The agreement also applies to other similar taxes collected in both countries. In addition, the German and Chinese tax authorities will inform each other of changes to their tax regimes that could affect the agreement. One of the most important changes to the double taxation convention between Germany and China concerns stable establishments. If, under the old contract, a construction site, management site or other meetings in Germany or China have been considered stable establishments when operating in either country for at least six months, the current agreement provides that these facilities are considered stable after being operational for at least twelve months. The new double taxation agreement between Germany and China also provides that services activities of more than 183 days may also be constituted in stable units in a calendar year. In addition, compared to other TDTs signed with other countries, the new DTT deliberately adds a paragraph: “15% of the gross amount of dividends if these dividends are paid directly or indirectly on real estate within the meaning of Article 6 of an investment vehicle that distributes the majority of this income or profits each year and whose income or profits from these real estate properties are exempt from tax.” It mainly takes into account dividends through integrated investment instruments oriented towards real estate, it is obviously more closed to the real estate result. Under the principle of Article 6, the State of origin should have unlimited taxation power. Although the new gross amount of dividends is 15%, but under the agreement and national legislation that highlights the principle of the subject, the effective tax rate in non-resident businesses is 10%, as provided for by the Enterprise Income Tax Implementation Regulations as in the case of individual non-resident income, and is collected to the tune of 15%. Tags: BEPS, Sino-German double taxation agreement After several rounds of negotiations, a new double taxation contract (“new DTT”) was signed on 28 March 2014 between the PRC and German governments to replace the old DTT, signed by the two governments on 10 June 1985. The new DTT contains new elements of a typical modern double taxation convention and has made some significant changes to the old treaty. The new DTT will enter into force on the 30th day, after both countries have followed their national ratification procedures and have informed each other, which may take some time.