(“Bulletin [2014] No. 16”) (国家税务总 局关于《中华人民共和国政府和厄瓜多尔共和国政府对所得避免双重征税和防止偷漏税的协定》 及议定书生效执行的公告), issued by SAT

SAT’s Announcement No. 16 [2014] publishes the double taxation agreement (“DTA”) between China and Ecuador. On February 5, 2014, and March 15, 2014, the countries respectively confirmed the completion of the legal procedures for the Agreement and the Protocol.

Under the DTA, withholding tax rates for dividends, interest, and royalties are 5%, 10% and 10%, respectively. Capital gains for the transfer of shares in entities of the other Contracting State can only be subject to tax in the State of residence of the transferor, except for entities deriving more than 50% of their value, directly or indirectly, from immovable property located in the other Contracting State. Article 23 includes a limitation of benefits clause.

Under article 28 of the Agreement, the Agreement and the Protocol were effective from March 6, 2014, and will apply to all income obtained after January 1, 2015.

Date of issue: March 10, 2014. Date of effectiveness: March 10, 2014