The Government of the Republic of China (Taiwan) and the
Government of the Republic of Kiribati

Desiring to conclude an Agreement for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income for the purpose of maintaining and promoting
bilateral economic and commercial relations between the
countries,

Have agreed as follows:

Article 1
Persons Covered
This Agreement shall apply to persons who are residents of one
or both of the Contracting States.

Article 2
Taxes Covered
1. The existing taxes to which this Agreement shall apply are:
a) in the Republic of China (Taiwan):
(i) the profit-seeking enterprise income tax,
(ii) the individual consolidated income tax, and
(iii) the income basic tax;
b) in the Republic of Kiribati: the income tax imposed under
the law of Kiribati.
2. This Agreement shall apply also to any identical or
substantially similar taxes that are imposed after the date
of signature of this Agreement in addition to, or in place of
, the existing taxes. The competent authorities of the
Contracting States shall notify each other of any significant
changes that have been made in the taxation laws of the
respective States.

Article 3
General Definitions
1. For the purposes of this Agreement, unless the context
otherwise requires:
a) the term “ ROC ” means the Republic of China (Taiwan)
and, when used in a geographical sense, includes the
territorial sea thereof as well as any area outside the
territorial sea in respect of which the ROC is entitled, in
accordance with international law, to exercise sovereign
rights or jurisdiction;
b) the term “ Kiribati ” means the Republic of Kiribati and,
when used in a geographical sense, includes the territorial
sea thereof as well as any area outside the territorial sea
in respect of which Kiribati is entitled, in accordance
with international law, to exercise sovereign rights or
jurisdiction;
c) the terms “ a Contracting State ” and “ the other
Contracting State ” mean the Republic of China (Taiwan) or
the Republic of Kiribati as the context requires;
d) the term “ person ” includes an individual, a company and
any other body of persons;
e) the term “ company ” means any body corporate or any
entity that is treated as a body corporate for tax
purposes;
f) the term “ enterprise ” applies to the carrying on of any
business, but does not include the performance of
professional services and any activities of independent
character;
g) the terms “ enterprise of a Contracting State ” and “
enterprise of the other Contracting State ” mean
respectively an enterprise carried on by a resident of a
Contracting State and an enterprise carried on by a
resident of the other Contracting State;
h) the term “ international traffic ” means any transport by
a ship or aircraft operated by an enterprise of a
Contracting State, except when the ship or aircraft is
operated solely between places in the other Contracting
State;
i) the term “competent authority” means:
(i) in the case of the ROC, the Minister of Finance or his
authorised representative, and
(ii) in the case of Kiribati, the Minister of Finance and
Economic Development or his authorised representative;
j) the term “national” means:
(i) any individual possessing the nationality of a
Contracting State;
(ii) any legal person, partnership or association deriving
its status as such from the laws in force in a
Contracting State.
2. As regards the application of the Agreement at any time by a
Contracting State, any term not defined therein shall, unless
the context otherwise requires, have the meaning that it has
at that time under the law of that State for the purposes of
the taxes to which this Agreement applies, any meaning under
the applicable tax laws of that State prevailing over a
meaning given to the term under other laws of that State. In
the event of any dispute, Article 24 will apply.

Article 4
Resident
1. For the purposes of this Agreement, the term “ resident of a
Contracting State ” means any person who, under the laws of
that State, is liable to tax therein by reason of the person
’ s domicile, residence, place of incorporation, place of
management or any other criterion of a similar nature, and
also includes that State and any political subdivision or
local authority thereof.
2. A person is not a resident of a Contracting State for the
purposes of this Agreement if that person is liable to tax in
that State in respect only of income from sources in that
State, provided that this paragraph shall not apply to
individuals who are residents of Taiwan, as long as resident
individuals are taxed only in respect of income from sources
in the ROC in accordance with its Income Tax Act.
3. Where by reason of the preceding provisions of this Article
an individual is a resident of both Contracting States, then
the status of the individual shall be determined as follows:
a) the individual shall be deemed to be a resident only of the
State in which the individual has a permanent home
available to that individual; if the individual has a
permanent home available in both Contracting States, the
individual shall be deemed to be a resident only of the
Contracting State with which the individual ’ s personal
and economic relations are closer (centre of vital
interests);
b) if the Contracting State in which the individual ’ s
centre of vital interests cannot be determined, or if there
is no permanent home available to that individual in either
Contracting State, the individual shall be deemed to be a
resident only of the Contracting State in which the
individual has an habitual abode;
c) if the individual has an habitual abode in both Contracting
States or in neither of them, the individual shall be
deemed to be a resident only of the Contracting State of
which he is a national;
d) if the individual is a national of both States or of
neither of them, the competent authorities of the
Contracting States shall settle the question by mutual
agreement.
4. Where by reason of the provisions of paragraphs l and 2 a
person other than an individual is a resident of both
Contracting States, then it shall be deemed to be a resident
only of the State in which it is incorporated.

Article 5
Permanent Establishment
1. For the purposes of this Agreement, the term “ permanent
establishment ” means a fixed place of business through
which the business of an 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 agriculture, pastoral or forestry property, and
h) a building site or construction, installation or assembly
project which exists for a period of more than six months.
3. An enterprise of a Contracting State, notwithstanding that it
has a fixed place of business in the other Contracting State,
shall be deemed to have a permanent establishment in that
other State and to carry on business through that permanent
establishment if:
a) it carries on supervisory activities in that other State
for more than six months in connection with a building
site, or a construction, installation or assembly project
which is being undertaken in that other State, or
b) services are furnished in that other State, including
consultancy and management services, through employees or
other personnel engaged by the enterprise or an associated
enterprise for such purposes, and those activities continue
for the same or a connected project within that other State
for a period or periods aggregating more than six months
within any twelvemonth period.
4. Notwithstanding the preceding provisions of this Article, the
term “ permanent establishment ” shall be deemed not to
include:
a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to
the enterprise;
b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage, display or delivery;
c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
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;
e) the maintenance of a fixed place of business solely for the
purpose of advertising, for the supply of information, for
scientific research or for similar activities which have a
preparatory or auxiliary character, for the enterprise;
f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs a) to
e), provided that the overall activity of the fixed place
of business resulting from this combination is of a
preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs l and 2, where a
person - other than an agent of an independent status to whom
paragraph 6 applies - is acting on behalf of an enterprise
and has, and habitually exercises, in a Contracting State an
authority to conclude contracts in the name of the
enterprise, that enterprise shall be deemed to have a
permanent establishment in that State in respect of any
activities which that person undertakes for the enterprise,
unless the activities of such person are limited to those
mentioned in paragraph 4 which, if exercised through a fixed
place of business, would not make this fixed place of
business a permanent establishment under the provisions of
that paragraph.
6. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it
carries on business in that State through a broker, general
commission agent or any other agent of an independent status,
provided that such persons are acting in the ordinary course
of their business.
7. The fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a
resident of the other Contracting State, or which carries on
business in that other State (whether through a permanent
establishment or otherwise), shall not of itself constitute
either company a permanent establishment of the other.

Article 6
Income from Immovable Property
1. Income derived by a resident of a Contracting State from
immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be
taxed in that other State.
2. The term “ immovable property ” shall have the meaning
which it has under the law of the Contracting State in which
the property in question is situated. The term shall in any
case include property accessory to immovable property,
livestock and equipment used in agriculture and forestry,
rights to which the provisions of general law respecting
landed property apply, usufruct of immovable property and
rights to variable or fixed payments as consideration for the
working of, a lease of land and any other interest in or over
land, whether improved or not, or the right to work and to
mine, mineral deposits, sources and other natural resources;
ships, boats and aircraft shall not be regarded as immovable
property.
3. The provisions of paragraph l shall apply to income derived
from the direct use, letting, or use in any other form of
immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.

Article 7
Business Profits
1. The profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries on
business in the other Contracting State through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits of the enterprise may be
taxed in the other State 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 Contracting State carries on business in the other
Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed
to that permanent establishment the profits which it 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.
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, whether in the State in which the permanent
establishment is situated or elsewhere.
4. Insofar as it has been customary in a Contracting State to
determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total
profits of the enterprise to its various parts, nothing in
paragraph 2 shall preclude that Contracting State from
determining the profits to be taxed by such an apportionment
as may be customary; the method of apportionment adopted
shall, however, be such that the result shall be in
accordance with the principles contained in this Article.
5. 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.
6. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
7. Where profits include items of income 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.
8. Nothing in this Article shall affect the operation of any law
of one of the Contracting States relating to tax imposed on
profits from insurance with non residents provided that if
the relevant law in force in either Contracting States at the
date of signature of this Agreement is varied (otherwise than
in minor respects so as not to affect its general character)
the Contracting States shall consult with each other to agree
to any amendment of this paragraph that may be appropriate.
9. Where:
a) a resident of one of the Contracting States 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
Contracting State by the trustee of a trust estate other
than a trust estate which is treated as a company for tax
purpose, 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 State, the enterprise
carried on by the trustee shall be deemed to be a business
carried on in the other State by that resident through a
permanent establishment situated in that other State and
that share of business profits shall be attributed to that
permanent establishment.

Article 8
Shipping and Air Transport
1. Profits derived by an enterprise of a Contracting State from
the operation of ships or aircraft in international traffic
shall be taxable only in that Contracting State.
2. For the purposes of this Article, profits from the operation
of ships or aircraft in international traffic include:
a) profits from the rental on a full (time or voyage) basis or
a bareboat basis of ships or aircraft, and
b) profits from the use, maintenance or rental of containers
(including trailers and related equipment for the transport
of containers) used for the transport of goods or
merchandise; where such rental or such use, maintenance or
rental, as the case may be, is incidental to the operation
of ships or aircraft in international traffic.
3. Notwithstanding the provisions of paragraph 1, such profits
may be taxed in the other Contracting State, where they are
profits from the operation of ships or aircraft confined
solely to places in that other State.
4. The provisions of paragraphs 1 and 3 shall apply in relation
to the share of profits from the operation of ships or
aircraft derived by a resident of one of the Contracting
States through participation in a pool service, in a joint
transport operating organization or in an international
operating agency.
5. For the purposes of this Article, profits derived from the
carriage by ships or aircraft of passengers, livestock, mail,
goods or merchandise shipped in a Contracting State for
discharge at another place in that State shall be treated as
profits from the operation of ships or aircraft confined
solely to places in that State.

Article 9
Associated Enterprises
1. Where
a) an enterprise of a Contracting State participates directly
or indirectly in the management, control or capital of an
enterprise of the other Contracting State, or
b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
Contracting State and an enterprise of the other
Contracting State, and in either case conditions are made
or imposed between the two enterprises in their commercial
or financial relations which differ from those which would
be made between independent enterprises, then any profits
which would, but for those conditions, have accrued 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. Where a Contracting State includes in the profits of an
enterprise of that State - and taxes accordingly - profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so
included are profits which would have accrued to the
enterprise of the first-mentioned State if the conditions
made between the two enterprises had been those which would
have been made between independent enterprises, then that
other State shall make an appropriate adjustment to the
amount of the tax charged therein on those profits if that
other State considers the adjustment justified. In
determining such adjustment, due regard shall be had to the
other provisions of this Agreement and the competent
authorities of the Contracting States shall if necessary
consult each other.

Article 10
Dividends
l. Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting
State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting
State of which the company paying the dividends is a resident
and according to the laws of that State, but if the
beneficial owner of the dividends is a resident of the other
Contracting State, the tax so charged shall not exceed 10
percent of the gross amount of the dividends.
This paragraph shall not affect the taxation of the company
in respect of the profits out of which the dividends are
paid.
3. The term “ dividends ” as used in this Article means income
from shares, “ jouissance ” shares or “ jouissance ”
rights, mining shares, founders ’ shares or other rights,
not being debt-claims, participating in profits, as well as
income from other corporate rights which is subjected to the
same taxation treatment as income from shares by the laws of
the State of which the company making the distribution is a
resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other
Contracting State of which the company paying the dividends
is a resident, through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein and the holding
in respect of which the dividends are paid is effectively
connected with such permanent establishment or fixed base. In
such case the provisions of Article 7 or Article 14, as the
case may be, shall apply.
5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State,
that other State may not impose any tax on the dividends paid
by the company, except insofar as such dividends are paid to
a resident of that other State or 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 State, nor subject the company ’ s
undistributed profits to a tax on the company ’ s
undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or
income arising in such other State.

Article 11
Interest
l. Interest arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other State.
2. However, such interest may also be taxed in the Contracting
State in which it arises and according to the laws of that
State, but if the beneficial owner of the interest is a
resident of the other Contracting State, the tax so charged
shall not exceed 10 percent of the gross amount of the
interest.
3. Notwithstanding the provisions of paragraph 2 of this
Article, interest arising in a Contracting State and derived
by the Government of the other Contracting State or a
political subdivision or a local authority thereof, or any
agency owned or controlled by that Government or subdivision
or authority shall be taxable only in that other State.
4. The term “ interest ” as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage and whether or not carrying a right to participate
in the debtor's profits, and in particular, income from
government securities and income from bonds or debentures,
including premiums and prizes attaching to such securities,
bonds or debentures. However, the term “ interest ” shall
not include for the purpose of this Article penalty charges
for late payment, interest on commercial debt-claims
resulting from deferred payments for goods, merchandise or
services supplied by an enterprise.
5. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the interest arises, through a
permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base
situated therein, and the debt-claim in respect of which the
interest is paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
6. Interest shall be deemed to arise in a Contracting State when
the payer is a resident of that State. Where, however, the
person paying the interest, whether the person is a resident
of a Contracting state or not, has in a Contracting State a
permanent establishment or a fixed base in connection with
which the indebtedness on which the interest is paid was
incurred, and such interest is borne by such permanent
establishment or fixed base, then such interest shall be
deemed to arise in the State in which the permanent
establishment or fixed base is situated.
7. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to
the debt-claim for which it is paid, exceeds the amount which
would have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of
this Article shall apply only to the last-mentioned amount.
In such case, the excess part of the payments shall remain
taxable according to the laws of each Contracting State, due
regard being had to the other provisions of this Agreement.

Article 12
Royalties
l. Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other State.
2. However, such royalties may also be taxed in the Contracting
State in which they arise and according to the laws of that
State, but if the beneficial owner of the royalties is a
resident of the other Contracting State, the tax so charged
shall not exceed 10 percent of the gross amount of the
royalties.
3. The term “ royalties ” as used in this Article means
payments of any kind received as a consideration for the use
of, or the right to use, any copyright of literary, artistic
or scientific work including cinematograph films, or films or
tapes used for radio or television broadcasting, any patent,
trade mark, design or model, plan, secret formula or process,
or for information concerning industrial, commercial or
scientific experience.
4. The provisions of paragraphs l and 2 shall not apply if the
beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the royalties arise, through a
permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base
situated therein, and the right or property in respect of
which the royalties are paid is effectively connected with
such permanent establishment or fixed base. In such 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 Contracting State
when the payer is a resident of that State. Where, however,
the person paying the royalties, whether the person is a
resident of a Contracting State or not, has in a Contracting
State a permanent establishment or a fixed base in connection
with which the liability to pay the royalties was incurred,
and such royalties are borne by such permanent establishment
or fixed base, then such royalties shall be deemed to arise
in the State in which the permanent establishment or fixed
base is situated.
6. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to
the use, right or information for which they are paid,
exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such
relationship, the provisions of this Article shall apply only
to the last-mentioned amount. In such case, the excess part
of the payments shall remain taxable according to the laws of
each Contracting State, due regard being had to the other
provisions of this Agreement.

Article 13
Alienation of Property
1. Income, profits, or gains derived by a resident of a
Contracting State from the alienation of immovable property
referred to in Article 6 and situated in the other
Contracting State may be taxed in that other State.
2. Income, profits, or gains from the alienation of movable
property forming part of the business property of a permanent
establishment which an enterprise of a Contracting State has
in the other Contracting State or of movable property
pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the
purpose of performing independent personal services,
including such income, profits, or gains from the alienation
of such a permanent establishment (alone or with the whole
enterprise) or of such fixed base, may be taxed in that other
State.
3. Income, profits, or gains derived by an enterprise of a
Contracting State from the alienation of ships or aircraft
operated in international traffic or movable property
pertaining to the operation of such ships or aircraft shall
be taxable only in that State.
4. Income, profits, or gains derived by a resident of a
Contracting State from the alienation of shares deriving more
than 50 percent of their value directly or indirectly from
immovable property situated in the other Contracting State
may be taxed in that other State.
5. Income, profits, or gains from the alienation of any property
other than that referred to in paragraphs 1, 2, 3 and 4 shall
be taxable only in the Contracting State of which the
alienator is a resident.

Article 14
Independent Personal Services
1. Income derived by a resident of a Contracting State in
respect of professional services or other activities of an
independent character shall be taxable only in that State
unless:
a) the individual has a fixed base regularly available to the
individual in the other Contracting State 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 State but only so much of it as is
attributable to activities exercised from that fixed base,
or
b) the individual ’ s stay in that other Contracting State is
for a period or periods exceeding in the aggregate 183 days
within any twelve-month period. In that case so much of the
income as is derived from that individual ’ s activities
in that other Contracting State may be taxed in that State.
2. The term “ professional services ” includes especially
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 15
Income from Employment
1. Subject to the provisions of Articles 16, 18 and 19,
salaries, wages and other similar remuneration derived by a
resident of a Contracting State in respect of an employment
shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment
is so exercised, such remuneration as is derived therefrom
may be taxed in that other State.
2. Notwithstanding the provisions of paragraph l, remuneration
derived by a resident of a Contracting State in respect of an
employment exercised in the other Contracting State shall be
taxable only in the firstmentioned State if:
a) the recipient is present in the other State for a period or
periods not exceeding in the aggregate 183 days within any
twelve-month period, and
b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other State, and
c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic
by an enterprise of a Contracting State, may be taxed in that
State.

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

Article 17
Entertainers and Sportspersons
1. Notwithstanding the provisions of Articles 14 and 15, income
derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or
television artiste, or a musician, or as a sportsperson, from
that individual ’ s personal activities as such exercised in
the other Contracting State, may be taxed in that other
State.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsperson in that individual ’ s
capacity as such accrues not to that entertainer or
sportsperson personally but to another person, that income
may, notwithstanding the provisions of Articles 7, 14 and 15,
be taxed in the Contracting State in which the activities of
the entertainer or sportsperson are exercised.
3. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities performed in a Contracting
State by entertainers or sportspersons if the visit to that
State is wholly or mainly supported by public funds of one or
both of the Contracting States or political subdivisions or
local authorities thereof. In such case, the income is
taxable only in the State in which the entertainer or the
sportsperson is a resident.

Article 18
Pensions and Annuities
1. Subject to the provisions of paragraph 2 of Article 19,
pensions and other similar remuneration in consideration of
past employment and any annuity paid to a resident of a
Contracting State shall be taxable only in that State.
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
Government Service
1. a) Salaries, wages and other similar remuneration, other than
a pension or annuity, paid by a Contracting State or a
political subdivision or a local authority thereof to an
individual in respect of services rendered to that State
or subdivision or authority shall be taxable only in that
State.
b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other
Contracting State if the services are rendered in that
State and the individual is a resident of that State who:
(i) is a national of that State, or
(ii) did not become a resident of that State solely for the
purpose of rendering the services.
2. a) Any pension or annuity paid by, or out of funds created by
, a Contracting State or a political subdivision or a
local authority thereof to an individual in respect of
services rendered to that State or subdivision or
authority shall be taxable only in that State.
b) However, such pension or annuity shall be taxable only in
the other Contracting State if the individual is a
resident of, and a national of, that State.
3. The provisions of Articles 15, 16, 17 and 18 shall apply to
salaries, wages and other similar remuneration, and to
pensions or annuities, in respect of services rendered in
connection with a business carried on by a Contracting State
or a political subdivision or a local authority thereof.

Article 20
Teachers, Researchers, Trainees and Students
1. An individual who visits a Contracting State at the
invitation of that State or of a university, college, school,
museum or other cultural institution of that State or under
an official program of cultural exchange for a period not
exceeding two years solely for the purpose of teaching,
giving lectures or carrying out research at such institution
and who is, or was immediately before that visit, a resident
of the other Contracting State shall be exempt from tax in
the first-mentioned State on that individual ’ s
remuneration for such activity, provided that such
remuneration is derived by that individual from outside that
State.
2. Payments which a student or business trainee who is or was
immediately before visiting a Contracting State a resident of
the other Contracting State and who is present in the
first-mentioned State solely for the purpose of that
individual ’ s education or training receives for the
purpose of that individual ’ s maintenance, education or
training shall not be taxed in that State, provided that such
payments arise from sources outside that State.

Article 21
Other Income
1. Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the foregoing Articles of
this Agreement shall be taxable only in that State.
2. The provisions of paragraph l shall not apply to income,
other than income from immovable property as defined in
paragraph 2 of Article 6, if the recipient of such income,
being a resident of a Contracting State, carries on business
in the other Contracting State through a permanent
establishment, or performs in that other State independent
personal services from a fixed base situated therein, and the
right or property in respect of which the income is paid is
effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or
Article 14, as the case may be, shall apply.

Article 22
Elimination of Double Taxation
1. In the case of the ROC, where a resident of the ROC derives
income from Kiribati, the amount of tax on that income paid
in Kiribati (but excluding, in the case of a dividend, tax
paid in respect of the profits out of which the dividend is
paid) and in accordance with the provisions of this
Agreement, shall be credited against the tax levied in the
ROC imposed on that resident. The amount of credit, however,
shall not exceed the amount of the tax in the ROC on that
income computed in accordance with its taxation laws and
regulations.
2. In the case of Kiribati, subject to the provisions of the
laws of Kiribati from time to time in force relating to the
allowance of a credit against tax payable in Kiribati of tax
paid outside Kiribati (which shall not affect the general
principle of this Article), tax paid under the laws of Taiwan
and in accordance with this Agreement, whether directly or by
deduction, in respect of income derived by a person who is a
resident of Kiribati from sources in the ROC shall be allowed
as a credit against tax payable in Kiribati in respect of
that income. The amount of credit, however, shall not exceed
the amount of the tax in Kiribati on that income computed in
accordance with its taxation laws and regulations.

Article 23
Non-Discrimination
1. Nationals of a Contracting State shall not be subjected in
the other Contracting State to any taxation or any
requirement connected therewith, which is other or more
burdensome than the taxation and connected requirements to
which nationals of that other State in the same
circumstances, in particular with respect to residence, are
or may be subjected. This provision shall, notwithstanding
the provisions of Article l, also apply to persons who are
not residents of one or both of the Contracting States.
2. The taxation on a permanent establishment which an enterprise
of a Contracting State has in the other Contracting State
shall not be less favourably levied in that other State than
the taxation levied on enterprises of that other State
carrying on the same activities. This provision shall not be
construed as obliging a Contracting State to grant to
residents of the other Contracting State any personal
allowances, reliefs and reductions for taxation purposes on
account of civil status or family responsibilities which it
grants to its own residents.
3. Except where the provisions of paragraph l of Article 9,
paragraph 7 of Article 11, or paragraph 6 of Article 12,
apply, interest, royalties and other disbursements paid by an
enterprise of a Contracting State to a resident of the other
Contracting State shall, for the purpose of determining the
taxable profits of such enterprise, be deductible under the
same conditions as if they had been paid to a resident of the
first-mentioned State.
4. Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly,
by one or more residents of the other Contracting State,
shall not be subjected in the firstmentioned State to any
taxation or any requirement connected therewith which is
other or more burdensome than the taxation and connected
requirements to which other similar enterprises of the
firstmentioned State are or may be subjected.
5. The provisions of this Article shall apply to taxes which are
the subject of this Agreement.
6. This Article shall not be construed so as to apply to any
provision of the laws of a Contracting State which:
a) is designed to prevent the avoidance or evasion of taxes;
b) does not allow tax rebates, credits or exemption in
relation to dividends paid by a company that is a resident
of that Contracting State for purposes of its tax;
c) is designed for the purposes of the promotion of economic
development and public policy;
d) is otherwise agreed to be unaffected by this Article in an
exchange of letters between the competent authorities.

Article 24
Mutual Agreement Procedure
1. Where a person considers that the actions of one or both of
the Contracting States result or will result for that person
in taxation not in accordance with the provisions of this
Agreement, the person may, irrespective of the remedies
provided by the domestic law of those States, present that
case to the competent authority of the Contracting State of
which that person is a resident or, if that person ’ s case
comes under paragraph l of Article 23, to that of the
Contracting State of which the person is a national. The case
must be presented within three years from the first
notification of the action resulting in taxation not in
accordance with the provisions of this Agreement.
2. The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
Contracting State, with a view to the avoidance of taxation
which is not in accordance with this Agreement. Any agreement
reached shall be implemented notwithstanding any time limits
in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement 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 of the Contracting States may
communicate with each other directly for the purpose of
reaching an agreement in the sense of the preceding
paragraphs.

Article 25
Exchange of Information
1. The competent authorities of the Contracting States shall
exchange such information as is forseeably relevant for
carrying out the provisions of this Agreement or to the
administration or enforcement of the domestic laws concerning
taxes covered by this Agreement insofar as the taxation
thereunder is not contrary to the Agreement. The exchange of
information is not restricted by Article l.
2. Any information received under paragraph 1 by a Contracting
State shall be treated as secret in the same manner as
information obtained under the domestic laws of that State
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, the determination of appeals in
relation to the taxes referred to in paragraph 1, or the
oversight of the above. 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.
3. In no case shall the provisions of paragraphs l and 2 be
construed so as to impose on a Contracting State the
obligation:
a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting State;
b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that
or of the other Contracting State;
c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information, the disclosure of which
would be contrary to public policy (ordre public).
4. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State
shall use its information gathering measures to obtain the
requested information, even though that other State may not
need such information for its own tax purposes. The
obligation contained in the preceding sentence is subject to
the limitations of paragraph 3 but in no case shall such
limitations be construed to permit a Contracting State to
decline to supply information solely because it has no
domestic tax interest in such information.
5. In no case shall the provisions of paragraph 3 be construed
to permit a Contracting State to decline to supply
information solely because the information is held by a bank,
other financial institution, nominee or person acting in an
agency or a fiduciary capacity or because it relates to
ownership interests in a person.

Article 26
Limitation on Benefits
Notwithstanding the provisions of any other Article of this
Agreement, a resident of a Contracting State shall not receive
the benefit of any reduction in or exemption from tax provided
for in this Agreement by the other Contracting State if the main
purpose or one of the main purposes of such resident or a person
connected with such resident was to obtain the benefits of this
Agreement.

Article 27
Members of Diplomatic Missions and Consular Posts
Nothing in this Agreement shall affect the fiscal privileges of
members of diplomatic missions or consular posts under the
general rules of international law or under the provisions of
special agreements.

Article 28
Entry into Force
1. Each of the Contracting States shall notify to the other
through diplomatic channels in writing the completion of the
procedures required by its law for the entry into force of
this Agreement. This Agreement shall enter into force on the
date of the later of these notifications.
2. This Agreement shall have effect:
a) in respect of taxes due or withheld at source, on income
payable on or after January 1 of the year next following
the year in which the Agreement enters into force;
b) in respect of other taxes charged, on income of taxable
periods beginning on or after January 1 of the year next
following the year in which the Agreement enters into
force.

Article 29
Termination
1. This Agreement shall continue in effect indefinitely, but
either of the Contracting States may, on or before 30 June in
any year beginning after the expiration of 5 years from the
date of its entry into force, give to the other Contracting
State through the diplomatic channel written notice of
termination.
2. In such event, this Agreement shall cease to be effective:
a) in respect of taxes due or withheld at source, on income
payable on or after January 1 of the year next following
the year in which the notice of termination is given;
b) in respect of other taxes charged, on income of taxable
periods beginning on or after January 1 of the year next
following the year in which the notice of termination is
given.

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

Done in duplicate at Taipei this 13th day of May 2014, in the
Chinese and English languages, both texts being equally
authentic. In the case of discrepancy, the English text shall
prevail.


FOR AND ON BEHALF OF FOR AND ON BEHALF OF
THE GOVERNMENT OF THE GOVERNMENT OF
THE REPUBLIC OF CHINA (TAIWAN) THE REPUBLIC OF KIRIBATI

Sheng-ford Chang Tom Murdoch
Minister of Finance Minister of Finance and Economic
Development