THE TAIPEI REPRESENTATIVE OFFICE IN THE NETHERLANDS (TRON)
and
THE NETHERLANDS TRADE AND INVESTMENT OFFICE IN TAIPEI (NTIO)
DESIRING to conclude an Agreement for the avoidance of double t-
axation and the prevention of fiscal evasion with respect to ta-
xes on income,
Have agreed as follows:

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

ARTICLE 2
TAXES COVERED
1.This Agreement shall apply to taxes on income imposed on beha-
lf of each territory, or its subdivisions or local authorities
, irrespective of the way they are levied.
2 The existing taxes to which the Agreement shall apply are:
a) in the territory in which the taxation law administered by t-
he Department of Taxation, Ministry of Finance, Taipei, is a-
pplied:
(i) the profit seeking enterprise income tax;
(ii) the individual consolidated income tax;
b) in the territory in which the taxation law administered by t-
he Netherlands Ministry of Finance is applied:
(i) income tax, de inkomstenbelasting;
(ii) wages tax, de loonbelasting;
(iii) company tax, de vennootschapsbelasting, including the
Government share in the net profits of the exploitati-
on of natural resources levied pursuant to the Mijnwet
1810 (the Mining Act of 1810) with respect to concess-
ions issued from 1967, or pursuant to the Mijnwet Con-
tinentaal Plat 1965 (the Netherlands Continental Shelf
Mining Acting Act of 1965);
(iv) dividend tax, de dividendbelasting.
3.This Agreement shall also apply to any identical or substanti-
ally similar taxes which are imposed after the date of signat-
ure of the Agreement in addition to, or in place of, the exis-
ting taxes. The competent authorities shall notify each other
of any significant changes which have been made in their resp-
ective taxation laws.

ARTICLE 3
GENERAL DEFINITIONS
1.For the purposes of this Agreement, unless the context otherw-
ise requires:
a) the term "territory" means the territory referred to in subp-
aragraph 2(a) or 2(b) of Article 2, as the case may be. The
term "territory" shall not include ships of an enterprise of
a territory;
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 wh-
ich is treated as a body corporate for tax purposes;
d) the terms "enterprise of a territory" and "enterprise of the
other territory" mean respectively an enterprise carried on
by a resident of a territory and an enterprise carried on by
a resident of the other territory;
e) the term "international traffic" means any transport by a sh-
ip 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 t-
erritory;
f) the term "competent authority" means, in the case of the ter-
ritory in which the taxation law administered by the Departm-
ent of Taxation, Ministry of Finance, Taipei is applied, the
Department of Taxation or its authorized representative, in
the case of the territory in which the taxation law administ-
ered by the Netherlands Ministry of Finance is applied, the
Ministry of Finance of the Netherlands or its authorized rep-
resentative.
2.As regards the application of the Agreement at any time in a
territory, any term not defined therein shall, unless the con-
text otherwise requires, have the meaning that it has at that
time under the laws of that territory for the purposes of the
taxes to which the Agreement applies, any meaning under the a-
pplicable tax laws of that territory prevailing over a meaning
given to the term under other laws of that territory.

ARTICLE 4
RESIDENT
1.For the purposes of this Agreement, the term "resident of a t-
erritory" means any person who, under the laws of that territ-
ory, is liable to tax therein by reason of his domicile, resi-
dence, place of management, place of incorporation or any oth-
er criterion of a similar nature, and also includes the terri-
tories referred to in subparagraphs 2(a) and 2(b) of Article 2
and any political subdivision or local authority thereof.
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 territ-
ory in respect only of income from sources in that territory,
provided that this paragraph shall not apply to individuals w-
ho are residents of the territory referred to in subparagraph
2 (a) of Article 2 as long as resident individuals are taxed
o-
nly in respect of income from sources in that territory.
3.Where by reason of the preceding provisions of this Article 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 p-
ermanent home available to him in both territories, he shall
be deemed to be a resident of the territory with which his pe-
rsonal and economic relations are closer (centre of vital int-
erests);
b) if the territory in which he has his centre of vital interes-
ts cannot be determined, or if he has not a permanent home a-
vailable 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 paragraphs 1 and 2 a per-
son other than an individual is a resident of both territories
, then it shall be deemed to be a resident only of the territ-
ory in which its place of effective management is situated.

ARTICLE 5
PERMANENT ESTABLISHMENT
1.For the purposes of this Agreement, the term "permanent estab-
lishment" means a fixed place of business through which the b-
usiness 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 e-
xtraction of natural resources.
3.The term "permanent establishment" likewise encompasses:
a) a building site, a construction, assembly or installation pr-
oject, but only where such site or project lasts for a period
of more than six months；
b) the furnishing of services, including consultancy services,
by an enterprise through employees or other personnel engaged
by the enterprise for such purpose, but only where activities
of that nature continue (for the same or a connected project)
within the territory for a period or periods aggregating more
than 183 days within any 12-month 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, dis-
play or delivery of goods or merchandise belonging to the en-
terprise;
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 an-
other 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 activi-
ty of a preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in sub-paragraphs 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 1 and 2, where a
person other than an agent of an independent status to whom p-
aragraph 6 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 enterp-
rise shall be deemed to have a permanent establishment in that
territory in respect of any activities which that person unde-
rtakes for the enterprise, unless the activities of such pers-
on are limited to those mentioned in paragraph 4 which, if ex-
ercised through a fixed place of business, would not make this
fixed place of business a permanent establishment under the p-
rovisions of that paragraph.
6.An enterprise shall not be deemed to have a permanent establi-
shment 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.
7.The fact that a company which is a resident of a territory co-
ntrols or is controlled by a company which is a resident of t-
he other territory, or which carries on business in that other
territory (whether through a permanent establishment or other-
wise), shall not of itself constitute either company a perman-
ent establishment of the other.

ARTICLE 6
INCOME FROM IMMOVABLE PROPERTY
1.Income derived by a resident of a territory from immovable pr-
operty (including income from agriculture or forestry) situat-
ed 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 of the territory in which the property in q-
uestion is situated. The term shall in any case include prope-
rty accessory to immovable property, livestock and equipment
used in agriculture and forestry, rights to which the provisi-
ons 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, mi-
neral deposits, sources and other natural resources; ships, b-
oats and aircraft shall not be regarded as immovable property.
Exploration and exploitation rights of natural resources shall
be regarded as immovable property of the territory where these
rights may be exercised.
3.The provisions of paragraph 1 shall apply to income derived f-
rom the direct use, letting, or use in any other form of immo-
vable 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 independe-
nt 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 busin-
ess in the other territory through a permanent establishment
situated therein. If the enterprise carries on business as af-
oresaid, the profits of the enterprise may be taxed in the ot-
her 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 thr-
ough a permanent establishment situated therein, there shall
in each territory be attributed to that permanent establishme-
nt the profits which it might be expected to make if it were a
distinct and separate enterprise engaged in the same or simil-
ar activities under the same or similar conditions and dealing
wholly independently with the enterprise of which it is a per-
manent establish ment.
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 execut-
ive and general administrative expenses so incurred, whether
in the territory in which the permanent establishment is situ-
ated 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 ent-
erprise to its various parts, nothing in paragraph 2 shall pr-
eclude apportionment as may be customary; the method of appor-
tionment 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 purpose 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 suff-
icient reason to the contrary.
7.Where profits include items of income which are dealt with se-
parately in other Articles of this Agreement, then the provis-
ions 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
internation-
al 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 of
ships or aircraft in international traffic shall include:
a) profits from the use, maintenance or rental of containers and
related equipment; and
b) profits from the rental of ships or aircraft on a full time,
voyage or bare boat basis; if such use, maintenance or rental
is incidental to the operation of ships or aircraft in inter-
national traffic.
3.The provisions of paragraph 1 shall also apply to profits from
the participation in a pool, a joint business or an internati-
onal operating agency, but only so much of the profits so der-
ived as is attributable to the participant in proportion to i-
ts share in the joint operation.

ARTICLE 9
ASSOCIATED ENTERPRISES
1.Where
a) an enterprise of a territory participates directly or indire-
ctly in the management, control or capital of an enterprise
of the other territory, or
b) the same persons participate directly or indirectly in the m-
anagement, 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 th-
ose which would be made between independent enterprises, then
any profits which would, but for those conditions, have accr-
ued to one of the enterprises, but, by reason of those condi-
tions, have not so acrued, may be included in the profits of
that enterprise and taxed accordingly.
2.Where the competent authority of a territory includes in the
profits of an enterprise of that territory - and taxes accord-
ingly - profits on which an enterprise of the other territory
has been charged to tax in that other territory and the profi-
ts so included are profits which would have accrued to the en-
terprise of the first-mentioned territory if the conditions m-
ade between the two enterprises had been those which would ha-
ve been made between independent enterprises, then the compet-
ent authority of the other territory shall make an ap-
propriate adjustment 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 c-
onsult 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 oth-
er territory.
2.However, such dividends may also be taxed in the territory of
which the company paying the dividends is a resident and acco-
rding to the laws of that territory, but if the beneficial ow-
ner of dividends is a resident of the other territory, the tax
so charged shall not exceed 10% of the gross amount of the di-
vidends.
3.The competent authorities of the territories shall by mutual
agreement settle the mode of application of paragraph 2.
4.The provisions of paragraph 2 shall not affect the taxation of
the company in respect of the profits out of which the divide-
nds are paid.
5.The term "dividends" as used in this Article means income from
shares, or other rights, not being debt-claims, participating
in profits, as well as income from other corporate rights whi-
ch is subjected to the same taxation treatment as income from
shares by the taxation laws of the territory of which the com-
pany making the distribution is a resident.
6.The provisions of paragraphs 1 and 2 shall not apply if the b-
eneficial owner of the dividends, being a resident of a terri-
tory, carries on business in the other territory of which the
company paying the dividends is a resident, through a permane-
nt establishment situated therein, or performs in that other
territory independent personal services from a fixed base sit-
uated therein, and the holding in respect of which the divide-
nds are paid is effectively connected with such permanent est-
ablishment or fixed base. In such case the provisions of Arti-
cle 7 or Article 14, as the case may be, shall apply.
7.Where a company which is a resident of a territory derives pr-
ofits or income from the other territory, no tax may be impos-
ed in that other territory on the dividends paid by the compa-
ny, 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 div-
idends paid or the undistributed profits consist wholly or pa-
rtly 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 of 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%
percent of the gross amount of the interest.
3.Notwithstanding the provisions of paragraph 2, interest arisi-
ng in a territory and paid to a resident of the other territo-
ry who is the beneficial owner thereof shall be taxable only
in that other territory to the extent that such interest:
a) is paid in respect of a bond, debenture or other similar obl-
igation of a public entity of a territory, or of a subdivisi-
on or local authority thereof; or
b) is paid to the other territory or a subdivision or local aut-
hority thereof, a central bank of that other territory or to
any instrumentality (including a financial institution) cont-
rolled by that territory or subdivision or local authority t-
hereof; or
c) is paid between banks.
4.The competent authorities of the territories shall by mutual
agreement settle the mode of application of paragraphs 2 and 3
.
5.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 deb-
tor's profits, and in particular, income from public securiti-
es and income from bonds or debentures, including premiums and
prizes attaching to such securities, bonds or debentures. Pen-
alty charges for late payment shall not be regarded as intere-
st for the purpose of this Article.
6.The provisions of paragraphs 1, 2 and 3 shall not apply if the
beneficial owner of the interest, being a resident of a terri-
tory, carries on business in the other territory in which the
interest arises, through a permanent establishment situated t-
herein, or performs in that other territory independent perso-
nal 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 c-
ase may be, shall apply.
7.Interest shall be deemed to arise in a territory when the pay-
er 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 fix-
ed 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 perman-
ent establishment or fixed base is situated.
8.Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some oth-
er person, the amount of the interest, having regard to the d-
ebt-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 Arti-
cle shall apply only to the last-mentioned amount. In such ca-
se, the excess part of the payments shall remain taxable acco-
rding to the laws of 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, the royalties may also be taxed in the territory in
which they arise and according to the laws of 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 competent authorities of the territories shall by mutual
agreement settle the mode of application of paragraph 2.
4.The term "royalties" as used in this Article means payments of
any kind received as a consideration for the use of, or the r-
ight to use, any copyright of literary, artistic or scientific
work including cinematography films or films or tapes used for
radio or television broadcasting, any patent, trade mark, des-
ign or model, plan, secret formula or process, or for informa-
tion concerning industrial, commercial, or scientific experie-
nce.
5.The provisions of paragraphs 1 and 2 shall not apply if the b-
eneficial owner of the royalties, being a resident of a terri-
tory, carries on business in the other territory in which the
royalties arise, through a permanent establishment situated t-
herein, or performs in that other territory independent perso-
nal services from a fixed base situated therein, and the right
or property in respect of which the royalties are paid is eff-
ectively 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.Royalties shall be deemed to arise in a territory when the pa-
yer is a resident of that territory. Where, however, the pers-
on paying the royalties, whether he is a resident of a territ-
ory 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 sh-
all 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 oth-
er 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 pro-
visions of this Article shall apply only to the last-mentioned
amount. In such case, the excess part of the payments shall r-
emain taxab le according to the laws of each territory, due r-
egard 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.Where a resident of a territory owns all or virtually all of
the shares in a company which is a resident of the other terr-
itory (other than a company of which the shares are quoted on
a stock exchange) and the property of such company consists p-
rincipally of immovable property situated in that other terri-
tory, any gains derived by such resident from the alienation
of shares in that company may be taxed in that other territo-
ry. For the purpose of this paragraph the term "immovable pro-
perty" does not include immovable property in which the busin-
ess of the company is carried on. The provision of this parag-
raph shall not apply if such gains are derived in the course
of a corporate reorganization, amalgamation, division or simi-
lar transaction.
3.Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an e-
nterprise of a territory has in the other territory or of mov-
able property pertaining to a fixed base available to a resid-
ent 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 t-
axed in that other territory.
4.Gains from the alienation of ships or aircraft operated in in-
ternational traffic or movable property pertaining to the ope-
ration of such ships or aircraft, shall be taxable only in the
territory in which the place of effective management of the e-
nterprise is situated.
5.Gains from the alienation of any property other than that ref-
erred to in paragraphs 1, 2, 3 and 4 shall be taxable only in
the territory of which the alienator is a resident.
6.Notwithstanding the provisions of paragraph 5, gains from the-
alienation of shares or other corporate rights in a company r-
esident under the laws of that territory, and gains from the
alienation of any other securities which are subjected in that
territory to the same taxation treatment as gains from the al-
ienation of such shares or other corporate rights, derived by
an individual who has been a resident of a territory, and who
has become a resident of the other territory, may be taxed in
the firstmentioned territory if the alienation of the shares,
other corporate rights or securities at any time during the t-
en years next following the date on which the individual has
ceased to be a resident of the first-mentioned territory.

ARTICLE 14
INDEPENDENT PERSONAL SERVICES
1.Income derived by an individual who is a resident of a territ-
ory in respect of professional services or other independent
activities shall be taxable only in that territory unless such
services are performed in the other territory and:
a) the individual is present in the other territory for a period
or periods exceeding in the aggregate 183 days in any twelve
month period commencing or ending in the fiscal year of inco-
me concerned; or
b) a fixed base is regularly available to the individual in the
other territory for the purpose of performing the individual'
s activities.
If the provisions of subparagraphs (a) or (b) are satisfied,
the income may be taxed in that other territory but only so
much of it as is attributable to activities performed during
such period or periods or from that fixed base.
2.The term "professional services" includes especially independ-
ent scientific, literary, artistic, educational or teaching a-
ctivities 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, 19, and 21, the
salaries, wages and other similar remuneration derived by a r-
esident of a territory in respect of an employment shall be t-
axable only in that territory unless the employment is exerci-
sed 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 d-
erived by a resident of a territory in respect of an employme-
nt 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 t-
welve-month period commencing or ending in the fiscal year c-
oncerned, 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, rem-
uneration 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 manage-
ment of the enterprise is situated.

ARTICLE 16
DIRECTORS' AND SUPERVISORS' FEES
Directors' and supervisors' fees and other similar remuneration
derived by a resident of a territory in his capacity as a member
of the board of directors (bestuurder) or supervisors (commissa-
ris) of a company which is a resident of the other territory ma-
y be taxed in that other territory.

ARTICLE 17
ARTISTES AND SPORTSPERSONS
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 sportsperson, 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 sportsperson in his capacity as such accrues
not to the entertainer or sportsperson himself but to another
person, that income may, notwithstanding the provisions of Ar-
ticles 7, 14 and 15, be taxed in the territory in which the a-
ctivities of the entertainer or sportsperson are exercised.
3.The provisions of paragraphs 1 and 2 shall not apply to income
derived from activities exercised in a territory by an entert-
ainer or a sportsperson if the visit to that territory is who-
lly or mainly supported by public funds of the other territory
as recognized by the territories. In such case, the income sh-
all be taxable only in the territory of which the entertainer
or sportsperson is a resident.

ARTICLE 18
PENSIONS, ANNUITIES AND
SOCIAL SECURITY PAYMENTS
1.Subject to the provisions of paragraph 2 of Article 19, pensi-
ons and other similar remuneration paid to a resident of a te-
rritory in consideration of past employment and any annuity,
shall be taxable only in that territory if the pensions and o-
ther similar remuneration and annuities as such are subject to
the normal rate of income tax in that territory.
2.However, where such remuneration is not of a periodical nature
and it is paid in consideration of past employment in the oth-
er territory, or where instead of the right to annuities a lu-
mp sum is paid, this remuneration or this lump sum shall be t-
axable only in that other territory.
3.Any pension and other payment paid out under the provisions of
a social security system of a territory to a resident of the
other territory shall be taxable only in the first-mentioned
territory.
4.The term "annuity" means a stated sum payable periodically at
stated times during life or during a specified or ascertainab-
le period of time under an obligation to make the payments in
return for adequate and full consideration in money or money's
worth.

ARTICLE 19
PUBLIC SERVICE
1.Salaries, wages and other similar remuneration, other than a
pension, paid by a governing authority of a territory or a su-
bdivision of that territory or a local authority of that terr-
itory to an individual in respect of services rendered to that
territory or subdivision or authority shall be taxable only in
that territory. However, such salaries, wages and other simi-
lar remuneration shall be taxable only in the other territory
if the services are rendered in that other territory and the
individual is a resident of that other territory who:
a) is a citizen or national in that territory; or
b) did not become a resident of that territory solely for the p-
urpose of rendering the services.
2.Any pension paid by, or out of funds created by, a governing
authority of a territory or by a local authority of that terr-
itory to an individual in respect of services rendered to that
territory or subdivision or authority shall be taxable only in
that territory. However, such pension shall be taxable only in
the other territory if the individual is a resident of, and a
citizen or national of, that territory.
3.The provisions of Article 15, 16, 17, and 18, shall apply to
salaries, wages and other similar remuneration, and to pensio-
ns, in respect of services rendered in connection with a busi-
ness carried on by a governing authority of a territory or a
subdivision of that territory or by a local authority of that
territory.

ARTICLE 20
STUDENTS AND TRAINEES
Payments which a student, or an apprentice or trainee who is or
was immediately before visiting a territory a resident of the o-
ther territory and who is present in the first-mentioned territ-
ory 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 ari-
se from sources outside that territory.

ARTICLE 21
PROFESSORS AND RESEARCHERS
1.An individual who visits a territory for the purpose of teach-
ing or carrying out research at a university, college or other
recognized educational institution in that territory and who
is a resident of the other territory, shall be exempted from
taxation in the first-mentioned territory on remuneration for
such teaching or research for a period not exceeding two years
from the date of his first visit for that purpose.
2.The provisions of paragraph 1 of this Article shall not apply
to income from research if such research is undertaken not in
the public interest but primarily for the private benefit of a
specific person or persons.

ARTICLE 22
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 reside-
nt of a territory, carries on business in the other territory
through a permanent establishment situated therein, or perfor-
ms in that other territory independent personal services from
a fixed base situated therein, and the right or property in r-
espect of which the income is paid is effectively connected w-
ith 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 23
ELIMINATION OF DOUBLE TAXATION
1.In the case of a resident of the territory referred to in sub-
paragraph 2(a) of Article 2 double taxation shall be avoided
as follows:
Where a resident of the territory referred to in subparagraph
2(a) of Article 2 derives income from the other territory, the
amount of tax on that income payable 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 acco-
rdance with the provisions of this Agreement, shall be credit-
ed against the tax levied in the first-mentioned territory im-
posed on that resident. The amount of credit, however, shall
not exceed the amount of the tax in the first-mentioned terri-
tory on that income computed in accordance with its taxation
laws and regulations.
2.In the case of a resident of the territory referred to in sub-
paragraph 2(b) of Article 2, double taxation shall be avoided
as follows:
a) when imposing tax on its residents, this territory may inclu-
de in the basis upon which such taxes are imposed the items
of income which, according to the provisions of this Agreeme-
nt, may be taxed in the territory referred to in subparagraph
2 (a) of Article 2;
b) where a resident of the territory referred to in subparagraph
2(b) of Article 2 derives income which, in accordance with t-
his Agreement, may be taxed in the territory referred to in
subparagraph 2(a) of Article 2, the first-mentioned territory
shall allow as a deduction from the tax on the income of that
resident, an amount equal to the tax paid in the other terri-
tory. Such deduction shall, however, not exceed that part of
the tax, as computed before the deduction is given, which is
attributable to the income which according to the provisions
of this Agreement may be taxed in the first-mentioned territ-
ory;
c) the provisions of subparagraph b shall not apply, if and ins-
ofar as in the territory referred to in subparagraph 2(b) of
Article 2 under the provisions of the domestic law for the a-
voidance of double taxation applicable in that territory, it-
ems of income which according to this Agreement may be taxed
in the other territory are exempt in the first-mentioned te-
rritory. In such case the first-mentioned territory shall e-
xempt such items of income by allowing a reduction of its tax
computed in conformity wih the provisions of the domestic law
for the avoidance of double taxation applicable in the first-
mentioned territory.

ARTICLE 24
NON - DISCRIMINATION
1.Nationals of a territory shall not be subjected in the other
territory to any taxation or any requirement connected therew-
ith, which is other or more burdensome than the taxation and
connected requirements to which nationals of that other terri-
tory in the same circumstances, 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 f-
avourably levied in that other territory than the taxation le-
vied on enterprises of that other territory carrying on the s-
ame activities. This provision shall not be construed as obli-
ging the competent authority of a territory to grant to resid-
ents of the other territory any personal allowances, reliefs
and reductions for taxation purposes on account of civil stat-
us or family responsibilities which it grants to its own resi-
dents.
3.Except where the provisions of paragraph 1 of Article 9, para-
graph 8 of Article 11, or paragraph 7 of Article 12, apply, i-
nterest, royalties, and other disbursements paid by an enterp-
rise of a territory to a resident of the other territory shall
, for the purposes 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 requi-
rement connected therewith which is other or more burdensome
than the taxation and connected requirements to which other s-
imilar enterprises of the first-mentioned territory are or may
be subjected.
5.In this Article the term "taxation" means taxes which are the
subject of this Agreement.

ARTICLE 25
MUTUAL AGREEMENT PROCEDURE
1.Where a person considers that the actions of competent author-
ities of 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 of those territories, present his case to
the competent authority of the territory of which he is a res-
ident or, if his case comes under paragraph 1 of Article 24,
to that of the territory of which he is a national. The case
must be presented within three years from the first notificat-
ion of the action resulting in taxation not in accordance with
the provisions of the Agreement.
2.The competent authority shall endeavour, if the objection app-
ears to it to be justified and if it is not itself able to ar-
rive 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 acco-
rdance with the Agreement. Any agreement reached shall be im-
plemented notwithstanding any time limits in the domestic law
of the territories.
3.The competent authorities of the territories shall endeavour
to resolve by mutual agreement any difficulties or doubts ari-
sing as to the interpretation or application of the Agreement.
They may also consult together for the elimination of double
taxation in cases not provided for in the Agreement.
4.The competent authorities of the territories may communicate
with each other directly for the purpose of reaching an agree-
ment in the sense of the preceding paragraphs.

ARTICLE 26
EXCHANGE OF INFORMATION
1.The competent authorities of the territories shall exchange s-
uch information as is necessary for carrying out the provisio-
ns of this Agreement. Any information so exchanged shall be t-
reated as secret and shall be disclosed only to persons or au-
thorities (including courts and administrative bodies) concer-
ned with the assessment or collection of, the enforcement or
prosecution in respect of, or the determination of appeals in
relation to, the taxes covered by the Agreement. Such persons
or authorities shall use the information only for such purpos-
es. They may disclose the information in public court proceed-
ings 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 ob-
ligation:
a) to carry out administrative measures at variance with the la-
ws and the administrative practice of that or of the other t-
erritory;
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 territory;
c) to supply information which would disclose any trade, busine-
ss, industrial, commercial or professional secret or trade p-
rocess, or information, the disclosure of which would be con-
trary to public policy (ordre public).
3.This Article shall not affect the rights and safeguards avail-
able to persons under the laws or the administrative practice
in the territory requested to exchange information under para-
graph 1.
4.The competent authorities of the territories shall by mutual
agreement settle the mode of application of this Article.

ARTICLE 27
ENTRY INTO FORCE
1.This Agreement shall enter into force on the later of the dat-
es on which the Taipei Representative Office in the Netherlan-
ds, and the Netherlands Trade and Investment Office in Taipei
notify each other in writing that the processes required for
the entry into force of this Agreement in their respective te-
rritories have been complied with.
2.This Agreement shall have effect:
a) in respect of taxes withheld at source, for amounts paid or
credited on or after the first day of the second month follo-
wing the entry into force of the Agreement; and
b) in respect of other taxes on income, for taxable years begin-
ning on or after 1 January in the year next following the en-
try into force of the Agreement.

ARTICLE 28
TERMINATION
This Agreement shall remain in force indefinitely, but the Taip-
ei Representative Office in the Netherlands, and the Netherlands
Trade and Investment Office in Taipei may terminate the Agreeme-
nt, by giving written notice of termination on or before 30 June
of any calendar year following after the period of five years f-
rom the entry into force of the Agreement.
In such case, the Agreement shall cease to have effect for taxa-
ble years beginning on or after 1 January in the year next foll-
owing that in which the notice of termination is given.
IN WITNESS WHEREOF the undersigned, being duly authorized there-
to, have signed this Agreement.
DONE in duplicate in the English language at the Hague on this
twenty-seventh day of February 2001

FOR THE TAIPEI REPRESENTATIVE OFFICE IN THE NETHERLANDS FOR THE
NETHERLANDS TRADE AND INVESTMENT OFFICE IN TAIPEI
PROTOCOL
At the moment of signing the Agreement for the avoidance of dou-
ble taxation and the prevention of fiscal evasion with respect
to taxes on income, this day concluded between the TRON and the
NTIO, the undersigned have agreed that the following provisions
shall form an integral part of the Agreement.

I. Ad paragraph 1, subparagraph c of Article 3
In case an entity that is treated as a body corporate for ta-
x purposes is liable as such to tax in a territory, but the
income of that entity is taxed in the other territory respec-
tively as income of the participants in that entity, the com-
petent authorities shall take such measures that on the one
hand no double taxation remains, but on the other hand it is
prevented that merely as a result of application of the Agre-
ement income is (partly) not subject to tax.

II. Ad Article 4
1.Funds established by public entities of a territory for mutual
benefits for the employees of these public entities, and pens-
ion funds recognized as such and controlled by statutory prov-
isions in a territory, and of which the income is generally e-
xempt from tax in that territory, shall be regarded as a resi-
dent of that territory.
2.An individual living aboard a ship without any real domicile
in either of the territories shall be deemed to be a resident
of the territory in which the ship has its home harbour.

III. Ad Article 7
In respect of paragraphs 1 and 2 of Article 7, where an enterpr-
ise of a territory sells goods or merchandise or carries on bus-
iness in the other territory through a permanent establishment
situated therein, the profits of that permanent establishment s-
hall not be determined on the basis of the total amount received
by the enterprise, but shall be determined only on the basis of
that portion of the income of the enterprise that is attributab-
le to the actual activity of the permanent establishment in res-
pect of such sales of business. Specifically, in the case of c-
ontracts for the survey, supply, installation or construction of
industrial, commercial or scientific equipment or premises, or
of public works, when the enterprise has a permanent establishm-
ent, the profits attributable to such permanent establishment s-
hall not be determined on the basis of the total amount of the
contract, but shall be determined only on the basis of that part
of the contract that is effectively carried out by the permanent
establi shment in the territory where the permanent establishme-
nt is situated. The profits related to that part of the contract
which is carried out by the head office of the enterprise shall
be taxable only in the territory of which the enterprise is a r-
esident.

IV. Ad Article 9
It is understood, however, that the mere fact that associated e-
nterprises have concluded arrangements, such as costsharing arr-
angements or general services agreements, for or based on the a-
llocation of executive, general administrative, technical and c-
ommercial expenses, research and development expenses and other
similar expenses, is not enough to presume a condition as meant
in paragraph 1 of Article 9. However, this does not prevent one
of the territories from checking the above-mentioned arrangemen-
ts or conditions as meant in this paragraph.

V. Ad Articles 10 and 13
It is understood that income received in connection with the (p-
artial) liquidation of a company or a purchase of own shares by
a company is treated as income from shares and not as capital g-
ains.

VI. Ad Article 11
It is understood that an instrumentality (including a financial
institution) is controlled by a territory or subdivision or loc-
al authority thereof if that territory or subdivision or local
authority thereof holds at least 50 per cent of the capital of
that instrumentality.

VII. Ad Article 18
Pensions and other similar remuneration or annuities paid to a
resident of a territory shall be considered to be subject as su-
ch to the normal rate of income tax if:
a) at least 90 per cent of the gross amount of the pensions and
other similar remuneration or annuities is effectively taxed
at the generally applicable rate for income derived from dep-
endent personal services; or b) the total amount of the pens-
ions and other similar remuneration or annuities does not ex-
ceed the sum of 20 000 Euro in any calendar year.

VIII. Ad Article 18, paragraphs 2 and 3, and Article 19, paragr-
aphs 1 and 2
It is understood that the provisions of paragraph 2 and 3 of Ar-
ticle 18 and paragraphs 1 and 2 of Article 19 do not prevent the
territory referred to in paragraph 2 (b) of Article 2 from appl-
ying the provisions of paragraph 2 of Article 23 of the Agreeme-
nt.

IX. Ad Article 24
Contributions paid by, or on behalf of, an individual who is a
resident of a territory to a pension plan that is recognized for
tax purposes in the other territory shall be treated in the same
way for tax purposes in the first-mentioned territory as a cont-
ribution paid to a pension plan that is recognized for tax purp-
oses in that first-mentioned territory, provided that
a) such contributions to such pension plan were paid by, or on
behalf of, that individual before he became a resident of the
first-mentioned territory; and
b) the competent authority of the first-mentioned territory agr-
ees that the pension plan corresponds to a pension plan reco-
gnized for tax purposes by that territory.
For the purpose of this paragraph, the term "pension plan" incl-
udes a pension plan created under a public social security syst-
em.

IN WITNESS whereof the undersigned have signed this Protocol.
DONE in duplicate in the English language at the Hague this twe-
nty-seventh day of February, 2001


For the Taipei For the Netherlands Trade
Representative Office in and Investment Office in
the Netherlands Taipei

Final Agreed Minutes
A second round of negotiations for an Agreement to prevent doub-
le taxation was held in the Hague, from 26 to 29 June 2000, bet-
ween a delegation from Taipei and a delegation from the Netherl-
ands. The two delegation were respectively headed by Ms. Joanne
Ling, senior specialist of the Department of Taxation, Ministry
of Finance, Taipei, and Mr. Siebe K. Schuur, Representative of
the Netherlands Trade and Investment Office in Taipei.
The negotiation took place in a spirit of friendship and mutual
understanding. Full agreement of the text was reached, and both
heads of delegation have initialed the draft text of the Agreem-
ent and have expressed their intention to take the necessary st-
eps to the signing of the Agreement as soon as possible.
With respect to the application of the Agreement, it is underst-
ood that：
-- the provision laid down in Article 11, paragraph 3, subparag-
raph c , is applicable to interest payments by banks or bran-
ches of banks to banks or branches of banks; and
-- the staff sent abroad to work respectively in the Taipei Rep-
resentative office in the Netherlands and the Netherlands Tr-
ade and Investment Office in Taipei, fall under the scope of
Article 19 of this Agreement.

Done in the Hague on the 27th day of February 2001.



Chung-Lien Ku Siebe K. Schuur
Representative of the Representative of the
Taipei Representative Office Netherlands Trade and Invest
In the Netherlands Office in Taipei