Legal Alert – New double tax treaty signed between Finland and China
On 25 May 2010, Finland and China (People’s Rep.) signed a new double tax treaty and protocol in Beijing. The governmental bill was sent to the Finnish Parliament for approval on 16 July 2010. Once in force, the new treaty will replace the Finland-China income tax treaty of 12 May 1986 as amended by the 1995 protocol. Although the new treaty generally follows the 2008 OECD Model Convention, some provisions of the new treaty could have effect on structuring business activities between Finland and China. The main amendments are reported in the following.