THE TAIPEI REPRESENTATIVE OFFICE IN BELGIUM AND THE BELGIAN
OFFICE, TAIPEI FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME THE
TAIPEI REPRESENTATIVE OFFICE IN BELGIUM AND THE BELGIAN OFFICE,
TAIPEI 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 further
friendship, cooperation and investment,

Have agreed as follows:

CHAPTER I. - SCOPE OF THE AGREEMENT

Article 1 Persons covered
This Agreement shall apply to persons who are residents in one
or both of the territories.

Article 2 Taxes covered
1.This Agreement shall apply to taxes on income imposed in
either of the territories, irrespective of the manner in which
they are levied.
2.There shall be regarded as taxes on income all taxes imposed
on total income, or on elements of income, including taxes on
gains from the alienation of movable or immovable property,
taxes on the total amounts of wages or salaries paid by
enterprises, as well as taxes on capital appreciation.
3.The existing taxes to which the Agreement shall apply are in
particular:
a)in the territory in which the taxation law administered by
the Taxation Agency, Ministry of Finance, Taipei or fiscal
authorities of political subdivisions, is applied :
(1)the profit -seeking enterprise income tax; and
(2)the individual consolidated income tax ,
including the surcharges levied thereon;
b)in the territory in which the taxation law administered by
the Belgian Federal Public Service Finance is applied :
(1)the individual income tax;
(2)the corporate income tax;
(3)the income tax on legal entities;
(4)the income tax on non-residents; and
(5)the supplementary crisis contribution,
including the prepayments and the surcharges on these taxes
and prepayments.
4.The Agreement shall also apply to any identical or
substantially similar taxes that are imposed after the date of
signature of the Agreement in addition to, or in place of, the
existing taxes. The competent authorities of the territories
shall notify each other of any significant changes that have
been made in the taxation laws of the respective territories.

CHAPTER II. - DEFINITIONS

Article 3 General definitions
1.For the purposes of this Agreement, unless the context
otherwise requires :
a)the term "territory" means the territory referred to in
paragraph 3 a) or 3 b) of Article 2, as the case may be;
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
that is treated as a body corporate for tax purposes in the
territory of which it is a resident;
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 and an enterprise
carried on by a resident of the other territory;
e)the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise that has its
place of effective management in a territory, except when
the ship or aircraft is operated solely between places in
the other territory;
f)the term "competent authority" means :
(1)in the case of the territory in which the taxation law
administered by the Taxation Agency, Ministry of Finance,
Taipei is applied, the Director General of the Taxation
Agency or his authorised representative, and
(2)in the case of the territory in which the taxation law
administered by the Belgian Federal Public Service Finance
is applied, the Minister of Finance or his authorised
representative.
2.As regards the application of the Agreement at any time in a
territory, any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has at
that time under the law in force in that territory for the
purposes of the taxes to which the Agreement applies, any
meaning under the applicable tax laws in force in that
territory prevailing over a meaning given to the term under
other laws in force in that territory.

Article 4 Resident
1.For the purposes of this Agreement, the terms " a resident of
a territory" means any person who, under the laws in force in
that territory, is liable to tax therein by reason of his
domicile, residence, place of incorporation, place of
management or any other criterion of a similar nature.
2.A person is not a resident of a territory for the purposes of
this Agreement if that person is liable to tax in that
territory in respect only of income from sources in that
territory, provided that this paragraph shall not apply to
individuals who are residents of the territory referred to in
paragraph 3 a) of Article 2, as long as resident individuals
are taxed only in respect of income from sources in that
territory.
3.Where by reason of the provisions of paragraph 1 an individual
is a resident of both territories, then his status shall be
determined as follows:
a)he shall be deemed to be a resident only of the territory in
which he has a permanent home available to him; if he has a
permanent home available to him in both territories, he
shall be deemed to be a resident only of the territory with
which his personal and economic relations are closer (centre
of vital interests);
b)if the territory in which he has his centre of vital
interests cannot be determined, or if he has not a permanent
home available to him in either territory, he shall be
deemed to be a resident only of the territory in which he
has an habitual abode;
c)if he has an habitual abode in both territories or in
neither of them, the competent authorities of the
territories shall settle the question by mutual agreement.
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 only of the territory
in which its place of effective management is situated.

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, and
f)a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3.A building site or construction, assembly or installation
project constitutes a permanent establishment only if it lasts
more than six months.
4.An enterprise of a territory shall be deemed to have a
permanent establishment in the other territory only if:
a)it carries on supervisory activities in that other territory
for more than six months in connection with a building site
or construction, assembly or installation project which is
being undertaken in that other territory;
b)it furnishes services, including consultancy services,
through employees or other personnel or persons engaged by
the enterprise for such purpose, but only where activities
of that nature continue within that other territory, for the
same or a connected project, for a period or periods
aggregating more than six months within any twelve month
period.
5.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 carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
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.
6.Notwithstanding the provisions of paragraphs 1 and 2, where a
person - other than an agent of an independent status to whom
paragraph 7 applies - is acting on behalf of an enterprise and
has, and habitually exercises, in a territory an authority to
conclude contracts in the name of the enterprise, that
enterprise shall be deemed to have a permanent establishment
in that territory 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 5 d)
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.
7.An enterprise shall not be deemed to have a permanent
establishment in a territory merely because it carries on
business in that territory 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.
8.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 constitute either company a
permanent establishment of the other.

CHAPTER III.- TAXATION OF INCOME

Article 6 Income from immovable property
1.Income derived by a resident of a territory from immovable
property (including income from agriculture or forestry)
situated in the other territory may be taxed in that other
territory.
2.The term "immovable property" shall have the meaning which it
has under the law in force in the territory 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, or the
right to work, mineral deposits, sources and other natural
resources; ships, boats and aircraft shall not be regarded as
immovable property.
3.The provisions of paragraph 1 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 territory shall be taxable
only in that territory unless the enterprise carries on
business in the other territory 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 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 therein, there
shall in each territory 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.
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 territory in which the permanent establishment
is situated or elsewhere.
4.Insofar as it has been customary in a territory 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 territory 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.

Article 8 Shipping and air transport
1.Profits from the operation of ships or aircraft in
international traffic shall be taxable only in the territory
in which the place of effective management of the enterprise
is situated.
2.For the purpose of this Article, profits from the operation in
international traffic of ships or aircraft shall include in
particular:
a)profits derived from the lease by the enterprise of ships or
aircraft on charter fully equipped, manned and supplied,
used in international traffic;
b)profits derived from the lease by the enterprise on a bare
boat charter basis of ships or aircraft used in
international traffic, when such lease is an occasional
source of income for such enterprise;
c)profits derived from the lease of containers and related
equipment by the enterprise, when such lease is
supplementary or incidental to its operations in
international traffic.
3.If the place of effective management of a shipping enterprise
is aboard a ship, then it shall be deemed to be situated in
the territory in which the home harbour of the ship is
situated, or, if there is no such home harbour, in the
territory of which the operator of the ship is a resident.
4.The provisions of paragraph 1 shall also apply to profits from
the participation in a pool, a joint business or an
international operating agency, but only to so much of the
profits so derived as is attributable to the participant in
proportion to its share in the joint operation.

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 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 territory includes in the profits of an enterprise of
that territory - and taxes accordingly - profits on which an
enterprise of the other territory has been charged to tax in
that other territory and the profits so included are profits
which would have accrued to the enterprise of the
first-mentioned territory if the conditions made between the
two enterprises had been those which would have been made
between independent enterprises, then that other territory
shall make such an adjustment as it considers appropriate to
the amount of the tax charged therein on those profits.In
determining such adjustment, due regard shall be had to the
other provisions of this Agreement and the competent
authorities of the territories shall if necessary consult each
other.

Article 10 Dividends
1.Dividends paid by a company which is a resident of a territory
to a resident of the other territory may be taxed in that
other territory.
2.However, such dividends may also be taxed in the territory of
which the company paying the dividends is a resident and
according to the laws in force in that territory, but if the
beneficial owner of the dividends is a resident of the other
territory, the tax so charged shall not exceed 10 per cent 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 -even
paid in the form of interest- which is subjected to the same
taxation treatment as income from shares by the tax
legislation in force in the territory of which the paying
company 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
territory, carries on business in the other territory of which
the company paying the dividends is a resident through a
permanent establishment situated therein, or performs in that
other territory 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 territory derives
profits or income from the other territory, that other
territory 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 territory 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 territory, 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 territory.

Article 11 Interest
1.Interest arising in a territory and paid to a resident of the
other territory may be taxed in that other territory.
2.However, such interest may also be taxed in the territory in
which it arises and according to the laws in force in that
territory, but if the beneficial owner of the interest is a
resident of the other territory, the tax so charged shall not
exceed 10 per cent of the gross amount of the interest.
3.Notwithstanding the provisions of paragraph 2, interest shall
be exempted from tax in the territory in which it arises if it
is:
a)interest paid in respect of a loan granted, guaranteed or
insured or a credit extended, guaranteed or insured by an
approved instrumentality of the other territory which aims
at promoting export, or under a scheme organised by an
authority administrating a territory or a subdivision
thereof or by a local authority in order to promote the
export;
b)interest paid on loans made between banks;
c)interest paid to a public entity of a territory or a central
bank of that territory.
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 or interest regarded as dividends under paragraph 3
of Article 10.
5.The provisions of paragraphs 1, 2 and 3 shall not apply if the
beneficial owner of 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
therein, or performs in that other territory 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 territory when the
payer is a resident of that territory. Where, however, the
person paying the interest, whether he is a resident of a
territory or not, has in a territory 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 territory 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 in force in each territory, due
regard being had to the other provisions of this Agreement.

Article 12 Royalties
1.Royalties arising in a territory and paid to a resident of the
other territory may be taxed in that other territory.
2.However, such royalties may also be taxed in the territory in
which they arise and according to the laws in force in that
territory, but if the beneficial owner of the royalties is a
resident of the other territory, 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 and films or
tapes for television or radio 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 1 and 2 shall not apply if the
beneficial owner of 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
therein, or performs in that other territory 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 territory when the
payer is a resident of that territory. Where, however, the
person paying the royalties, whether he is a resident of a
territory or not, has in a territory 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 territory 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 in force
in each territory, due regard being had to the other
provisions of this Agreement.

Article 13 Capital gains
1.Gains derived by a resident of a territory from the alienation
of immovable property referred to in Article 6 and situated in
the other territory may be taxed in that other territory.
2.Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an
enterprise of a territory has in the other territory or of
movable property pertaining to a fixed base available to a
resident of a territory in the other territory for the purpose
of performing independent personal services, including such
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 territory.
3.Gains 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
the territory in which the place of effective management of
the enterprise is situated.
4.Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2 and 3, shall be taxable only in
the territory of which the alienator is a resident.

Article 14 Independent personal services
1.Income derived by a resident of a territory in respect of
professional services or other activities of an independent
character shall be taxable only in that territory except in
the following circumstances, when such income may also be
taxed in the other territory:
a)if he has a fixed base regularly available to him in the
other territory for the purpose of performing his
activities; in that case, only so much of the income as is
attributable to that fixed base may be taxed in that other
territory; or
b)if he is present in the other territory for a period or
periods amounting to or exceeding in the aggregate 183 days
in the fiscal year concerned; in that case, only so much
income as is derived from his activities performed in that
other territory may be taxed in that other territory.
2.The term “professional services” includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, dentists and
accountants.

Article 15 Dependent personal services
1.Subject to the provisions of Articles 16, 18, and 19,
salaries, wages and other similar remuneration derived by 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 therefrom may be
taxed in that other territory.
2.Notwithstanding the provisions of paragraph 1, remuneration
derived by 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 taxable
period concerned, and
b)the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other territory, and
c)the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other
territory.
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,
may be taxed in the territory in which the place of effective
management of the enterprise is situated.

Article 16 Directors’ fees
1.Directors' fees and other similar payments derived by a
resident of a territory in his capacity as a member of the
board of directors or a similar organ of a company which is a
resident of the other territory may be taxed in that other
territory. The preceding provision shall also apply to
payments derived in respect of the discharge of functions
which, under the laws in force in the territory of which the
company is a resident, are regarded as functions of a similar
nature as those exercised by a person referred to in the said
provision.
2.Remuneration derived by a person referred to in paragraph 1
from a company which is a resident of a territory in respect
of the discharge of day-to-day functions of a managerial or
technical, commercial or financial nature and remuneration
received by a resident of a territory in respect of his
day-to-day activity as a partner of a company, other than a
company with share capital, which is a resident of a
territory, may be taxed in accordance with the provisions of
Article 15, as if such remuneration were remuneration derived
by an employee in respect of an employment and as if
references to the "employer" were references to the company.

Article 17 Artistes and sportsmen
1.Notwithstanding the provisions of Articles 14 and 15, income
derived by a resident of a territory as an entertainer, such
as a theatre, motion picture, radio or television artiste, or
a musician, or as a sportsman, from his personal activities as
such exercised in the other territory, may be taxed in that
other territory.
2.Where income in respect of personal activities exercised by an
entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsman himself 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 sportsman are exercised.

Article 18 Pensions and annuities
1.Pensions and other similar remuneration paid to a resident of
a territory in consideration of past employment, may be taxed
in the territory in which they arise.This provision shall also
apply to annuities and to pensions and other similar
remuneration paid by an entity of a territory under social
security legislation in force in that territory or under a
public scheme organised by that territory in order to
supplement the benefits of that social security legislation.
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.Salaries, wages and other similar remuneration, other than a
pension, paid by an authority administrating a territory or a
subdivision thereof or by a local authority of that territory
to an individual in respect of services rendered to that
authority in the discharge of public or administrative
functions 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 territory and the individual is a resident of
that territory who :
(1)is a citizen or national of that territory; or
2)did not become a resident of that territory solely for the
purpose of rendering the services.
2.The provisions of Articles 15, 16 and 17 shall apply to
salaries, wages and other similar remuneration, in respect of
services rendered in connection with a business carried on by
an authority referred to in paragraph 1.

Article 20 Students
Payments which a student or business apprentice who is or was
immediately before visiting a territory a resident of the other
territory and who is present in the first-mentioned territory
solely for the purpose of his education or training receives for
the purpose of his maintenance, education or training shall not
be taxed in that territory, provided that such payments arise
from sources outside that 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.The provisions of paragraph 1 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 territory, carries on business in the other
territory through a permanent establishment situated therein,
or performs in that other territory 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.
3.Notwithstanding the provisions of paragraphs 1 and 2, items of
income of a resident of a territory not dealt with in the
foregoing Articles of the Agreement and arising in the other
territory may also be taxed in that other territory.

CHAPTER IV.- METHODS FOR ELIMINATION OF DOUBLE TAXATION

Article 22 Elimination of double taxation
1.In the territory referred to in paragraph 3 a) of Article 2,
double taxation shall be avoided as follows :
Where a resident of the territory referred to in paragraph 3
a) of Article 2 derives income from the other territory, the
amount of tax on that income paid in that other territory (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 first-mentioned
territory imposed on that resident. 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.
2.In the territory referred to in paragraph 3 b) of Article 2,
double taxation shall be avoided as follows :
a)Where a resident of the territory referred to in paragraph 3
b) of Article 2 derives elements of income, not being
dividends, interest or royalties, which may be taxed in the
other territory in accordance with the provisions of the
Agreement, and which are taxed there, such elements of
income shall be exempt from tax but, in calculating the
amount of tax on the remaining income of that resident, the
rate of tax which would have been applicable if such income
had not been exempted shall apply.
b)Dividends derived by a company which is a resident of the
territory referred to in paragraph 3 b) of Article 2 from a
company which is a resident of the other territory shall be
exempt from the corporate income tax in the first-mentioned
territory under the conditions and within the limits
provided for in the laws in force in that first-mentioned
territory.
c)Subject to the provisions of the law in force in the
territory referred to in paragraph 3 b) of Article 2
regarding the deduction of taxes paid abroad, where a
resident of that territory derives items of income which are
included in his aggregate income taxable in that territory
and which are interest or royalties, the tax levied in the
other territory on that income shall be allowed as a credit
against the tax of the first-mentioned territory relating to
such income.
d)Where, in accordance with the law in force in the territory
referred to in paragraph 3 b) of Article 2, losses incurred
by an enterprise carried on by a resident of that territory
through a permanent establishment situated in the other
territory, have been effectively deducted from the profits
of that enterprise for its taxation in the first-mentioned
territory, the exemption provided for in subparagraph a)
shall not apply in the first-mentioned territory to the
profits of other taxable periods attributable to that
permanent establishment to the extent that those profits
have also been exempted from tax in the other territory by
reason of compensation for the said losses.

CHAPTER V.- SPECIAL PROVISIONS

Article 23 Non-discrimination
1.Nationals of a territory shall not be subjected in the other
territory 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
territory in the same circumstances, in particular with
respect to residence, are or may be subjected.This provision
shall, notwithstanding the provisions of Article 1, also apply
to persons who are not residents of one or both of the
territories.
2.The taxation on a permanent establishment which an enterprise
of a territory has in the other territory shall not be less
favourably levied in that other territory than the taxation
levied on enterprises of that other territory carrying on the
same activities.This provision shall not be construed as
obliging a territory to grant to residents of the other
territory any personal allowances, reliefs and reductions for
taxation purposes on account of civil status or family
responsibilities which it grants to residents in its territory.
3.Except where the provisions of paragraph 1 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 territory to a resident of the other territory
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
territory.
4.Enterprises of a territory, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by one or
more residents of the other territory, shall not be subjected
in the first-mentioned territory 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 first-mentioned
territory are or may be subjected.
5.The provisions of this Article shall apply to taxes which are
the subject of this Agreement.

Article 24 Mutual agreement procedure
1.Where a person considers that the actions in one or both of
the territories result or will result for him in taxation not
in accordance with the provisions of this Agreement, he may,
irrespective of the remedies provided by the domestic law in
force in those territories, present his case to the competent
authority of the territory of which he is a resident, or if
his case comes under paragraph 1 of Article 23, to that of the
territory of which he is considered to be 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 the 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
territory, with a view to the avoidance of taxation which is
not in accordance with the Agreement.Any agreement reached
shall be implemented notwithstanding any time limits in the
domestic law in force in the territories.
3.The competent authorities of the territories shall endeavour
to resolve by mutual agreement any difficulties or doubts
arising as to the interpretation or application of the
Agreement.
4.The competent authorities of the territories shall agree on
administrative measures necessary to carry out the provisions
of the Agreement and particularly on the proofs to be
furnished by residents of either territory in order to benefit
in the other territory from the exemptions or reductions of
tax provided for in the Agreement.
5.The competent authorities of the territories shall communicate
directly with each other for the application of the Agreement.

Article 25 Exchange of information
1.The competent authorities of the territories shall exchange
such information as is useful for carrying out the provisions
of this Agreement or of the domestic laws in force in the
territories concerning taxes of every kind and description
imposed on behalf of the territories, insofar as the taxation
thereunder is not contrary to the Agreement. The exchange of
information is not restricted by Articles 1 and 2 Any
information received by a competent authority of a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws in force in 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 referred to in the first sentence. 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
laws in force in and the administrative practice of that or
the other territory;
b)to supply information which is not obtainable under the laws
in force in either territory or in the normal course of the
administration of either territory;
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).

Article 26 Aid in recovery
1.Each of the territories shall endeavor to collect, as if it
were its own tax, any tax referred to in Article 2, which has
been imposed by the other territory and the collection of
which is necessary to ensure that any exemption or reduction
of tax granted under this Agreement by that other territory
shall not be enjoyed by persons not entitled to such benefits.
2.The provisions of this Article shall in no case be construed
so as to impose on the requested territory the obligation to
apply any means of enforcement which are not authorized by the
laws in force in that or in the other territory or to take
measures which would be contrary to public policy (ordre
public).

Article 27 Limitation on benefits
Notwithstanding the provisions of any other Article of this
Agreement, a resident of a territory shall not receive the
benefit of any reduction in or exemption from tax provided for
in the Agreement by the other territory 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.

CHAPTER VI.- FINAL PROVISIONS

Article 28 Entry into force
1.The Belgian Office, Taipei and the Taipei Representative
Office in Belgium shall notify each other in writing about the
completion of the procedures required for the entry into force
of this Agreement in their respective territories.The
Agreement shall enter into force from the date on which the
later of these written notifications is received.
2.The provisions of the Agreement shall have effect :
a)in respect of taxes due or withheld at source on income
credited or 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
This Agreement shall remain in force indefinitely, but the
Belgian Office, Taipei and the Taipei Representative Office in
Belgium may terminate the Agreement, by giving written notice of
termination not later than the 30th June of any calendar year
from the fifth year following that in which the Agreement enters
into force. In such event, the Agreement shall cease to have
effect:
a)in respect of taxes due or withheld at source on income
credited or 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 authorised
thereto, have signed this Agreement.

DONE in duplicate at Brussels, this 13th day of October 2004, in
the English language.

FOR THE TAIPEI FOR THE BELGIAN OFFICE,
REPRESENTATIVE OFFICE IN BELGIUM: TAIPEI:
C. J. CHEN, Hugues MIGNOT,


PROTOCOL
At the moment of signing the Agreement between the Belgian
Office, Taipei and the Taipei Representative Office in Belgium
for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income, the undersigned
have agreed upon the following provisions which shall form an
integral part of the Agreement.
1.Ad Article 5, paragraph 4 and Article 7 :
It is understood that where activities are deemed to be a
permanent establishment under paragraph 4 of Article 5, only
profits attributable to the activities performed through
employees or other personnel or persons present in that other
territory may be taxed in that other territory.
2.Ad Article 11, paragraph 3:
It is understood that the provision of subparagraph a) shall
apply,
a)in the case of the territory in which the taxation law is
administered by the Belgian Federal Public Service Finance:
* to interest of a loan or a credit for which a financial
support is granted after advice of the Committee for
financial support to export (“Finexpo”);
* to interest of a loan or a credit granted by the
Association for the coordination of medium-term financing
of Belgian export (“Creditexport”);
* to interest of a loan or a credit insured by the National
Office of Del Credere;.
b)in the case of the territory in which the taxation law is
administered by the Taxation Agency, Ministry of Finance,
Taipei, to interest received by the instrumentalities which
aim at promoting export and are approved by that Agency.
3.Ad Article 15, paragraph 1 :
It is understood that an employment is exercised in a
territory when the activity in respect of which the salaries,
wages and other remuneration are paid, is effectively carried
on in that territory, this means when the employee is
physically present in that territory for carrying on this
activity there.
4.Ad Article 22, paragraph 2 a) :
Elements of income received by a resident of the territory in
which the taxation law administered by the Belgian Federal
Public Service Finance is applied, shall not be deemed to be
taxed in the other territory when such income is not included
in the basis on which tax is due in that other
territory.Consequently elements of income which are not
taxable or are exempted in virtue of the legislation in force
in that other territory, shall not be considered to be taxed.

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

DONE in duplicate at Brussels, this 13th day of October 2004, in
the English language.

FOR THE TAIPEI FOR THE BELGIAN OFFICE,
REPRESENTATIVE OFFICE IN BELGIUM: TAIPEI:
C. J. CHEN, Hugues MIGNOT,