AGREEMENT BETWEEN THE TAIPEI REPRESENTATIVE OFFICE IN DENMARK
AND THE DANISH TRADE ORGANISATIONS’ TAIPEI OFFICE FOR THE AVOI-
DANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME

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

Have agreed as follows:

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

Article 2
Taxes Covered
1.The existing taxes to which this Agreement shall apply are:
a) In the territory where the taxation laws administered by the
Danish Ministry of Taxation (Skatteministeriet) are applied:
(i) the income tax to the State
(indkomstskatten til staten);
(ii) the income tax to the municipalities
(den kommunale indkomstskat);
(iii) the income tax to the county municipalities
(den amtskommunale indkomstskat).
b) In the territory where the taxation laws administered by the
Taxation Agency, Ministry of Finance in Taipei are applied:
(i) the profit-seeking enterprise income tax; and
(ii) the individual consolidated income tax;
including the surcharges levied thereon.
2.The Agreement shall apply also to any identical or substantia-
lly 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 no-
tify each other of any significant changes which have been ma-
de in the taxation laws of the respective territories.

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
subparagraphs 1 a) or 1 b) of Article 2, as the context req-
uires, and “the other territory” and “territories” shall
be construed accordingly;
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;
d) the term “enterprise” applies to the carrying on of any
business;
e) the terms “enterprise of a territory” and “enterprise of
the other territory” mean respectively an enterprise carri-
ed on by a resident of a territory and an enterprise carried
on by a resident of the other territory;
f) the term “international traffic” means any transport by a
ship or aircraft operated by an enterprise of a territory,
except when the ship or aircraft is operated solely between
places in the other territory;
g) the term “competent authority” means:
(i) in the territory where the taxation laws administered by
the Danish Ministry of Taxation are applied: The Central
Customs and Tax Administration (Told- og Skattestyrelsen);
(ii) in the territory where the taxation laws administered by
the Taxation Agency, Ministry of Finance in Taipei are
applied: Director-General of the Taxation Agency or his
authorised representative;
h) the term “business” includes the performance of professio-
nal services and of other activities of an independent char-
acter.
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 law of that territory for the purposes of the
taxes to which the Agreement applies, any meaning under the
applicable tax laws of that territory prevailing over a meani-
ng 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
territory” means any person who, under the laws of that terr-
itory, is liable to tax therein by reason of his domicile, re-
sidence, place of incorporation, place of management or any
other criterion of a similar nature, and also includes the au-
thority administering a territory and any 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 taxation in that
territory in respect only of income from sources in that terr-
itory, provided that this paragraph shall not apply to indivi-
duals who are residents of the territory referred to in subpa-
ragraph 1 b) 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 l 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 sha-
ll be deemed to be a resident only of the territory with wh-
ich his personal and economic relations are closer (centre
of vital interests);
b) if the territory in which he has his centre of vital intere-
sts 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 habi-
tual abode;
c) if he has an habitual abode in both territories or in neith-
er of them, he shall be deemed to be a resident only of the
territory in which he is a national under laws in force of
that territory;
d) if he is a national as referred to under subparagraph c) ab-
ove in both territories or in neither of them, the competent
authorities of the territories shall settle the question by
mutual agreement.
4.A legal person, a fund or other entity which is established in
a territory under the laws in force in that territory with the
purpose of providing pensions or other similar benefits to in-
dividuals, and which is generally tax exempt in that territory
, shall be deemed to be a resident of that territory for the
purposes of this Agreement.
5.Where by reason of the provisions of paragraph l a person oth-
er 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 esta-
blishment” means a fixed place of business through which the
business of an enterprise is wholly or partly carried on.
2.The term “permanent establishment” includes especially:
a) a place of management;
b) a branch;
c) an office;
d) a factory;
e) a workshop;
f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3.A building site or construction or installation project const-
itutes a permanent establishment only if it lasts more than
six months.
4.An enterprise of a territory shall be deemed to have a perman-
ent establishment in the other territory if:
a) an installation or drilling rig or ship used for the explor-
ation of natural resources lasts more than six months;
b) it carries on supervisory activities for more than six mont-
hs in connection with a building site or construction or in-
stallation project which is being undertaken in the other
territory;
c) it furnishes services, including consultancy services, thro-
ugh employees or other personnel or persons engaged by the
enterprise for such purpose, but only where activities of
that nature continue for the same or a connected project,
for a period or periods aggregating more than six months wi-
thin any twelve month period.
5.For the purposes of determining the duration of activities un-
der paragraphs 3 and 4, the period during which activities are
carried on in a territory by an enterprise associated with an-
other enterprise shall be aggregated with the period during
which activities are carried on by the enterprise with which
it is associated if the first-mentioned activities are connec-
ted with the activities carried on in that territory by the
last-mentioned enterprise, provided that any period during wh-
ich two or more associated enterprises are carrying on concur-
rent activities is counted only once. An enterprise shall be
deemed to be associated with another enterprise if one is con-
trolled directly or indirectly by the other, or if both are
controlled directly or indirectly by a third person or persons
.
6.Notwithstanding the preceding provisions of this Article, the
term “permanent establishment” shall be deemed not to inclu-
de:
a) the use of facilities solely for the purpose of storage, di-
splay 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 activ-
ity 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.
7.Notwithstanding the provisions of paragraphs l and 2, where a
person - other than an agent of an independent status to whom
paragraph 8 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 6 which, if ex-
ercised through a fixed place of business, would not make this
fixed place of business a permanent establishment under the
provisions of that paragraph.
8.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.
9.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
the other territory, or which carries on business in that oth-
er territory (whether through a permanent establishment or ot-
herwise), shall not of itself constitute either company a per-
manent 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
question is situated. The term shall in any case include pro-
perty 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,
boats and aircraft shall not be regarded as immovable property
.
3.The provisions of paragraph l shall apply to income derived
from the direct use, letting, or use in any other form of imm-
ovable property.
4.The provisions of paragraphs l and 3 shall also apply to the
income from immovable property of an enterprise.

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
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 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 establishment.
3.In determining the profits of a permanent establishment, there
shall be allowed as deductions expenses which are incurred for
the purposes of the permanent establishment, including 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 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 determi-
ned 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 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 derived by an enterprise of a territory from the oper-
ation of ships or aircraft in international traffic shall be
taxable only in that territory.
2.For the purposes of this Article, profits from the operation
of ships or aircraft in international traffic include:
a) profits from the rental on a full (time or voyage) basis or
a bareboat basis of ships or aircraft; and
b) profits from the use, maintenance or rental of containers (
including trailers and related equipment for the transport
of containers) used for the transport of goods or merchandi-
se;
where such rental or such use, maintenance or rental, as the
case may be, is incidental to the operation of ships or aircr-
aft in international traffic.
3.The provisions of paragraphs 1 and 2 shall also apply to prof-
its from the participation in a pool, a joint business or an
international operating agency.
4.Where enterprises from different jurisdictions have agreed to
operate ships or aircraft in international traffic through a
business consortium, the provisions of this Article shall app-
ly only to such proportion of the profits as corresponds to
the participation held in that consortium by an enterprise of
a territory.

Article 9
Associated Enterprises
1.Where
a) an enterprise of a territory participates directly or indi-
rectly in the management, control or capital of an enterpr-
ise of the other territory, or
b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a terri-
tory and an enterprise of the other territory, and in eith-
er case conditions are made or imposed between the two ent-
erprises 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 in-
cluded in the profits of that enterprise and taxed accordi-
ngly.
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-menti-
oned territory if the conditions made between the two enterpr-
ises had been those which would have been made between indepe-
ndent enterprises, then that 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
consult each other.

Article 10
Dividends
l.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 in force of that territory, but if the bene-
ficial owner of the dividends is a resident of the other terr-
itory the tax so charged shall not exceed 10 per cent of the
gross amount of the dividends.
The competent authorities of the territories shall by mutual
agreement settle the mode of application of these limitations.
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 or other rights, not being debt-claims, participa-
ting in profits, as well as income from other corporate rights
which is subjected to the same taxation treatment as income
from shares by the laws of the territory of which the company
making the distribution is a resident.
4.The provisions of paragraphs l and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a terr-
itory, carries on business in the other territory of which the
company paying the dividends is a resident, through a permane-
nt establishment situated therein, and the holding in respect
of which the dividends are paid is effectively connected with
such permanent establishment. In such case the provisions of
Article 7 shall apply.
5.Where a company which is a resident of a territory derives pr-
ofits 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 th-
at other territory or insofar as the holding in respect of wh-
ich the dividends are paid is effectively connected with a pe-
rmanent establishment 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
l.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 of that te-
rritory, but if the beneficial owner of the interest is a res-
ident of the other territory, the tax so charged shall not ex-
ceed 10 per cent of the gross amount of the interest.
The competent authorities of the territories shall by mutual
agreement settle the mode of application of these limitations.
3.Notwithstanding the provisions of paragraph 2, tax shall not
be charged on the gross amount of the interest if the benefic-
ial owner is a public institution (including a central bank)
in a territory or any agency (including a financial instituti-
on) owned or controlled by an authority administering a terri-
tory.
4.The term “interest” as used in this Article means income fr-
om debt-claims of every kind, whether or not secured by mortg-
age and whether or not carrying a right to participate in the
debtor's profits, and in particular, income from public secur-
ities and income from bonds or debentures, including premiums
and prizes attaching to such securities, bonds or debentures.
Penalty charges for late payment shall not be regarded as int-
erest for the purpose of this Article.
5.The provisions of paragraphs 1 and 2 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
therein, and the debt-claim in respect of which the interest
is paid is effectively connected with such permanent establis-
hment. In such case the provisions of Article 7 shall apply.
6.Interest shall be deemed to arise in a territory when the pay-
er is a resident of that territory. Where, however, the pers-
on paying the interest, whether he is a resident of a territo-
ry or not, has in a territory a permanent establishment in co-
nnection with which the indebtedness on which the interest is
paid was incurred, and such interest is borne by such permane-
nt establishment, then such interest shall be deemed to arise
in the territory in which the permanent establishment is situ-
ated.
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 interest, having regard to the
debt-claim for which it is paid, exceeds the amount which wou-
ld 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 su-
ch case, the excess part of the payments shall remain taxable
according to the laws of each territory, due regard being had
to the other provisions of this Agreement.

Article 12
Royalties
l.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 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 per cent of the gross amount of the royalties.
The competent authorities of the territories shall by mutual
agreement settle the mode of application of these limitations.
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 scientif-
ic work including cinematograph films, any patent, trade mark,
design or model, plan, secret formula or process, or for info-
rmation concerning industrial, commercial or scientific exper-
ience. Subject to the provisions of Article 16, the term “
royalties” shall also include payments of any kind for the
use or the right to use a person’s name, picture or any other
similar personality rights as well as films or tapes of enter-
tainers’ or sportsmen’s performances used for radio or tele-
vision broadcasting.
4.The provisions of paragraphs l and 2 shall not apply if the
beneficial owner of the royalties, being a resident of a terr-
itory, carries on business in the other territory in which the
royalties arise, through a permanent establishment situated
therein, and the right or property in respect of which the ro-
yalties are paid is effectively connected with such permanent
establishment. In such case the provisions of Article 7 shall
apply.
5.Royalties shall be deemed to arise in a territory when the pa-
yer is a resident of that territory. Where, however, the per-
son paying the royalties, whether he is a resident of a terri-
tory or not, has in a territory a permanent establishment in
connection with which the liability to pay the royalties was
incurred, and such royalties are borne by such permanent esta-
blishment, then such royalties shall be deemed to arise in the
territory in which the permanent establishment is situated.
6.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
remain taxable according to the laws of 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, includi-
ng such gains from the alienation of such a permanent establi-
shment (alone or with the whole enterprise), may be taxed in
that other territory.
3.Gains derived by an enterprise of a territory from the aliena-
tion of ships or aircraft operated in international traffic or
movable property pertaining to the operation of such ships or
aircraft, shall be taxable only in that territory.
4.Gains derived by a resident of a territory from the alienation
of shares deriving more than 50 per cent of their value direc-
tly or indirectly from immovable property situated in the oth-
er territory may be taxed in that other territory.
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.Where enterprises from different jurisdictions have agreed to
operate ships or aircraft in international traffic through a
business consortium, the provisions of paragraph 3 shall apply
only to such proportion of the capital gains as corresponds to
the participation held in that consortium by an enterprise of
a territory.

Article 14
Income from Employment
1.Subject to the provisions of Articles 15, 17 and 18, 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 rem-
uneration as is derived therefrom may be taxed in that other
territory.
2.Notwithstanding the provisions of paragraph l, remuneration
derived by a resident of a territory in respect of an employm-
ent 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 fiscal year
concerned, and
b) the remuneration is paid by, or on behalf of, an employer
who is a resident of the first-mentioned territory, and
c) the remuneration is not borne by a permanent establishment
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 by an en-
terprise of a territory, may be taxed in that territory.

Article 15
Directors' Fees
Directors' fees and other similar payments derived by a resident
of a territory in his capacity as a member of the board of dire-
ctors of a company which is a resident of the other territory,
may be taxed in that other territory.

Article 16
Artistes and Sportsmen
1.Notwithstanding the provisions of Articles 7 and 14, 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
and 14, be taxed in the territory in which the activities of
the entertainer or sportsman are exercised.
3.The provisions of paragraphs 1 and 2 shall not apply to income
derived from activities performed in a territory by artistes
or sportsmen if the visit to that territory is wholly or main-
ly supported by public funds of one or both of the territories
or subdivisions or local authorities thereof. In such case,
the income is taxable only in the territory in which the arti-
ste or the sportsman is a resident.

Article 17
Pensions, Social Security Payments and Similar Payments
1.Payments received by an individual, being a resident of a ter-
ritory, under the social security legislation of the other te-
rritory, or under any other scheme out of funds created by th-
at other territory or a subdivision or a local authority ther-
eof, may be taxed in that other territory.
2.Subject to the provisions of paragraph 1 of this Article and
paragraph 2 of Article 18, pensions and other similar remuner-
ation arising in a territory and paid to a resident of the ot-
her territory, whether in consideration of past employment or
not, shall be taxable only in the other territory. However,
such pensions and other similar remuneration may be taxed in
the first-mentioned territory if
a) contributions paid by the beneficiary to the pension scheme
were deducted from the beneficiary’s taxable income in the
first-mentioned territory under the law of that territory;
or
b) contributions paid by an employer were not taxable income
for the beneficiary in the first-mentioned territory under
the law of that territory.
3.Pensions shall be deemed to arise in a territory if paid by a
pension fund or other similar institution providing pension
schemes in which individuals may participate in order to secu-
re retirement benefits, where such pension fund or other simi-
lar institution is recognized for tax purposes in accordance
with the laws of that territory.

Article 18
Public Service
1.
a) Salaries, wages and other similar remuneration, other than a
pension, paid by an authority administering a territory or a
subdivision thereof, or by a local authority of that territ-
ory, to an individual in respect of services rendered to su-
ch authorities shall be taxable only in that territory.
b) 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 resi-
dent of that territory who:
(i) is a national of that territory under the laws in force in
that territory; or
(ii) did not become a resident of that territory solely for
the purpose of rendering the services.
2.
a) Any pension paid by, or out of funds created by, an authori-
ty administering a territory or a subdivision thereof, or a
local authority of that territory, to an individual in resp-
ect of services rendered to such authorities shall be taxab-
le only in that territory.
b) However, such pension shall be taxable only in the other te-
rritory if the individual is a resident of and, under the
laws in force in that territory, a national of that territo-
ry.
3.The provisions of Articles 14, 15, 16 and 17 shall apply to
salaries, wages and other sim-ilar remuneration, and to pensi-
ons, in respect of services rendered in connection with a bus-
iness carried on by an authority referred to in paragraph 1.

Article 19
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 20
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 l shall not apply to income, other
than income from immovable property as defined in paragraph 2
of Article 6, if the recipient of such income, being a reside-
nt of a territory, carries on business in the other territory
through a permanent establishment situated therein, and the
right or property in respect of which the income is paid is
effectively connected with such permanent establishment. In
such case the provisions of Article 7 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 for-
egoing Articles of the Agreement and arising in the other ter-
ritory may also be taxed in that other territory.

Article 21
Elimination of Double Taxation
Double taxation shall be avoided as follows:
1.In the case of the territory where the taxation laws administ-
ered by the Danish Ministry of Taxation are applied:
a) Subject to the provisions of subparagraph c), where a resid-
ent of the territory where the taxation laws administered by
the Danish Ministry of Taxation are applied derives income
which, in accordance with the provisions of this Agreement,
may be taxed in the territory where the taxation laws admin-
istered by the Taxation Agency, Ministry of finance in Taip-
ei are applied, the first mentioned territory shall allow as
a deduction from the tax on the income of that resident, an
amount equal to the income tax paid in the other territory;
b) such deduction shall not, however, exceed that part of the
income tax as computed before the deduction is given, which
is attributable to the income which may be taxed in the oth-
er territory;
c) where a resident of the territory where the taxation laws
administered by the Danish Ministry of Taxation are applied
derives income which, in accordance with the provisions of
this Agreement shall be taxable only in the territory where
the taxation laws administered by the Taxation Agency, Mini-
stry of Finance in Taipei are applied, the first mentioned
territory may include this income in the tax base, but shall
allow as a deduction from the income tax that part of the
income tax, which is attributable to the income derived from
the other territory.
2.In the case of the territory where the taxation laws administ-
ered by the Taxation Agency, Ministry of Finance in Taipei are
applied:
Where a resident of the territory where the taxation laws adm-
inistered by the Taxation Agency, Ministry of Finance in Taip-
ei are applied derives income from the other territory where
the taxation laws administered by the Danish Ministry of Taxa-
tion are applied, the amount of tax on that income paid in the
other territory and in accordance with the provisions of this
Agreement, shall be credited against the tax levied in the fi-
rst 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 acco-
rdance with its taxation laws and regulations.

Article 22
Non-Discrimination
1.Nationals of a territory under the laws in force in that terr-
itory shall not in the other territory be subjected to any ta-
xation or any requirement connected therewith, which is other
or more burdensome than the taxation and connected requiremen-
ts to which nationals of that other territory under the laws
in force in 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 Artic-
le l, 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 ob-
liging a territory to grant to residents of the other territo-
ry any personal allowances, reliefs and reductions for taxati-
on purposes on account of civil status or family responsibili-
ties which it grants to its own residents.
3.Except where the provisions of paragraph l of Article 9, para-
graph 7 of Article 11, or paragraph 6 of Article 12, apply,
interest, royalties and other disbursements paid by an enterp-
rise of a territory to a resident of the other territory shall
, for the purpose of determining the taxable profits of such
an enterprise, be deductible under the same conditions as if
they had been paid to a resident of the first-mentioned terri-
tory.
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
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 23
Mutual Agreement Procedure
1.Where a person considers that the actions of the authorities
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 resident
or, if his case comes under paragraph l of Article 22, to that
of the territory of which he is a national. The case must be
presented within three years from the first notification of
the action resulting in taxation not in accordance with the
provisions of 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 imp-
lemented 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, including through a joint commission
consisting of themselves or their representatives, for the pu-
rpose of reaching an agreement in the sense of the preceding
paragraphs.

Article 24
Exchange of Information
1.The competent authorities of the territories shall exchange
such information as is forseeably relevant for carrying out
the provisions of this Agreement or to the administration or
enforcement of the domestic laws concerning taxes of every ki-
nd and description imposed on behalf of the territories, or
their subdivisions or local authorities, insofar as the taxat-
ion thereunder is not contrary to the Agreement. The exchange
of information is not restricted by Articles l and 2.
2.Any information received under paragraph 1 by a territory sha-
ll be treated as secret in the same manner as information obt-
ained 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 colle-
ction of, the enforcement or prosecution in respect of, the d-
etermination of appeals in relation to the taxes referred to
in paragraph 1, or the oversight of the above. Such persons
or authorities shall use the information only for such purpos-
es. They may disclose the information in public court procee-
dings or in judicial decisions.
3.In no case shall the provisions of paragraphs l and 2 be cons-
trued 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 te-
rritory;
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, busin-
ess, 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 preced-
ing sentence is subject to the limitations of paragraph 3 exc-
ept where such limitations would preclude a territory from su-
pplying information solely because it has no domestic tax int-
erest 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 fidu-
ciary capacity or relates to ownership interests in a person.

Article 25
Assistance in the Collection of Taxes
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 whi-
ch 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.In no case shall the provisions of this Article 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 te-
rritory;
b) to carry out measures which would be contrary to public pol-
icy (ordre public);
c) to provide assistance if the other territory has not pursued
all reasonable measures of collection or conservancy, as the
case may be, available under its laws or administrative pra-
ctice;
d) to provide assistance in those cases where the administrati-
ve burden for that territory is clearly disproportionate to
the benefits to be derived by the other territory.

Article 26
Limitation of Benefits
1.Notwithstanding any other provisions of this Agreement, where
a) a company that is a resident of a territory derives its inc-
ome primarily from outside that territory
(i) from activities such as banking, financing or insurance;
or
(ii) from being the headquarters, co-ordination centre or sim-
ilar entity providing administrative services or other
support to a group of companies which carry on business
primarily outside the first-mentioned territory; and
b) except for the application of the method of elimination of
double taxation normally applied by that territory, such in-
come would bear a significantly lower tax under the laws of
that territory than income from similar activities carried
out within that territory or from being the headquarters, co
-ordination centre or similar entity providing administrati-
ve services or other support to a group of companies which
carry on business in that territory, as the case may be,
any provisions of this Agreement conferring an exemption or
reduction of tax shall not apply to the interest or royalti-
es derived by such company.
2.Notwithstanding the provisions of Article 10, Article 11 and
Article 12, a territory may tax in accordance with the applic-
able tax laws of that territory, dividends, interest and roya-
lties paid by a company which is a resident of that territory
to a company, trust or partnership or any other legal person,
which is a resident of the other territory, where
a) more than 50 per cent of the capital or votes in the company
, trust or partners-hip or any other legal person receiving
the dividends, interest or royalties is owned or controlled
directly or indirectly by a person or by associated compani-
es, trusts or partnerships or any other legal persons not
being residents of one of the territories or of the European
Union or the European Economic Area, and
b) the dividends, interest or royalties would not have been su-
bject to a reduced tax rate or tax exemption in the territo-
ry in which they arise under the provisions of any double
taxation agreement or other agreement concluded between that
territory and other territories or jurisdictions, if paid
directly from the company of the first mentioned territory
to any person or associated companies, trusts or partnershi-
ps or any other legal persons which directly or indirectly
participate in the ownership or control of the company to
which the dividends, interest or royalties are paid.
3.Notwithstanding the provisions of any other Article of this
Agreement, a resident of a territory shall not receive the be-
nefit 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 connect-
ed with such resident was to obtain the benefits of this Agre-
ement.
4.For the purposes of this Article the term “associated compan-
ies, trusts or partnerships or any other legal persons” means
companies, trusts or partnerships or any other legal persons
in which the same persons participate directly or indirectly
in the management, control or capital.

Article 27
Entry into Force
1.The Danish Trade Organisations’ Taipei Office and the Taipei
Representative Office in Denmark shall notify each other in
writing that the legal requirements for the entry into force
of this Agreement in their respective territories have been
complied with.
2.The Agreement shall enter into force on the date of the later
of the notifications refer-red to in paragraph l and its prov-
isions shall have effect:
a) in respect of taxes due or withheld at source, on income cr-
edited or payable on or after January 1 of the year next fo-
llowing the year in which the Agreement enters into force;
b) in respect of other taxes charged, on income of taxable per-
iods beginning on or after January 1 of the year next follo-
wing the year in which the Agreement enters into force.

Article 28
Termination
This Agreement shall remain in force indefinitely. However, the
Danish Trade Organisations’ Taipei Office and the Taipei Repre-
sentative Office in Denmark may terminate the Agreement by givi-
ng written notice of termination on or before 30 June in any ca-
lendar year following after a period of five years from the ent-
ry into force of this Agreement. In such case, this Agreement
shall cease to have effect:
a) in respect of taxes due or withheld at source, on income cre-
d ited or payable on or after January 1 of the year next fol-
lowing the year in which the notice of termination is given;
b) in respect of other taxes charged, on income of taxable peri-
ods beginning on or after January 1 of the year next followi-
ng the year 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 at Taipei this 30 day of Aug, 2005, in the En-
glish language.

For the Taipei For the Danish
Representative Trade
Office Organisations’
in Denmark Taipei Office

Ping-nan Chang Flemming Aggergaard