by a creditor based on the claim held thereby and the royalties derived by a licensor based on the grant of the license are not “income received through an Agent” for the purposes of this Article.
股东基于持有股份取得股息，债权人基于持有债权取得利息，特许权授予人基于授予特许权取得特许权使用费，不属于本条所称的“代为收取所得”。
7. When determining status as a beneficial owner based on the factors set forth in Article 2 hereof, different types of income may be differentiated through a comprehensive analysis of documentation and information such as the articles of association of the company, the company's financial statements, fund flow records, board meeting minutes, board resolutions, capacity of human and physical resources, relevant expenses and expenditures, bearing of functions and risks, loan contracts, proprietary right licensing and assignment contracts, patent registration certificates and copyright title certificates. To determine whether income is received through an Agent as specified in Article 6 hereof, the analysis shall be conducted on the basis of documentation such as the agency contract or designated payment receipt contract.
七、根据本公告第二条规定的各项因素判定“受益所有人”身份时，可区分不同所得类型通过公司章程、公司财务报表、资金流向记录、董事会会议记录、董事会决议、人力和物力配备情况、相关费用支出、职能和风险承担情况、贷款合同、特许权使用合同或转让合同、专利注册证书、版权所属证明等资料进行综合分析；判断是否为本公告第六条规定的“代理人代为收取所得”情形时，应根据代理合同或指定收款合同等资料进行分析。
8. If an Applicant needs to prove that it has the status of beneficial owner, it shall submit the relevant supporting documentation in accordance with Article 7 of the State Administration of Taxation, Announcement on the Issuance of the Measures for the Administration of the Treatment for Which Non-tax-residents are Eligible Under Tax Agreements (Announcement of the State Administration of Taxation No.60 of 2015). If the Applicant has the status of beneficial owner pursuant to Article 3 hereof, it shall, in addition to providing its tax residency certificate, provide the tax residency certificate issued by the competent tax authority of the country (region) where the party that satisfies the conditions for being a beneficial owner is resident and of the country (region) where the party that satisfies the conditions is resident. If the Applicant has the status of beneficial owner pursuant to item (4) of Article 4 hereof, it shall, in addition to providing its tax residency certificate, provide the tax residency certificate issued by the competent tax authority of the country (region) where the party directly or indirectly holding 100% of the shares of the Applicant is resident and of the country (region) where the intermediate layer is resident. A tax residency certificate shall evidence tax-resident status for the year in which the income is derived or the preceding year thereof.
八、申请人需要证明具有“受益所有人”身份的，应将相关证明资料按照《国家税务总局关于发布〈非居民纳税人享受税收协定待遇管理办法〉的公告》（国家税务总局公告2015年第60号）第七条的规定报送。其中，申请人根据本公告第三条规定具有“受益所有人”身份的，除提供申请人的税收居民身份证明外，还应提供符合“受益所有人”条件的人和符合条件的人所属居民国（地区）税务主管当局为该人开具的税收居民身份证明；申请人根据本公告第四条第（四）项规定具有“受益所有人”身份的，除提供申请人的税收居民身份证明外，还应提供直接或间接持有申请人100%股份的人和中间层所属居民国（地区）税务主管当局为该人和中间层开具的税收居民身份证明；税收居民身份证明均应证明取得所得的当年度或上一年度的税收居民身份。
9. Where, in the course of the subsequent administration by the competent tax authority, an Applicant itself pays back taxes because it does not have the status of beneficial owner, the competent tax authority shall submit the case, level by level, to the provincial tax authority for the record. Where the competent tax authority deems that the status of the Applicant as beneficial owner ought to be denied, it shall do so after approval by the provincial tax authority.
九、在主管税务机关后续管理中，申请人因不具有“受益所有人”身份而自行补缴税款的，主管税务机关应将相关案件层报省税务机关备案；主管税务机关认为应该否定申请人“受益所有人”身份的，应报经省税务机关同意后执行。
10. If an Applicant has the status of beneficial owner but the competent tax authority discovers that the principal purpose test provision of the Tax Agreement or the general anti-tax avoidance rules of domestic tax laws are applicable, the relevant general anti-tax avoidance provisions shall apply.
十、申请人虽具有“受益所有人”身份，但主管税务机关发现需要适用税收协定主要目的测试条款或国内税收法律规定的一般反避税规则的，适用一般反避税相关规定。
11. The determination of status as a beneficial owner under the provisions on dividends, interest and royalties of the Arrangement Between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Arrangement Between the Mainland of China and the Macao Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income shall be handled in accordance herewith.
十一、《内地和香港特别行政区关于对所得避免双重征税和防止偷漏税的安排》和《内地和澳门特别行政区关于对所得避免双重征税和防止偷漏税的安排》股息、利息、特许权使用费条款中“受益所有人”身份判定按照本公告执行。
The submission of tax residency certificates by Hong Kong residents shall be handled in accordance with the State Administration of Taxation, Announcement on Issues Relevant to the Use of Hong Kong Resident Identity Cards in Mainland China (Announcement of the State Administration of Taxation No.35 of 2016).
香港居民提供税收居民身份证明按照《国家税务总局关于在内地使用香港居民身份证明有关问题的公告》（国家税务总局公告2016年第35号）的规定执行。
12. This Announcement shall apply to matters on the enjoyment of Tax Agreement treatment in connection with tax obligations and withholding obligations arising on and after April 1, 2018. The State Administration of Taxation, Circular on How to Interpret and Recognize the “Beneficial Owner” in Tax Agreements (Guo Shui Han [2009] No.601) and the State Administration of Taxation, Announcement on the Recognition of the “Beneficial Owner” in Tax Agreements (Announcement of the State Administration of Taxation No.30 of 2012) shall be repealed simultaneously.
十二、本公告适用于2018年4月1日及以后发生纳税义务或扣缴义务需要享受税收协定待遇的事项。《国家税务总局关于如何理解和认定税收协定中“受益所有人”的通知》（国税函〔2009〕601号）、《国家税务总局关于认定税收协定中“受益所有人”的公告》（国家税务总局公告2012年第30号）同时废止。
clp reference:3300/18.02.03 issued:2018-02-03
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