On October 13, 2014, the Chinese and Russian governments signed a new Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income (the “new DTA”) and its protocols (for further reference, see our legal flash of October 2014). 

On May 8, 2015, a further protocol was signed, introducing a new article stipulating that interest arising in a contracting state and paid to a resident of the other contracting state is only taxable in that other state.

Announcement [2016] No. 48 determines that both contracting states have completed the internal legal procedures necessary for the entry into force of the new DTA and its protocols, which entered into force on April 9, 2016, and will be applicable to income derived in taxable years from January 1, 2017.