Analysis of the New China-Italy Tax Treaty

Abstract

Since its inception in 1986, the China-Italy tax treaty has served as a crucial guideline for resolving issues of double taxation and preventing tax evasion and avoidance between the two countries. Over the years, with ongoing tax system reforms domestically in both nations, increasingly closer economic and trade exchanges, and new developments in international tax rules, an updated version of the China-Italy tax treaty has emerged. The tax treaty is divided into three parts: basic provisions, provisions on the elimination of double taxation, and provisions on the prevention of tax evasion and avoidance, each part has been revised to varying degrees. The tax treaty also has some shortcomings that deserve attention. However, it cannot be denied that the tax treaty enhances the consistency and coordination of bilateral tax policies and lays a solid foundation for future economic, trade, and cultural cooperation between the two countries.