2. According to Article 9 of the Agreement, dividends paid by companies resident in one Contracting State to residents in another Contracting State can be taxed in that other Contracting State. However, these dividends may also be taxed in a Contracting State of which the company paying the dividends is a resident and according to the laws of that Contracting State. However, if the payee is the beneficial owner of the dividend, the tax collected should not exceed 10% of the total dividend. The provisions of this paragraph shall not affect the corporate profits tax levied on the company's profits before dividends are paid. 3. The term "dividend" in this article refers to the income obtained from shares or the right to share profits in non-creditor relations, as well as the income obtained from the rights of other companies taxed as shares according to the tax law of the Contracting State in which the company distributing profits is a resident. 4. If the beneficial owner of dividends is a resident of a Contracting State, and the company paying dividends is a resident of the other Contracting State, and conducts business through a permanent establishment located in the other Contracting State, or engages in independent personal services through a fixed base located in the other Contracting State, the provisions of paragraphs 1 and 2 shall not apply to the dividend-paying shares or other corporate rights actually related to the permanent establishment or fixed base. In this case, the provisions of Article 7 or Article 13 shall apply as appropriate. 5. Where a company which is a resident of a Contracting State obtains profits or income from the other Contracting State, the other Contracting State shall not tax the dividends paid by the company. Unless the dividends paid to the residents of the other Contracting State or the shares or other corporate rights that pay dividends are actually related to the permanent establishment or fixed base located in the other Contracting State. Even if the dividends or undistributed profits paid are all or part of the profits generated in the other Contracting State, the undistributed profits of the company shall not be taxed in the other Contracting State.
3. According to the Notice on Several Policy Issues concerning Individual Income Tax (Caishuizi [1994] No.020), the following income is temporarily exempted from individual income tax: (8) dividends and bonus income obtained by foreign individuals from foreign-invested enterprises.
4. The individual who receives dividends is a resident of the agreed country whose tax rate is lower than 10%, and the withholding agent may apply for relevant agreement treatment on his behalf in accordance with the provisions of the Notice.