Taipei, 13 July 2011

Dear Mr. Hsieh
I refer to the Agreement signed on 8 October 2007 between the
Trade Office of Swiss Industries, Taipei, and the Taipei
Cultural and Economic Delegation in Switzerland for the
Avoidance of Double Taxation with respect to Taxes on Income
(the “ Agreement ” ).

I propose to amend the Agreement as follows:

Article I
Paragraph 4 of Article 13 of the Agreement shall be deleted and
replaced by the following:
“4. Gains derived by a resident of a territory from the
alienation of shares - other than shares which are quoted
on a stock exchange as may be agreed by the territories -
or other corporate rights in a company the assets of which
consist directly or indirectly for more than 50 per cent of
immovable property referred to in Article 6 and situated in
the other territory may be taxed in that other territory.
The provisions of the preceding sentence shall not apply
if:
a) the person who derives the gains owns less than 5 per
cent of the shares or other corporate rights in the
company prior to the alienation; or
b) the gains are derived in the course of a corporate
reorganisation, amalgamation, division or similar
transaction; or
c) the immovable property is used by a company for its own
business. ”

Article II
Article 25 of the Agreement shall be deleted and replaced by the
following:
“Article 25
Exchange of Information
1. The competent authorities of the territories shall exchange
such information as is foreseeably relevant for carrying out
the provisions of this Agreement or to the administration or
enforcement of the domestic laws concerning taxes covered by
the Agreement insofar as the taxation thereunder is not
contrary to the Agreement. The exchange of information is not
restricted by Article 1.
2. Any information received under paragraph 1 by a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws of that territory and shall
be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
or the determination of appeals in relation to the taxes
referred to in paragraph 1. Such persons or authorities shall
use the information only for such purposes. They may disclose
the information in public court proceedings or in judicial
decisions.
3. In no case shall the provisions of paragraphs 1 and 2 be
construed so as to impose on a territory the obligation:
a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
territory;
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,
business, industrial, commercial or professional secret or
trade process, or information the disclosure of which
would be contrary to public policy (ordre public).
4. If information is requested by a territory in accordance with
this Article, the other territory shall use its information
gathering measures to obtain the requested information, even
though that other territory may not need such information for
its own tax purposes. The obligation contained in the
preceding sentence is subject to the limitations of paragraph
3 but in no case shall such limitations be construed to
permit a territory to decline to supply information solely
because it has no domestic interest in such information.
5. In no case shall the provisions of paragraph 3 be construed
to permit a territory to decline to supply information solely
because the information is held by a bank, other financial
institution, nominee or person acting in an agency or a
fiduciary capacity or because it relates to ownership
interests in a person. In order to obtain such information,
the tax authorities of the requested territory, if necessary
to comply with its obligations under this paragraph, shall
have the power to enforce the disclosure of information
covered by this paragraph, notwithstanding paragraph 3 or any
contrary provisions in its domestic laws. ”

Article III
Paragraph 2 c) of Article 27 of the Agreement shall be deleted
and replaced by the following:
“c) in respect of Article 25 for information that relates to
taxation years beginning on or after the first day of
January following the year of the entry into force of the
Agreement.”

Article IV
The reference to “ paragraph 1 b) of Article 2 ” in the
paragraphs 5 and 6 of the Protocol shall be deleted and replaced
by the reference to “ paragraph 3 b) of Article 2 ”.

Article V
Paragraph 8 of the Protocol shall be deleted and replaced by the
following:
“8. ad Article 25
a) It is understood that an exchange of information will only
be requested once the requesting territory has exhausted
all regular sources of information available under the
internal taxation procedure.
b) It is understood that the tax authorities of the requesting
territory shall provide the following information to the
tax authorities of the requested territory when making a
request for information under Article 25 of the Agreement:
(i) the identity of the person under examination or
investigation;
(ii) the period of time for which the information is
requested;
(iii) a statement of the information sought including its
nature and the form in which the requesting territory
wishes to receive the information from the requested
territory;
(iv) the tax purpose for which the information is sought;
(v) to the extent known, the name and address of any person
believed to be in possession of the requested information.
The purpose of referring to information that may be
foreseeably relevant is intended to provide for exchange of
information in tax matters to the widest possible extent
without allowing the territories to engage in “ fishing
expeditions ” or to request information that is unlikely
to be relevant to the tax affairs of a given taxpayer.
While this subparagraph contains important procedural
requirements that are intended to ensure that fishing
expeditions do not occur, clauses (i) through (v)
nevertheless need to be interpreted with a view not to
frustrate effective exchange of information.
c) It is further understood that Article 25 of the Agreement
shall not commit the territories to exchange information on
an automatic or a spontaneous basis.
d) It is understood that in case of an exchange of
information, the administrative procedural rules regarding
taxpayers ’ rights provided for in the requested territory
remain applicable before the information is transmitted to
the requesting territory. It is further understood that
this provision aims at guaranteeing the taxpayer a fair
procedure and not at preventing or unduly delaying the
exchange of information process. ”

Article VI
Paragraph 9 of the Protocol shall be deleted.
If the above proposal is acceptable to the Taipei Cultural and
Economic Delegation in Switzerland, I further propose that this
letter and your reply reflecting such acceptance shall
constitute an agreement between the Taipei Cultural and Economic
Delegation in Switzerland and the Trade Office of Swiss
Industries, Taipei, to amend the Agreement, which shall enter
into force on the date of entry into force of the Agreement.

Yours sincerely,

Jost Feer
Trade Office of Swiss Industries,
Taipei

Mr. Fadah Hsieh
Taipei Cultural and Economic
Delegation in Switzerland


Berne, July 14, 2011
Dear Mr. Feer
I acknowledge receipt of your letter of [date], which reads as
follows:
“Dear Mr. Hsieh

I refer to the Agreement signed on 8 October 2007 between the
Trade Office of Swiss Industries, Taipei, and the Taipei
Cultural and Economic Delegation in Switzerland for the
Avoidance of Double Taxation with respect to Taxes on Income
(the “ Agreement ” ). I propose to amend the Agreement as
follows:

Article I
Paragraph 4 of Article 13 of the Agreement shall be deleted and
replaced by the following:
“4. Gains derived by a resident of a territory from the
alienation of shares - other than shares which are quoted
on a stock exchange as may be agreed by the territories -
or other corporate rights in a company the assets of which
consist directly or indirectly for more than 50 per cent of
immovable property referred to in Article 6 and situated in
the other territory may be taxed in that other territory.
The provisions of the preceding sentence shall not apply
if:
a) the person who derives the gains owns less than 5 per
cent of the shares or other corporate rights in the
company prior to the alienation; or
b) the gains are derived in the course of a corporate
reorganisation, amalgamation, division or similar
transaction; or
c) the immovable property is used by a company for its own
business. ”

Article II
Article 25 of the Agreement shall be deleted and replaced by the
following:
“Article 25
Exchange of Information
1. The competent authorities of the territories shall exchange
such information as is foreseeably relevant for carrying out
the provisions of this Agreement or to the administration or
enforcement of the domestic laws concerning taxes covered by
the Agreement insofar as the taxation thereunder is not
contrary to the Agreement. The exchange of information is not
restricted by Article 1.
2. Any information received under paragraph 1 by a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws of that territory and shall
be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
or the determination of appeals in relation to the taxes
referred to in paragraph 1. Such persons or authorities shall
use the information only for such purposes. They may disclose
the information in public court proceedings or in judicial
decisions.
3. In no case shall the provisions of paragraphs 1 and 2 be
construed so as to impose on a territory the obligation:
a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
territory;
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,
business, industrial, commercial or professional secret or
trade process, or information the disclosure of which
would be contrary to public policy (ordre public).
4. If information is requested by a territory in accordance with
this Article, the other territory shall use its information
gathering measures to obtain the requested information, even
though that other territory may not need such information for
its own tax purposes. The obligation contained in the
preceding sentence is subject to the limitations of paragraph
3 but in no case shall such limitations be construed to
permit a territory to decline to supply information solely
because it has no domestic interest in such information.
5. In no case shall the provisions of paragraph 3 be construed
to permit a territory to decline to supply information solely
because the information is held by a bank, other financial
institution, nominee or person acting in an agency or a
fiduciary capacity or because it relates to ownership
interests in a person. In order to obtain such information,
the tax authorities of the requested territory, if necessary
to comply with its obligations under this paragraph, shall
have the power to enforce the disclosure of information
covered by this paragraph, notwithstanding paragraph 3 or any
contrary provisions in its domestic laws. ”

Article III
Paragraph 2 c) of Article 27 of Article 27 of the Agreement
shall be deleted and replaced by the following:
“c) in respect of Article 25 for information that relates to
taxation years beginning on or after the first day of
January following the year of the entry into force of the
Agreement. ”

Article IV
The reference to “ paragraph 1 b) of Article 2 ” in the
paragraphs 5 and 6 of the Protocol shall be deleted and replaced
by the reference to “ paragraph 3 b) of Article 2 ”.

Article V
Paragraph 8 of the Protocol shall be deleted and replaced by the
following:
“8. ad Article 25
a) It is understood that an exchange of information will only
be requested once the requesting territory has exhausted
all regular sources of information available under the
internal taxation procedure.
b) It is understood that the tax authorities of the requesting
territory shall provide the following information to the
tax authorities of the requested territory when making a
request for information under Article 25 of the Agreement:
(i) the identity of the person under examination or
investigation;
(ii) the period of time for which the information is
requested;
(iii) a statement of the information sought including its
nature and the form in which the requesting territory
wishes to receive the information from the requested
territory;
(iv) the tax purpose for which the information is sought;
(v) to the extent known, the name and address of any person
believed to be in possession of the requested
information.
The purpose of referring to information that may be
foreseeably relevant is intended to provide for exchange of
information in tax matters to the widest possible extent
without allowing the territories to engage in “ fishing
expeditions ” or to request information that is unlikely
to be relevant to the tax affairs of a given taxpayer.
While this subparagraph contains important procedural
requirements that are intended to ensure that fishing
expeditions do not occur, clauses (i) through (v)
nevertheless need to be interpreted with a view not to
frustrate effective exchange of information.
c) It is further understood that Article 25 of the Agreement
shall not commit the territories to exchange information on
an automatic or a spontaneous basis.
d) It is understood that in case of an exchange of
information, the administrative procedural rules regarding
taxpayers ’ rights provided for in the requested territory
remain applicable before the information is transmitted to
the requesting territory. It is further understood that
this provision aims at guaranteeing the taxpayer a fair
procedure and not at preventing or unduly delaying the
exchange of information process. ”

Article VI
Paragraph 9 of the Protocol shall be deleted.
If the above proposal is acceptable to the Taipei Cultural and
Economic Delegation in Switzerland, I further propose that this
letter and your reply reflecting such acceptance shall
constitute an agreement between the Taipei Cultural and Economic
Delegation in Switzerland and the Trade Office of Swiss
Industries, Taipei, to amend the Agreement, which shall enter
into force on the date of entry into force of the Agreement. ”

I inform you about the acceptance of the Taipei Cultural and
Economic Delegation in Switzerland with the above proposal.

Yours sincerely,

Fadah Hsieh
Taipei Cultural and Economic
Delegation in Switzerland

Mr. Jost Feer
Trade Office of Swiss Industries,
Taipei