The Taipei Economic and Cultural Office and the Australian
Commerce and Industry Office,

Desiring to conclude an agreement concerning the avoidance of
double taxation and the prevention of fiscal evasion with
respect to taxes on income,

Have agreed as follows:


ARTICLE 1 Personal Scope
This Agreement shall apply to persons who are residents of one
or both of the territories.

ARTICLE 2 Taxes Covered
1. The existing taxes to which this Agreement shall apply are :
(a) in the territory in which the taxation law administered by
the Australian Taxation Office is applied:
the income tax, and the resource rent tax in respect of
offshore projects relating to exploration for or
exploitation of petroleum resources, imposed under that law;
(b) in the territory in which the taxation law administered by
the Department of Taxation, Ministry of Finance, Taipei is
applied:
the profit seeking enterprise income tax and the individual
consolidated income tax, imposed under that law.
2. This Agreement shall apply also to any identical or
substantially similar taxes on income, profits or gains which
are imposed after the date of signature of this Agreement in
addition to, or in place of, the existing taxes. The
competent authorities will notify each other as soon as
practicable of any substantial changes which have been made
in the taxation laws of their respective territories.

ARTICLE 3 General Definitions
1. In this Agreement, unless the context otherwise requires:
(a) the term "territory" means the territory referred to in
subparagraph 1(a) or 1(b) of Article 2, as the case
requires;
(b) the term "person" includes an individual, a company and any
other body of persons;
(c) the term "company" means any body corporate or any entity
which is treated as a company or body corporate for tax
purposes;
(d) the terms "enterprise of a territory" and "enterprise of
the other territory" mean respectively an enterprise
carried on by a resident of a territory or an enterprise
carried on by a resident of the other territory, as the
context requires;
(e) the term "tax" means tax imposed under the law of a
territory, being a tax to which this Agreement applies by
virtue of Article 2, but does not include any penalty or
interest imposed under that law;
(f) the term "competent authority" means, in the case of the
territory in which the taxation law administered by the
Australian Taxation Office is applied, the Commissioner of
Taxation or an authorised representative of the
Commissioner and, in the case of the territory in which the
taxation law administered by the Department of Taxation,
Ministry of Finance, Taipei is applied, the
Director-General of the Department of Taxation or an
authorised representative of the Director-General.
2. As regards the application of this Agreement at any time in a
territory, any term not defined in this Agreement shall,
unless the context otherwise requires, have the meaning which
it has at that time under the law of that territory
concerning the taxes to which this Agreement applies, any
meaning under the applicable tax law of that territory
prevailing over a meaning given to the term under other laws
of that territory.

ARTICLE 4 Residence
1. For the purposes of this Agreement, a person is a resident of
a territory if the person is a resident of that territory for
the purposes of its tax.
2. A person is not a resident of the territory in which the
taxation law administered by the Australian Taxation Office
is applied for the purposes of this Agreement if the person
is liable to tax in that territory in respect only of income
from sources in that territory.
3. Where by reason of the preceding provisions of this Article a
person, being an individual, is a resident of both
territories, then the status of the person shall be
determined in accordance with the following rules:
(a) the person shall be deemed to be a resident solely of the
territory in which a permanent home is available to the
person;
(b) if a permanent home is available to the person in both
territories, or in neither of them, the person shall be
deemed to be a resident solely of the territory in which
the person has an habitual abode;
(c) if the person has an habitual abode in both territories or
in neither of them, the person shall be deemed to be a
resident solely of the territory with which the person's
economic and personal relations are closer.
4. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both territories,
then it shall be deemed to be a resident solely of the
territory in which its place of incorporation is situated.

ARTICLE 5 Permanent Establishment
1. For the purposes of this Agreement, the term "permanent
establishment", in relation to an enterprise, means a fixed
place of business through which the business of the
enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources;
(g) an agricultural, pastoral or forestry property;
(h) a building site or construction, installation or assembly
project which exists for more than 6 months; and
(i) the furnishing of services, including consultancy services
in a territory by an enterprise of the other territory
through employees or other personnel engaged by the
enterprise for such purpose, but only where those
activities ( for the same or a connected project ) within
the first-mentioned territory continue for a period or
periods aggregating more than 120 days within any twelve
month period.
3. An enterprise shall not be deemed to have a permanent
establishment merely by reason of:
(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to
the enterprise; or
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage, display or delivery ; or
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise; or
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise, or of
collecting information, for the enterprise; or
(e) the maintenance of a fixed place of business solely for the
purpose of activities which have a preparatory or auxiliary
character for the enterprise, such as advertising or
scientific research.
4. An enterprise shall be deemed to have a permanent
establishment in a territory and to carry on business through
that permanent establishment if:
(a) it carries on supervisory activities in that territory for
more than 6 months in connection with a building site, or
a construction, installation or assembly project, which is
being undertaken in that territory; or
(b) substantial equipment is being used in that territory by,
for or under contract with, the enterprise where that use
continues for more than 3 months.
5. A person acting in a territory on behalf of an enterprise of
the other territory - other than an agent of an independent
status to whom paragraph 6 applies - shall be deemed to be a
permanent establishment of that enterprise in the
first-mentioned territory if:
(a) the person has, and habitually exercises in that territory,
an authority to conclude contracts on behalf of the
enterprise, unless the person's activities are limited to
the purchase of goods or merchandise for the enterprise; or
(b) in so acting, the person manufactures or processes in that
territory for the enterprise goods or merchandise belonging
to the enterprise.
6. An enterprise of a territory shall not be deemed to have a
permanent establishment in the other territory merely because
it carries on business in that other territory through a
person who is a broker, general commission agent or any other
agent of an independent status and is acting in the ordinary
course of the person's business as such a broker or agent.
7. The fact that a company which is a resident of a territory
controls or is controlled by a company which is a resident of
the other territory, or which carries on business in that
other territory (whether through a permanent establishment or
otherwise), shall not of itself make either company a
permanent establishment of the other.
8. The principles set forth in the preceding paragraphs of this
Article shall be applied in determining for the purposes of
paragraph 5 of Article 11 and paragraph 5 of Article 12
whether an enterprise, not being an enterprise of either
territory, has a permanent establishment in a territory.

ARTICLE 6 Income from Real Property
1. Income from real property may be taxed in the territory in
which the real property is situated.
2. In this Article, the term "real property":
(a) in the case of the territory in which the taxation law
administered by the Australian Taxation Office is applied,
has the meaning it has under the law of that territory, and
includes:
(i) a lease of land and any other interest in or over land,
whether improved or not; and
(ii) a right to receive variable or fixed payments as
consideration for the exploitation of or the right to
explore for or exploit, or in respect of the proceeds
from the exploitation of, mineral deposits, oil or gas
wells, quarries or other places of extraction or
exploitation of natural resources; and
(b) in the case of the territory in which the taxation law
administered by the Department of Taxation, Ministry of
Finance, Taipei is applied, has the meaning it has under
the law of that territory, and includes:
(i) property accessory to immovable property, livestock and
equipment used in agriculture and forestry;
(ii) rights to which the provisions of the general law
respecting landed property apply; and
(iii) usufruct of immovable property and rights to variable
or fixed payments as consideration for the exploitation
of or the right to explore for or exploit, or in
respect of the exploitation of, mineral deposits,
sources and other natural resources; but
(c) shall not include ships, boats and aircraft.
3. Any interest or right referred to in paragraph 2 shall be
regarded as situated where the land, mineral, oil or gas
deposits, quarries or natural resources, as the case may be,
are situated or where the exploration may take place.
4. The provisions of paragraph 1 shall apply to income derived
from the direct use, letting, or use in any other form of
real property.
5. The provisions of paragraphs 1 and 4 shall also apply to
income from real property of an enterprise and to income from
real property used for the performance of independent
personal services.

ARTICLE 7 Business Profits
1. The profits of an enterprise of a territory shall be taxable
only in that territory unless the enterprise carries on
business in the other territory through a permanent
establishment situated in that other territory. If the
enterprise carries on business in that manner, the profits of
the enterprise may be taxed in the other territory but only
so much of them as is attributable to that permanent
establishment.
2. Subject to the provisions of paragraph 3, where an enterprise
of a territory carries on business in the other territory
through a permanent establishment situated in that other
territory, there shall be attributed to that permanent
establishment in each territory the profits which that
permanent establishment might be expected to make if it were
a distinct and separate enterprise engaged in the same or
similar activities under the same or similar conditions and
dealing wholly independently with the enterprise of which it
is a permanent establishment or with other enterprises with
which it deals.
3. In determining the profits of a permanent establishment,
there shall be allowed as deductions expenses which are
incurred for the purposes of the permanent establishment (
including executive and general administrative expenses so
incurred) and which would be deductible if the permanent
establishment were an independent entity which paid those
expenses, whether incurred in the territory in which the
permanent establishment is situated or elsewhere.
4. No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent
establishment of goods or merchandise for the enterprise.
5. Nothing in this Article shall affect the application of any
law of a territory relating to the determination of the tax
liability of a person, including determinations in cases
where the information available to the competent authority of
that territory is inadequate to determine the profits to be
attributed to a permanent establishment, provided that that
law shall be applied, so far as it is practicable to do so,
consistently with the principles of this Article.
6. Where profits include items of income or gains which are
dealt with separately in other Articles of this Agreement,
then the provisions of those Articles shall not be affected
by the provisions of this Article.
7. Nothing in this Article shall affect the operation of any law
of a territory relating to tax imposed on profits from
insurance with nonresidents provided that if the relevant law
in force in either territory at the date of signature of this
Agreement is varied (otherwise than in minor respects so as
not to affect its general character) the parties to this
Agreement shall consult each other with a view to
facilitating any amendment of this paragraph as may be
appropriate.
8. Where:
(a) a resident of a territory is beneficially entitled, whether
directly or through one or more interposed trust estates,
to a share of the business profits of an enterprise carried
on in the other territory by the trustee of a trust estate
other than a trust estate which is treated as a company for
tax purposes; and
(b) in relation to that enterprise, that trustee would, in
accordance with the principles of Article 5, have a
permanent establishment in that other territory,
the enterprise carried on by the trustee shall be deemed to
be a business carried on in the other territory by that
resident through a permanent establishment situated in that
other territory and that share of business profits shall be
attributed to that permanent establishment.

ARTICLE 8 Ships and Aircraft
1. Profits derived by an enterprise of a territory from the
operation of ships or aircraft shall be taxable only in that
territory.
2. Notwithstanding the provisions of paragraph 1, such profits
shall be taxed in the other territory to the extent that they
are profits derived directly or indirectly from ship or
aircraft operations confined solely to places in that other
territory.
3. The profits to which the provisions of paragraphs 1 and 2
apply shall include profits from:
(a) the lease of ships or aircraft on a full time, voyage or
bareboat basis, and of containers and related equipment,
which is merely incidental to the international operation
of ships or aircraft by the lessor, provided that the
leased ships or aircraft, or the containers and related
equipment, are used in international operations by the
lessee; and
(b) the operation of ships or aircraft derived through
participation in a pool, a joint business or an
international operating agency.
4. For the purposes of this Article, profits derived from the
carriage by ships or aircraft of passengers, livestock, mail,
goods or merchandise which are shipped in a territory and
discharged at a place in that territory shall be treated as
profits from ship or aircraft operations confined solely to
places in that territory.

ARTICLE 9 Associated Enterprises
1. Where
(a) an enterprise of a territory participates directly or
indirectly in the management, control or capital of an
enterprise of the other territory; or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
territory and an enterprise of the other territory,
and in either case conditions operate between the two
enterprises in their commercial or financial relations which
differ from those which might be expected to operate between
independent enterprises dealing wholly independently with one
another, then any profits which, but for those conditions,
might have been expected to accrue to one of the enterprises,
but, by reason of those conditions, have not so accrued, may
be included in the profits of that enterprise and taxed
accordingly.
2. Nothing in this Article shall affect the application of any
law of a territory relating to the determination of the tax
liability of a person, including determinations in cases
where the information available to the competent authority of
that territory is inadequate to determine the profits to be
attributed to an enterprise, provided that that law shall be
applied, so far as it is practicable to do so, consistently
with the principles of this Article.
3. Where profits on which an enterprise of a territory has been
charged to tax in that territory are also included, by virtue
of the provisions of paragraph 1 or 2, in the profits of an
enterprise of the other territory and charged to tax in that
other territory, and the profits so included are profits
which might have been expected to have accrued to that
enterprise of the other territory if the conditions operative
between the enterprises had been those which might have been
expected to have operated between independent enterprises
dealing wholly independently with one another, then the
first-mentioned territory shall make an appropriate
adjustment to the amount of tax charged on those profits in
the first-mentioned territory. In determining such an
adjustment, due regard shall be had to the other provisions
of this Agreement and for this purpose the competent
authorities shall if necessary consult each other.

ARTICLE 10 Dividends
1. Dividends paid by a company which is a resident of a
territory for the purposes of its tax, being dividends to
which a resident of the other territory is beneficially
entitled, may be taxed in that other territory.
2. However, those dividends may also be taxed in the territory
of which the company paying the dividends is a resident for
the purposes of its tax, and according to the law of that
territory, but the tax so charged shall not exceed:
(a) in the territory in which the taxation law administered by
the Australian Taxation Office is applied:
(i) 10 per cent of the gross amount of the dividends, to the
extent to which the dividends have been fully "franked"
in accordance with the federal law of that territory
relating to its income tax; and
(ii) 15 per cent of the gross amount of the dividends in all
other cases; and
(b) in the territory in which the taxation law administered by
the Department of Taxation, Ministry of Finance, Taipei is
applied:
(i) 10 per cent of the gross amount of the dividends, where
the dividends are paid to a company (other than a
partnership) which holds directly at least 25 per cent of
the capital of the company paying the dividends; and
(ii) 15 per cent of the gross amount of the dividends in all
other cases,
provided that if the relevant law in either territory at the
date of signature of this Agreement is varied, otherwise than
in minor respects so as to not affect its general character,
the parties to this Agreement shall consult each other with a
view to facilitating any amendment of this paragraph as may
be appropriate.
3. The term "dividends" in this Article means income from shares
and other income assimilated to income from shares by the
law, relating to tax, of the territory of which the company
making the distribution is a resident for the purposes of its
tax.
4 The provisions of paragraphs 1 and 2 shall not apply if the
person beneficially entitled to the dividends, being a
resident of a territory, carries on business in the other
territory of which the company paying the dividends is a
resident, through a permanent establishment situated in that
other territory, or performs in that other territory
independent personal services from a fixed base situated in
that other territory, and the holding in respect of which the
dividends are paid is effectively connected with that
permanent establishment or fixed base. In that case the
provisions of Article 7 or Article 14, as the case may be,
shall apply.
5 Dividends paid by a company which is a resident of a
territory, being dividends to which a person who is not a
resident of the other territory is beneficially entitled,
shall be exempt from tax in that other territory except
insofar as the holding in respect of which the dividends are
paid is effectively connected with a permanent establishment
or a fixed base situated in that other territory. This
paragraph shall not apply in relation to dividends paid by
any company which is a resident of the territory in which the
taxation law administered by the Australian Taxation Office
is applied for the purposes of tax imposed by that territory
and which is also a resident of the territory in which the
taxation law administered by the Department of Taxation,
Ministry of Finance, Taipei is applied for the purposes of
tax imposed by that territory.

ARTICLE 11 Interest
1. Interest arising in a territory, being interest to which a
resident of the other territory is beneficially entitled, may
be taxed in that other territory.
2. However, that interest may also be taxed in the territory in
which it arises, and according to the law of that territory,
but the tax so charged shall not exceed 10 per cent of the
gross amount of the interest.
3. The term "interest" in this Article includes interest from
government securities or from bonds or debentures, whether or
not secured by mortgage and whether or not carrying a right
to participate in profits, interest from any other form of
indebtedness and all other income assimilated to income from
money lent by the law, relating to tax, of the territory in
which the income arises.
4. The provisions of paragraphs 1 and 2 shall not apply if the
person beneficially entitled to the interest, being a
resident of a territory, carries on business in the other
territory, in which the interest arises, through a permanent
establishment situated in that other territory, or performs
in that other territory independent personal services from a
fixed base situated in that other territory, and the
indebtedness in respect of which the interest is paid is
effectively connected with that permanent establishment or
fixed base. In that case the provisions of Article 7 or
Article 14, as the case may be, shall apply.
5. Interest shall be deemed to arise in a territory when the
payer is an authority of that territory or a subdivision or
local authority of that territory or a person who is a
resident of that territory for the purposes of its tax.
Where, however, the person paying the interest, whether the
person is a resident of a territory or not, has in a
territory a permanent establishment or fixed base in
connection with which the indebtedness on which the interest
is paid was incurred, and that interest is borne by that
permanent establishment or fixed base, then the interest
shall be deemed to arise in the territory in which the
permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the person beneficially entitled to the interest, or
between both of them and some other person, the amount of the
interest paid, having regard to the indebtedness for which
it is paid, exceeds the amount which might have been expected
to have been agreed upon by the payer and the person so
entitled in the absence of that relationship, the provisions
of this Article shall apply only to the last-mentioned
amount. In that case, the excess part of the amount of the
interest paid shall remain taxable according to the law,
relating to tax, of each territory, but subject to the other
provisions of this Agreement .

ARTICLE 12 Royalties
1. Royalties arising in a territory, being royalties to which a
resident of the other territory is beneficially entitled, may
be taxed in that other territory.
2. However, those royalties may also be taxed in the territory
in which they arise, and according to the law of that
territory, but the tax so charged shall not exceed 12.5 per
cent of the gross amount of the royalties.
3. The term "royalties" in this Article means payments or
credits, whether periodical or not, and however described or
computed, to the extent to which they are made as
consideration for:
(a) the use of, or the right to use, any copyright, patent,
design or model, plan, secret formula or process,
trademark or other like property or right; or
(b) the use of, or the right to use, any industrial, commercial
or scientific equipment; or
(c) the supply of scientific, technical, industrial or
commercial knowledge or information; or
(d) the supply of any assistance that is ancillary and
subsidiary to, and is furnished as a means of enabling the
application or enjoyment of, any such property or right as
is mentioned in subparagraph (a), any such equipment as is
mentioned in subparagraph (b) or any such knowledge or
information as is mentioned in subparagraph(c) of this
paragraph; or
(e) the reception of, or the right to receive, visual images or
sounds, or both, transmitted to the public by:
(i) satellite; or
(ii) cable, optic fibre or similar technology; or
(f) the use in connection with television broadcasting or radio
broadcasting, or the right to use in connection with
television broadcasting or radio broadcasting, visual
images or sounds, or both, transmitted by:
(i) satellite; or
(ii) cable, optic fibre or similar technology; or
(g) the use of, or the right to use:
(i) motion picture films; or
(ii) films or video tapes for use in connection with
television; or
(iii) tapes for use in connection with radio broadcasting; or
(h) total or partial forbearance in respect of the use or
supply of any property or right referred to in this
paragraph.
4. The provisions of paragraphs l and 2 shall not apply if the
person beneficially entitled to the royalties, being a
resident of a territory, carries on business in the other
territory, in which the royalties arise, through a permanent
establishment situated in that other territory, or performs
in that other territory independent personal services from a
fixed base situated in that other territory, and the property
or right in respect of which the royalties are paid or
credited is effectively connected with that permanent
establishment or fixed base. In that case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
5. Royalties shall be deemed to arise in a territory when the
payer is an authority of that territory or a subdivision or
local authority of that territory or a person who is a
resident of that territory for the purposes of its tax.
Where, however, the person paying the royalties, whether the
person is a resident of a territory or not, has in a
territory a permanent establishment or fixed base in
connection with which the liability to pay the royalties was
incurred, and the royalties are borne by the permanent
establishment or fixed base, then the royalties shall be
deemed to arise in the territory in which the permanent
establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the person beneficially entitled to the royalties, or
between both of them and some other person, the amount of the
royalties paid or credited, having regard to what they are
paid or credited for, exceeds the amount which might have
been expected to have been agreed upon by the payer and the
person so entitled in the absence of such relationship, the
provisions of this Article shall apply only to the
last-mentioned amount. In that case, the excess part of the
amount of the royalties paid or credited shall remain taxable
according to the law, relating to tax, of each territory, but
subject to the other provisions of this Agreement.

ARTICLE 13 Alienation of Property
1. Income, profits or gains derived by a resident of a territory
from the alienation of real property situated in the other
territory may be taxed in that other territory.
2. Income, profits or gains from the alienation of property,
other than real property, that forms part of the business
property of a permanent establishment which an enterprise of
a territory has in the other territory or pertains to a fixed
base available in that other territory to a resident of the
first-mentioned territory for the purpose of performing
independent personal services, including income, profits or
gains from the alienation of that permanent establishment
(alone or with the whole enterprise) or of that fixed base,
may be taxed in that other territory.
3. Income, profits or gains from the alienation of ships or
aircraft operated in international traffic, or of property
(other than real property) pertaining to the operation of
those ships or aircraft, shall be taxable only in the
territory of which the enterprise operating those ships or
aircraft is a resident.
4. Income, profits or gains derived by a resident of a territory
from the alienation of shares or comparable interests in a
company, the assets of which consist wholly or principally of
real property situated in the other territory, may be taxed
in that other territory.
5. Nothing in this Agreement shall affect the application of a
law of a territory relating to the taxation of gains of a
capital nature derived from the alienation of any property
other than that to which any of the preceding paragraphs of
this Article apply.
6. In this Article, the term "real property" has the same
meaning as it has in Article 6.
7. The situation of real property shall be determined for the
purposes of this Article in accordance with paragraph 3 of
Article 6.

ARTICLE 14 Independent Personal Services
1. Income derived by an individual who is a resident of a
territory in respect of professional services or other
activities of an independent character shall be taxable only
in that territory unless a fixed base is regularly available
to the individual in the other territory for the purpose of
performing the individual's activities. If such a fixed base
is available to the individual, the income may be taxed in
the other territory but only so much of it as is attributable
to activities exercised from that fixed base.
2. The term "professional services" includes services performed
in the exercise of independent scientific, literary,
artistic, educational or teaching activities as well as in
the exercise of the independent activities of physicians,
lawyers, engineers, architects, dentists and accountants.

ARTICLE l5 Dependent Personal Services
1. Subject to the provisions of Articles 16, 18 and l9,
salaries, wages and other similar remuneration derived by an
individual who is a resident of a territory in respect of an
employment shall be taxable only in that territory unless the
employment is exercised in the other territory. If the
employment is so exercised, such remuneration as is derived
from that exercise may be taxed in that other territory.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by an individual who is a resident of a territory in
respect of an employment exercised in the other territory
shall be taxable only in the first-mentioned territory if:
(a) the recipient is present in the other territory for a
period or periods not exceeding in the aggregate 183 days
in any twelve month period commencing or ending in the year
of income concerned; and
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of that other territory; and
(c) the remuneration is not deductible in determining taxable
profits of a permanent establishment or a fixed base which
the employer has in that other territory; and
(d) the remuneration is, or upon the application of this
Article will be, subject to tax in the first-mentioned
territory.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated by an enterprise of a
territory in international traffic shall be taxable only in
that territory.

ARTICLE 16 Directors' Fees
Directors' fees and similar payments derived by a resident of a
territory in the person's capacity as a member of the board of
directors of a company which is a resident of the other
territory may be taxed in that other territory.

ARTICLE 17 Entertainers and Sportspersons
1. Notwithstanding the provisions of Articles14 and 15, income
derived by entertainers (such as theatrical, motion picture,
radio or television artistes and musicians) and sportspersons
from their personal activities as such may be taxed in the
territory in which these activities are exercised.
2. Where income in respect of the personal activities of an
entertainer or a sportsperson as such accrues not to that
entertainer or sportsperson but to another person, that
income may, notwithstanding the provisions of Articles 7, 14
and 15, be taxed in the territory in which the activities of
the entertainer or sportsperson are exercised.

ARTICLE 18 Pensions and Annuities
1. All pensions and annuities paid to a resident of a territory
shall be taxable only in that territory.
2. The term "annuity" means a stated sum payable periodically at
stated times during life or during a specified or
ascertainable period of time under an obligation to make the
payments in return for adequate and full consideration in
money or money's worth.

ARTICLE 19 Public Service
1. Salaries, wages and other similar remuneration, other than a
pension or annuity, paid by an authority administering a
territory or a subdivision of that territory or by a local
authority of that territory to any individual in respect of
services rendered in the discharge of public or
administrative functions on behalf of such an authority shall
be taxable only in that territory. However, such salaries,
wages and other similar remuneration shall be taxable only in
the other territory if the services are rendered in that
other territory and the recipient is a resident of that other
territory who:
(a) is a citizen or national of that territory; or
(b) did not become a resident of that territory solely for the
purpose of performing the services.
2. The provisions of paragraph 1 shall not apply to salaries,
wages and other similar remuneration in respect of services
rendered in connection with any trade or business carried on
by any authority referred to in paragraph 1. In that case,
the provisions of Article 15 or Article 16 , as the case may
be, shall apply.

ARTICLE 20 Students
Where a student, who is a resident of a territory or who was a
resident of that territory immediately before visiting the other
territory and who is temporarily present in that other territory
solely for the purpose of the student's education, receives
payments from sources outside that other territory for the
purpose of the student's maintenance or education, those
payments shall be exempt from tax in that other territory.

ARTICLE 21 Other Income
1. Items of income of a resident of a territory, wherever
arising, not dealt with in the foregoing Articles of this
Agreement shall be taxable only in that territory.
2. However, any such income derived by a resident of a territory
from sources in the other territory may also be taxed in that
other territory.
3. The provisions of paragraph 1 shall not apply to income,
other than income from real property as defined in paragraph
2 of Article 6, derived by a resident of a territory where
that income is effectively connected with a permanent
establishment or fixed base situated in the other territory.
In that case, the provisions of Article 7 or Article 14, as
the case may be, shall apply.

ARTICLE 22 Methods of Elimination of Double Taxation
Subject to the provisions of the law of a territory from time to
time in force relating to the allowance of a credit against tax
payable in that territory of tax paid outside that territory
(which shall not affect the general principle of this Article),
tax paid under the law of the other territory and in accordance
with this Agreement, whether directly or by deduction, in
respect of income derived by a person who is a resident of the
first-mentioned territory from sources in the other territory
shall be allowed as a credit against tax payable in the
first-mentioned territory in respect of that income. The amount
of credit, however, shall not exceed the amount of the tax in
the first-mentioned territory on that income computed in
accordance with its taxation laws and regulations.

ARTICLE 23 Mutual Agreement Procedure
1. Where a person considers that the actions of the competent
authority of one or both of the territories result or will
result for the person in taxation not in accordance with this
Agreement, the person may, irrespective of the remedies
provided by the domestic law of those territories concerning
taxes to which this Agreement applies, present a case to the
competent authority of the territory of which the person is a
resident. The case must be presented within 3 years from the
first notification of the action resulting in taxation not in
accordance with this Agreement.
2. The competent authority shall endeavour, if the claim appears
to it to be justified and if it is not itself able to arrive
at a satisfactory solution, to resolve the case with the
competent authority of the other territory, with a view to
the avoidance of taxation which is not in accordance with
this Agreement. The solution so reached shall be implemented
notwithstanding any time limits in the domestic law of the
territories.
3. The competent authorities shall jointly endeavour to resolve
any difficulties or doubts arising as to the interpretation
or application of this Agreement. They may also consult
together for the elimination of double taxation in cases not
provided for in this Agreement.
4. The competent authorities may communicate with each other
directly for the purpose of giving effect to the provisions
of this Agreement.

ARTICLE 24 Exchange of Information
1. The competent authorities shall exchange such information as
is necessary for carrying out this Agreement or of the
domestic law of each of the territories concerning taxes to
which this Agreement applies insofar as the taxation under
that law is not contrary to this Agreement. Any information
received by the competent authority of a territory shall be
treated as secret in the same manner as information obtained
under the domestic law of that territory and shall be
disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
or the determination of appeals in relation to, the taxes to
which this Agreement applies. Such persons or authorities
shall use the information only for such purposes. They may
disclose the information in public court proceedings or in
judicial decisions.
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on the competent authority of a territory the
obligation:
(a) to carry out administrative measures at variance with the
law or the administrative practice of that or of the other
territory; or
(b) to supply information which is not obtainable under the law
or in the normal course of the administration of that or of
the other territory; or
(c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or to supply information the disclosure of
which would be contrary to public policy.

ARTICLE 25 Entry into Effect
This Agreement shall enter into effect on the date on which the
Australian Commerce and Industry Office and the Taipei Economic
and Cultural Office notify each other in writing that the last
of such things has been done as is necessary to give this
Agreement effect in the domestic law of the respective
territories. This Agreement shall have effect:
(a) in both territories, in respect of:
(i) withholding tax on income, profits or gains derived by a
nonresident, in relation to income, profits or gains
derived on or after the first day of the second month
next following that in which the Agreement enters into
effect;
(ii) tax in relation to profits to which Article 8 applies,
on or after 1 January 1991;
(b) in respect of other tax of the territory in which the
taxation law administered by the Australian Taxation Office
is applied, in relation to income, profits or gains of any
year of income beginning on or after 1 July in the calendar
year next following that in which the Agreement enters into
effect;
(c) in respect of other tax of the territory in which the
taxation law administered by the Department of Taxation,
Ministry of Finance, Taipei is applied, in relation to
income, profits or gains of any year of income beginning on
or after 1 January in the calendar year next following that
in which the Agreement enters into effect.

ARTICLE 26 Termination
This Agreement shall continue in effect indefinitely, but an
authority administering either territory may, on or before 30
June in any calendar year beginning after the expiration of 5
years from the date of its entry into effect, give to the other
written notice of termination and, in that event, the Agreement
shall cease to be effective:
(a) in both territories, in respect of withholding tax on
income, profits or gains derived by a nonresident, in
relation to income, profits or gains derived on or after
the first day of the second month next following that in
which the notice of termination is given:
(b) in respect of other tax of the territory in which the
taxation law administered by the Australian Taxation Office
is applied, in relation to income, profits or gains of any
year of income beginning on or after 1 July in the calendar
year next following that in which the notice of termination
is given;
(c) in respect of other tax of the territory in which the
taxation law administered by the Department of Taxation,
Ministry of Finance, Taipei is applied, in relation to
income, profits or gains of any year of income beginning on
or after 1 January in the calendar year next following that
in which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorised, have
signed this Agreement.

DONE in duplicate at Canberra this 29th day of May 1996 in the
Chinese and English languages, both texts being equally
authentic. In case of any divergence of interpretation, the
English text shall prevail.

FOR THE TAIPEI ECONOMIC FOR THE AUSTRALIAN COMMERCE
AND CULTURAL OFFICE AND INDUSTRY OFFICE


ANNEX
The Australian Commerce and Industry Office and the Taipei
Economic and Cultural Office, Having regard to the Agreement
concerning the avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes signed today at Canberra
(in this Annex called "Agreement");

Have agreed as follows:

1. If a subsequent Agreement that is given effect under the
International Tax Agreements Act 1953 in the territory in
which the taxation law administered by the Australian
Taxation Office is applied, includes a Non-Discrimination
Article, the parties to this Annex will enter into
negotiations with a view to providing the same treatment as
is provided for in the Non-Discrimination Article;
2. Income, profits or gains derived by an organisation, or its
successors, agreed by the competent authorities in an
exchange of letters for the purposes of this paragraph as
carrying on activities promoting trade, investment and
cultural exchanges between the territories, shall be taxable
solely in the territory on whose behalf the activities are
carried on. The competent authorities will also specify in
their exchange of letters the date from which the
organisation shall be so taxable.

This Annex shall form an integral part of the Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorised, have
signed this Annex.

DONE in duplicate at Canberra this 29th day of May 1996 in the
Chinese and English languages, both texts being equally
authentic. In case of any divergence of interpretation, the
English text shall prevail.


FOR THE TAIPEI ECONOMIC FOR THE AUSTRALIAN
AND CULTURAL OFFICEFOR COMMERCE AND INDUSTRY OFFICE