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1.Signed on December 28 and December 19, 2011; Entered into force on Novenber 7, 2012.

 
The Taipei Representative Office in the Federal Republic of
Germany and the German Institute in Taipei –

Desiring to promote their mutual economic relations through the
conclusion of an Agreement for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on
income and on capital –

Have agreed as follows:

Article 1
Personal Scope
This Agreement shall apply to persons who are residents of one
or both of the territories of paragraph (1) a) of Article 3.

Article 2
Taxes Covered
(1) This Agreement shall apply to taxes on income and on capital
imposed in either of the territories of paragraph (1) a) of
Article 3, irrespective of the manner in which they are
levied.
(2) There shall be regarded as taxes on income and on capital
all taxes imposed on total income, on total capital, or on
elements of income or of capital, including taxes on gains
from the alienation of movable or immovable property, taxes
on the total amounts of wages or salaries paid by
enterprises, as well as taxes on capital appreciation.
(3) The existing taxes to which this Agreement shall apply are
in particular:
a) in the territory in which the taxation law administered by
the German Federal Ministry of Finance, the Ministries of
Finance of the "Lander", or fiscal authorities of political
subdivisions thereof is applied:
(i) the income tax (Einkommensteuer);
(ii) the corporation tax (Korperschaftsteuer);
(iii) the trade tax (Gewerbesteuer); and
(iv) the capital tax (Vermogensteuer);
including the supplements levied thereon;
b) in the territory in which the taxation law administered by
the Taxation Agency, Ministry of Finance, Taipei, or fiscal
authorities of political subdivisions thereof is applied:
(i) the profit seeking enterprise income tax;
(ii) the individual consolidated income tax; and
(iii) the income basic tax;
including the supplements levied thereon.
(4) The Agreement shall apply also to any identical or
substantially similar taxes that are imposed subsequently in
addition to, or in place of, the existing taxes. The
competent authorities of the territories shall inform each
other about the significant changes that have been made in
the taxation laws of the respective territories.

Article 3
General Definitions
(1) For the purposes of this Agreement, unless the context
otherwise requires:
a) the term "territory" means the territory referred to in
paragraph (3) a) or (3) b) of Article 2 of this Agreement,
as the case requires, and "other territory" and
"territories" shall be construed accordingly;
b) the term "person" means 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 term "business" includes the performance of
professional services and of other activities of an
independent character;
f) the terms "enterprise of a territory" and "enterprise of
the other territory" mean respectively an enterprise
carried on by a resident of a territory or an enterprise
carried on by a resident of the other territory;
g) 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;
h) the term "competent authority" means
(i) in the case of the territory in which the taxation law
administered by the German Federal Ministry of Finance,
the Ministries of Finance of the "Lander", or fiscal
authorities of political subdivisions thereof is applied,
the Federal Ministry of Finance or the agency to which it
has delegated its powers;
(ii) in the case of the territory in which the taxation law
administered by the Taxation Agency, Ministry of Finance,
Taipei, or fiscal authorities of political subdivisions
thereof is applied, the Minister of Finance, his
authorised representatives or the agency to which he has
delegated his powers.
(2) As regards the application of the Agreement at any time in a
territory any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has at
that time under the law 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 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
territory" means any person who, under the laws of that
territory, is liable to tax therein by reason of his
domicile, residence, place of incorporation, place of
management or any other criterion of a similar nature, and
also includes the territories referred to in paragraphs (3)
a) and (3) 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
territory in respect only of income from sources in that
territory or capital situated therein, provided that this
provision shall not apply to individuals who are residents
of the territory referred to in paragraph (3) b) of Article
2 of this Agreement, as long as resident individuals are
taxed only in respect of income from sources in that
territory.
(3) Where by reason of the provisions of paragraph (1) an
individual is a resident of both territories, then his
status shall be determined as follows:
a) he shall be deemed to be a resident only of the territory
in which he has a permanent home available to him; if he
has a permanent home available to him in both territories,
he shall be deemed to be a resident only of the territory
with which his personal and economic relations are closer
(centre of vital interests);
b) if the territory in which he has his centre of vital
interests cannot be determined, or if he has not a
permanent home available to him in either territory, he
shall be deemed to be a resident only of the territory in
which he has an habitual abode;
c) if he has an habitual abode in both territories or in
neither of them, the competent authorities of the
territories shall settle the question by mutual agreement.
(4) Where by reason of the provisions of paragraph (1) a person
other than an individual is a resident of both territories,
then it shall be deemed to be a resident only of the
territory in which its place of effective management is
situated.
(5) A partnership is deemed to be a resident of the territory in
which its place of effective management is situated.

Article 5
Permanent Establishment
(1) For the purposes of this Agreement, the term "permanent
establishment" means a fixed place of business through which
the business of an enterprise is wholly or partly carried
on.
(2) The term "permanent establishment" includes especially:
a) a place of management;
b) a branch;
c) an office;
d) a factory;
e) a workshop; and
f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
(3) The term "permanent establishment" likewise encompasses:
a) a building site, a construction, assembly or installation
project, 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 six months within any twelve
months period.
(4) Notwithstanding the preceding provisions of this Article,
the term "permanent establishment" shall be deemed not to
include:
a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to
the enterprise;
b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage, display or delivery;
c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in 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 paragraph (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 enterprise shall be deemed to have a
permanent establishment in that territory in respect of any
activities which that person undertakes for the enterprise,
unless the activities of such person are limited to those
mentioned in paragraph (4) which, if exercised through a
fixed place of business, would not make this fixed place of
business a permanent establishment under the provisions of
that paragraph.
(6) An enterprise shall not be deemed to have a permanent
establishment in a 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
controls or is controlled by a company which is a resident
of the other territory or which carries on business in that
other territory (whether through a permanent establishment
or otherwise), shall not of itself constitute either company
a permanent establishment of the other.

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

Article 7
Business Profits
(1) The profits of an enterprise of a territory shall be taxable
only in that territory unless the enterprise carries on
business in the other territory through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits of the enterprise may be
taxed in the other territory but only so much of them as is
attributable to that permanent establishment.
(2) Subject to the provisions of paragraph (3), where an
enterprise of a territory carries on business in the other
territory through a permanent establishment situated
therein, there shall in each territory be attributed to that
permanent establishment the profits which it might be
expected to make if it were a distinct and separate
enterprise engaged in the same or similar activities under
the same or similar conditions and dealing wholly
independently with the enterprise of which it is a permanent
establishment.
(3) In determining the profits of a permanent establishment,
there shall be allowed as deductions expenses which are
incurred for the purposes of the permanent establishment,
including executive and general administrative expenses so
incurred, whether in the territory in which the permanent
establishment is situated or elsewhere.
(4) Insofar as it has been customary in a territory to determine
the profits to be attributed to a permanent establishment on
the basis of an apportionment of the total profits of the
enterprise to its various parts, nothing in paragraph (2)
shall preclude that territory from determining the profits
to be taxed by such an apportionment as may be customary;
the method of apportionment adopted shall, however, be such
that the result shall be in accordance with the principles
contained in this Article.
(5) No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent
establishment of goods or merchandise for the enterprise.
(6) For the purposes of the preceding paragraphs of this
Article, the profits to be attributed to the permanent
establishment shall be determined by the same method year by
year unless there is good and sufficient reason to the
contrary.
(7) Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.

Article 8
Shipping and Air Transport
(1) Profits of an enterprise of a territory from the operation
of ships or aircraft in international traffic shall be
taxable only in that territory.
(2) For the purposes of this Article the terms "profits from the
operation of ships or aircraft in international traffic"
shall include profits from
a) the occasional rental of ships or aircraft on a bare-boat
basis, and
b) the use or rental of containers (including trailers and
ancillary equipment used for transporting the containers),
if these activities pertain to the operation of ships or
aircraft in international traffic.
(3) The provisions of paragraph (1) shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency, but only to so much of the
profits so derived as is attributable to the participant in
proportion to its share in the joint operation.

Article 9
Associated Enterprises
(1) Where
a) an enterprise of a territory participates directly or
indirectly in the management, control or capital of an
enterprise of the other territory, or
b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
territory and an enterprise of the other territory,
and in either case conditions are made or imposed between
the two enterprises in their commercial or financial
relations which differ from those which would be made
between independent enterprises, then any profits which
would, but for those conditions, have accrued to one of the
enterprises, but, by reason of those conditions, have not so
accrued, may be included in the profits of that enterprise
and taxed accordingly.
(2) Where a territory includes in the profits of an enterprise
of that territory – and taxes accordingly – profits on
which an enterprise of the other territory has been charged
to tax in that other territory and the profits so included
are profits which would have accrued to the enterprise of
the first-mentioned territory if the conditions made between
the two enterprises had been those which would have been
made between independent enterprises, then that other
territory shall make an appropriate 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
(1) Dividends paid by a company which is a resident of a
territory to a resident of the other territory may be taxed
in that other territory.
(2) However, such dividends may also be taxed in the territory
of which the company paying the dividends is a resident and
according to the laws of that territory, but if the
beneficial owner of the dividends is a resident of the other
territory, the tax so charged shall not exceed 10 per cent
of the gross amount of the dividends.
(3) If in the territory referred to in paragraph (3) b) of
Article 2, a tax rate of less than 10 per cent of the gross
dividends is applied pursuant to an Agreement which is
signed with a member state of the OECD after the signature
of this Agreement in the case of dividends paid to a company
(not including partnerships) which is not resident in this
territory and which directly owns at least 25 per cent of
the capital of the company paying the dividends, the
competent authority referred to in paragraph (1) h) (i) of
Article 3 may request that this lower rate also be applied
to dividends paid to companies (not including partnerships)
resident in the territory referred to in paragraph (3) a) of
Article 2 and which directly own at least 25 per cent of the
capital of the company paying the dividends. From the date
of receipt of the request for the lower tax rate according
to the above-mentioned sentence, this lower rate will also
apply to dividends paid to companies (not including
partnerships) resident in the territory referred to in
paragraph (3) b) of Article 2 and which directly own at
least 25 per cent of the capital of the company paying the
dividends.
(4) Notwithstanding the provisions of paragraphs (2) and (3) of
this Article, the tax so charged shall not exceed 15 per
cent of the gross amount of the dividends if the
distributing company is a real estate investment company of
the territory referred to in paragraph (3) a) of Article 2
that is tax-exempt regarding all or parts of its profits or
that can deduct the distributions in determining its
profits. A real estate investment company is a company
according to paragraph 1 of section 1 of the Act on Real
Estate Stock Corporations with Listed Shares (REIT Act).
(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 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
or other income 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.
(6) The provisions of paragraphs (1) to (4) shall not apply if
the beneficial owner of the dividends, being a resident of a
territory, carries on business in the other territory of
which the company paying the dividends is a resident,
through a permanent establishment situated therein 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.
(7) Where a company which is a resident of a territory derives
profits or income from the other territory, that other
territory may not impose any tax on the dividends paid by
the company, except insofar as such dividends are paid to a
resident of that other territory or insofar as the holding
in respect of which the dividends are paid is effectively
connected with a permanent establishment situated in that
other territory, nor subject the company's undistributed
profits to a tax on the company's undistributed profits,
even if the dividends paid or the undistributed profits
consist wholly or partly of profits or income arising in
such other territory.

Article 11
Interest
(1) Interest arising in a territory and paid to a resident of
the other territory may be taxed in that other territory.
(2) However, such interest may also be taxed in the territory in
which it arises and according to the laws 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
per cent of the gross amount of the interest.
(3) Notwithstanding the provisions of paragraph (2) of this
Article, interest arising in a territory shall be exempt
from tax in that territory if:
a) it is paid to and beneficially owned by an authority of the
other territory, or any public institution of that other
territory as may be agreed between the competent
authorities; or
b) it is paid in consideration of a loan guaranteed by an
authority of the other territory in respect of export or
foreign direct investment.
(4) Notwithstanding the provisions of paragraphs (2) and (3) of
this Article, the tax so charged shall not exceed 15 per
cent of the gross amount of the interest if the interest is
the distributed income of a real estate investment trust or
a real estate asset trust of the territory referred to in
paragraph (3) b) of Article 2 that is tax-exempt regarding
all or parts of its profits or that can deduct the
distributions in determining its profits. A real estate
investment trust and a real estate asset trust are the
trusts governed by the provisions of the Real Estate
Securitization Act.
(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 debtor ’ s profit, and in particular, income from
government securities and income from bonds or debentures,
including premiums and prizes attaching to such securities,
bonds or debentures. However, the term “ interest ” shall
not include for the purpose of this Article penalty charges
for late payment and interest on debt-claims resulting from
deferred payments for goods, merchandise or services
supplied by an enterprise.
(6) The provisions of paragraphs (1) to (4) shall not apply if
the beneficial owner of the interest, being a resident of a
territory, carries on business in the other territory in
which the interest arises, through a permanent establishment
situated therein and the debt-claim in respect of which the
interest is paid is effectively connected with such
permanent establishment. In such case the provisions of
Article 7 shall apply.
(7) Interest shall be deemed to arise in a territory when the
payer is a resident of that territory. Where, however, the
person paying the interest, whether he is a resident of a
territory or not, has in a territory a permanent
establishment in connection with which the indebtedness on
which the interest is paid was incurred, and such interest
is borne by such permanent establishment, then such interest
shall be deemed to arise in the territory in which the
permanent establishment is situated.
(8) Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to
the debt-claim for which it is paid, exceeds the amount
which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the
payments shall remain taxable according to the laws of each
territory, due regard being had to the other provisions of
this Agreement.

Article 12
Royalties
(1) Royalties arising in a territory and paid to a resident of
the other territory may be taxed in that other territory.
(2) However, such royalties may also be taxed in the territory
in which they arise and according to the laws 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.
(3) The term "royalties" as used in this Article means payments
of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or
scientific work including cinematograph films, any patent,
trade mark, design or model, plan, secret formula or
process, or for information concerning industrial,
commercial or scientific experience. 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
entertainers' or sportspersons' performances used for radio
or television broadcasting.
(4) The provisions of paragraphs (1) and (2) shall not apply if
the beneficial owner of the royalties, being a resident of a
territory, carries on business in the other territory in
which the royalties arise, through a permanent establishment
situated therein and the right or property in respect of
which the royalties 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
payer is a resident of that territory. Where, however, the
person paying the royalties, whether he is a resident of a
territory or not, has in a territory a permanent
establishment in connection with which the liability to pay
the royalties was incurred, and such royalties are borne by
such permanent establishment, 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
other person, the amount of the royalties, having regard to
the use, right or information for which they are paid,
exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such
relationship, the provisions of this Article shall apply
only to the last-mentioned amount. In such case, the excess
part of the payments shall remain taxable according to the
laws of each 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 situated in the other
territory may be taxed in that other territory.
(2) Gains from the alienation of shares and similar rights in a
company, the assets of which consist - directly or
indirectly - principally of immovable property situated in a
territory, may be taxed in that territory.
(3) 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,
including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise), may be
taxed in that other territory.
(4) Gains derived by an enterprise of a territory from the
alienation of ships or aircraft operated in international
traffic, or movable property pertaining to the operation of
such ships or aircraft, shall be taxable only in that
territory.
(5) Gains from the alienation of any property other than that
referred to in paragraphs (1) to (4), shall be taxable only
in the territory of which the alienator is a resident.
(6) Where an individual was a resident of a territory for a
period of 5 years or more and has become a resident of the
other territory, paragraph (5) shall not prevent the
first-mentioned territory from taxing under its domestic law
the capital appreciation of shares in a company resident in
the first-mentioned territory for the period of residency of
that individual in the first-mentioned territory. In such
case, the appreciation of capital taxed in the
first-mentioned territory shall not be included in the
determination of the subsequent appreciation of capital by
the other territory.

Article 14
Income from Employment
(1) Subject to the provisions of Articles 15 to 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
remuneration as is derived therefrom may be taxed in that
other territory.
(2) Notwithstanding the provisions of paragraph (1),
remuneration derived by a resident of a territory in respect
of an employment exercised in the other territory shall be
taxable only in the first-mentioned territory if:
a) the recipient is present in the other territory for a
period or periods not exceeding in the aggregate 183 days
in any twelve month period commencing or ending in the
fiscal year concerned, and
b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other territory, and
c) the remuneration is not borne by a permanent establishment
which the employer has in the other territory.
(3) The provisions of paragraph (2) shall not apply to
remuneration for employment within the framework of
professional hiring out of labour.
(4) Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic,
may be taxed in the territory of which the enterprise
operating the ship or aircraft is a resident.

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
directors of a company which is a resident of the other
territory may be taxed in that other territory.

Article 16
Artistes and Sportspersons
(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 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 Articles 7 and 14, be taxed in the territory
in which the activities of the entertainer or sportsperson
are exercised.
(3) The provisions of paragraphs (1) and (2) shall not apply to
income accruing from the exercise of activities by
entertainers or sportspersons in a territory where the visit
to that territory is financed entirely or mainly from public
funds of the other territory or by an organisation which in
that other territory is recognised as a charitable
organisation. In such a case the income may be taxed only in
the territory of which the individual is a resident.

Article 17
Pensions, Annuities and Similar Payments
(1) Subject to the provisions of paragraph (2) of Article 18,
pensions and similar payments or annuities paid to a
resident of a territory from the other territory may be
taxed in that other territory.
(2) Notwithstanding the provisions of paragraph (1), payments
received by an individual being a resident of a territory
from the statutory social insurance of the other territory
shall be taxable only in that other territory.
(3) Notwithstanding the provisions of paragraph (1), recurrent
or non-recurrent payments made by a resident of a territory
to a resident of the other territory as compensation for
political persecution or for an injury or damage sustained
as a result of war (including restitution payments) or of
military or civil alternative service or of a crime,
vaccination or a similar event shall be taxable only in the
first-mentioned territory.
(4) The term "annuities" means certain amounts payable
periodically at stated times, for life or for a specified or
ascertainable period of time, under an obligation to make
the payments in return for adequate and full consideration
in money or money's worth.
(5) Maintenance payments, including those for children, made by
a resident of a territory to a resident of the other
territory shall be exempted from tax in that other
territory. This shall not apply where such maintenance
payments are deductible in the first-mentioned territory in
computing the taxable income of the payer; tax allowances in
mitigation of social burdens are not deemed to be deductions
for the purposes of this paragraph.

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
territory or some other legal entity under public law of
that territory as approved by the competent authority of
that territory to an individual in respect of services
rendered in charge of public or administrative functions on
behalf of such an authority or such other legal entity
under public law of that territory 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 if the
individual is a resident of that territory and
i) is a national of 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
authority administering a territory or some other
above-mentioned legal entity under public law of that
territory to an individual in respect of services rendered
to that territory or that other legal entity under public
law shall be taxable only in that territory.
b) However, such pension shall be taxable only in the other
territory if the individual is a resident of, and a
national of, that territory.
(3) The provisions of Articles 14, 15, 16 or 17 shall apply to
salaries, wages and other similar remuneration, and to
pensions in respect of services rendered in connection with
a business carried on by a territory or some other
above-mentioned legal entity under public law of that
territory.

Article 19
Visiting Professors, Teachers and Students
(1) An individual who visits a territory at the invitation of
that territory or of a university, college, school, museum
or other cultural institution of that territory or under an
official programme of cultural exchange for a period not
exceeding two years solely for the purpose of teaching,
giving lectures or carrying out research at such institution
and who is, or was immediately before that visit, a resident
of the other territory shall be exempt from tax in the
first-mentioned territory on his remuneration for such
activity, provided that such remuneration is derived by him
from outside the first-mentioned territory.
(2) 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 the
first-mentioned territory, provided that such payments arise
from sources outside the first-mentioned 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 (1) shall not apply to income,
other than income from immovable property, if the recipient
of such income, being a resident of a territory, carries on
business in the other territory through a permanent
establishment situated therein 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.

Article 21
Capital
(1) Capital represented by immovable property, owned by a
resident of a territory and situated in the other territory,
may be taxed in that other territory.
(2) Capital represented by movable property forming part of the
business property of a permanent establishment which an
enterprise of a territory has in the other territory may be
taxed in that other territory.
(3) Capital of an enterprise of a territory represented by ships
and aircraft operated in international traffic, and by
movable property pertaining to the operation of such ships
and aircraft, shall be taxable only in that territory.
(4) All other elements of capital of a resident of a territory
shall be taxable only in that territory.

Article 22
Avoidance of Double Taxation in the Territory of Residence
(1) Tax shall be determined in the case of a resident of the
territory referred to in paragraph (3) a) of Article 2 as
follows:
a) Unless foreign tax credit is to be allowed under
sub-paragraph b), there shall be exempted from the
assessment basis of the tax under the laws of the territory
referred to in paragraph (3) a) of Article 2 any item of
income arising in the territory referred to in paragraph
(3) b) of Article 2 and any item of capital situated within
the territory referred to in paragraph (3) b) of Article 2
which, according to this Agreement, may be taxed in the
territory referred to in paragraph (3) b) of Article 2. In
the case of items of income from dividends the preceding
provision shall apply only to such dividends as are paid to
a company (not including partnerships) being a resident of
the territory referred to in paragraph (3) a) of Article 2
by a company being a resident of the territory referred to
in paragraph (3) b) of Article 2 at least 25 per cent of
the capital of which is owned directly by the
first-mentioned company and which were not deducted when
determining the profits of the company distributing these
dividends. There shall be exempted from the assessment
basis of the taxes on capital any shareholding the
dividends of which if paid, would be exempted, according to
the foregoing sentences.
b) Subject to the provisions of the law of the territory
referred to in paragraph (3) a) of Article 2 regarding
credit for foreign tax, there shall be allowed as a credit
against tax payable on income in respect of the following
items of income the tax paid under the laws of the
territory referred to in paragraph (3) b) of Article 2 and
in accordance with this Agreement:
(i) dividends not dealt with in sub-paragraph a);
(ii) interest;
(iii) royalties;
(iv) items of income that may be taxed in the territory
referred to in paragraph (3) b) of Article 2 according to
paragraph (2) of Article 13;
(v) items of income that may be taxed in the territory
referred to in paragraph (3) b) of Article 2 according to
paragraph (3) of Article 14;
(vi) directors' fees;
(vii) items of income in the meaning of Article 16;
(viii) items of income in the meaning of paragraph (1) of
Article 17.
c) The provisions of sub-paragraph b) shall apply instead of
the provisions of sub-paragraph a) to items of income as
defined in Articles 7 and 10 and to the assets from which
such income is derived if the resident of the territory
referred to in paragraph (3) a) of Article 2 does not prove
that the gross income of the permanent establishment in the
business year in which the profit has been realised or of
the company resident in the territory referred to in
paragraph (3) b) of Article 2 in the business year for
which the dividends were paid was derived exclusively or
almost exclusively from activities within the meaning of
nos. 1 to 6 of paragraph 1 of Section 8 of the Law on
External Tax Relations (Aussensteuergesetz); the same shall
apply to immovable property used by a permanent
establishment and to income from this immovable property of
the permanent establishment (paragraph (4) of Article 6)
and to profits from the alienation of such immovable
property (paragraph (1) of Article 13) and of the movable
property forming part of the business property of the
permanent establishment (paragraph (3) of Article 13).
d) The territory referred to in paragraph (3) a) of Article 2,
however, retains the right to take into account in the
determination of its rate of tax the items of income and
capital, which are under the provisions of this Agreement
exempted from the tax under the laws of that territory.
e) Notwithstanding the provisions of sub-paragraph a) double
taxation shall be avoided by allowing a tax credit as laid
down in sub-paragraph b):
(i) if in the territories items of income or capital are
placed under different provisions of this Agreement or
attributed to different persons (except pursuant to
Article 9) and this conflict cannot be settled by a
procedure in accordance with paragraph (3) of Article 24
and if as a result of this difference in placement or
attribution the relevant income or capital would remain
untaxed or be taxed lower than without this conflict; or
(ii) if after due consultation with the competent authority of
the territory referred to in paragraph (3) b) of Article
2 the competent authority of the territory referred to in
paragraph (3) a) of Article 2 informs the competent
authority of the first-mentioned territory of other items
of income to which it intends to apply the provisions of
sub-paragraph b). Double Taxation is then avoided for
this income by allowing a tax credit from the first day
of the calendar year, next following that in which the
information was given.
(2) Tax shall be determined in the case of a resident of the
territory referred to in paragraph (3) b) of Article 2 as
follows:
Where a resident of the territory referred to in paragraph (3)
b) of Article 2 derives income from the other territory, the
amount of tax on that income paid in that other territory (but
excluding, in the case of a dividend, tax paid in respect of the
profits out of which the dividend is paid) and in accordance
with the provisions of this Agreement, shall be credited against
the tax levied in the first-mentioned territory on that
resident. The amount of credit, however, shall not exceed the
amount of the tax in the first-mentioned territory on that
income computed in accordance with its taxation laws and
regulations.

Article 23
Non-discrimination
(1) Residents of a territory shall not be subjected in the other
territory to any taxation or any requirement connected
therewith which is other or more burdensome than the
taxation and connected requirements to which residents of
that other territory in the same circumstances, especially
with respect to residence, are or may be subjected.
(2) The taxation on a permanent establishment which an
enterprise of a territory has in the other territory shall
not be less favourably levied in that other territory than
the taxation levied on enterprises of that other territory
carrying on the same activities. This provision shall not be
construed as obliging a territory to grant to residents of
the other territory any personal allowances, reliefs and
reductions for taxation purposes which it grants only to its
own residents.
(3) Except where the provisions of paragraph (1) of Article 9,
paragraph (8) of Article 11, or paragraph (6) of Article 12,
apply, interest, royalties and other disbursements paid by
an enterprise of a territory to a resident of the other
territory shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same
conditions as if they had been paid to a resident of the
first-mentioned territory. Similarly, any debts of an
enterprise of a territory to a resident of the other
territory shall, for the purpose of determining the taxable
capital of such enterprise, be deductible under the same
conditions as if they had been contracted to a resident of
the first-mentioned territory.
(4) Enterprises of a territory, the capital of which is wholly
or partly owned or controlled, directly or indirectly, by
one or more residents of the other territory, shall not be
subjected in the first-mentioned territory to any taxation
or any requirement connected therewith which is other or
more burdensome than the taxation and connected requirements
to which other similar enterprises of the first-mentioned
territory are or may be subjected.
(5) The provisions of this Article shall apply to taxes which
are the subject of this Agreement.

Article 24
Mutual Agreement Procedure
(1) Where a person considers that the actions 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. The
case must be presented within three years from the first
notification of the action resulting in taxation not in
accordance with the provisions of the Agreement.
(2) The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able
to arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
territory, with a view to the avoidance of taxation which is
not in accordance with the Agreement. Any agreement reached
shall be implemented notwithstanding any time limits in the
domestic law of the territories.
(3) The competent authorities of the territories shall endeavour
to resolve by mutual agreement any difficulties or doubts
arising as to the interpretation or application of the
Agreement. They may also consult together for the avoidance
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 purpose of reaching an agreement in
the sense of the preceding paragraphs.

Article 25
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
kind and description imposed on behalf of a territory,
insofar as the taxation thereunder is not contrary to the
Agreement. The exchange of information is not restricted by
Articles 1 and 2.
(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, the determination of appeals in relation to
the taxes referred to in paragraph 1, or the oversight of
the above. Such persons or authorities shall use the
information only for such purposes. They may disclose the
information in public court proceedings or in judicial
decisions.
(3) In no case shall the provisions of paragraphs (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.

Article 26
Procedural Rules for Taxation at Source
(1) If in one of the territories the taxes on dividends,
interest, royalties or other items of income derived by a
person who is a resident of the other territory are levied
by withholding at source, the right of the first-mentioned
territory to apply the withholding of tax at the rate
provided under its domestic law shall not be affected by the
provisions of this Agreement. The tax withheld at source
shall be refunded on application by the taxpayer if and to
the extent that it is reduced by this Agreement or ceases to
apply.
(2) Refund applications must be submitted by the end of the
fourth year following the calendar year in which the
withholding tax was applied to the dividends, interest,
royalties or other items of income.
(3) Notwithstanding paragraph (1), each territory shall provide
for procedures to the effect that payments of income subject
under this Agreement to no tax or only to reduced tax in the
territory in which the items of income arise may be made
without deduction of tax or with deduction of tax only at
the rate provided in the relevant Articles.
(4) The territory in which the items of income arise may ask for
a certificate by the competent authority on the residence in
the other territory.
(5) The competent authorities may by mutual agreement implement
the provisions of this Article and if necessary establish
other procedures for the implementation of tax reductions or
exemptions provided for under this Agreement.

Article 27
Application of the Agreement in Special Cases
This Agreement shall not be interpreted to mean that a territory
is prevented from applying its domestic legal provisions on the
prevention of tax evasion or tax avoidance. If the foregoing
provision results in double taxation, the competent authorities
shall consult each other pursuant to paragraph (3) of Article 24
on how to avoid double taxation.

Article 28
Protocol
The attached Protocol shall be an integral part of this Agreement.

Article 29
Entry into Force
(1) The Taipei Representative Office in the Federal Republic of
Germany and the German Institute in Taipei will inform each
other in writing about the adoption of this Agreement in
their respective territories. This Agreement shall enter
into force on the date of the later of these notifications.
(2) This Agreement shall have effect:
a) in respect of taxes withheld at source, for amounts paid on
or after the first day of January of the calendar year next
following that in which the Agreement entered into force;
b) in the case of other taxes, in respect of taxes levied for
periods beginning on or after the first day of January of
the calendar year next following that in which the
Agreement entered into force.

Article 30
Termination
(1) This Agreement shall remain in force indefinitely, but its
validity may be terminated by the competent authorities on
or before 30 June of any calendar year after a period of
five years from the entry into force of the Agreement. The
Taipei Representative Office in the Federal Republic of
Germany or the German Institute in Taipei will inform in
writing the respective other side of the termination.
(2) This Agreement shall cease to have effect:
a) in respect of taxes withheld at source, for amounts paid on
or after the first day of January of the calendar year next
following that in which notice of termination is given;
b) in the case of other taxes, in respect of taxes levied for
periods beginning on or after the first day of January of
the calendar year next following that in which notice of
termination is given.

The undersigned, being duly authorized, have signed this
Agreement

Signed in duplicate in the Chinese, German and English
languages, all three texts being authentic. In the case of
divergent interpretation of the Chinese and the German texts,
the English text shall prevail.

Berlin, 19 December 2011 Taipei, 28 December 2011
For the For the
Taipei Representative Office German Institute in Taipei
in the Federal Republic of
Germany
Wu-lien Wei Michael Zickerick


Protocol to the Agreement between the Taipei Representative
Office in the Federal Republic of Germany and the German
Institute in Taipei for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income and
on Capital signed on 19 December 2011 in Berlin and on 28
December 2011 in Taipei

On signing the Agreement between the Taipei Representative
Office in the Federal Republic of Germany and the German
Institute in Taipei for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect to Taxes on Income and
on Capital the signatories have in addition agreed that the
following provisions shall form an integral part of the said
Agreement:

1. With reference to Article 2:
With respect to the territory referred to in the paragraph
(3) b) of Article 2, it is understood that nothing in the
Agreement affects the imposition of the Land Value Increment
Tax.

2. With reference to Article 7:
a) Where an enterprise of a territory sells goods or
merchandise or carries on business in the other territory
through a permanent establishment situated therein, the
profits of that permanent establishment shall not be
determined on the basis of the total amount received
therefore by the enterprise but only on the basis of the
amount which is attributable to the actual activity of the
permanent establishment for such sales or business.
b) In the case of contracts, in particular for the survey,
supply, installation or construction of industrial,
commercial or scientific equipment or premises, or of
public works, where the enterprise has a permanent
establishment in the other territory, the profits of such
permanent establishment shall be determined only on the
basis of that part of the contract which is effectively
carried out by the permanent establishment in the territory
in which it is situated. Profits derived from the supply of
goods to that permanent establishment or profits related to
the part of the contract which is carried out in the
territory in which the head office of the enterprise is
situated shall be taxable only in that territory.

3. With reference to Articles 10 and 11:
Notwithstanding the provisions of Articles 10 and 11 of this
Agreement, dividends and interest may be taxed in the
territory in which they arise, and according to the law of
that territory,
a) if they are derived from rights or debt-claims carrying a
right to participate in profits, including income derived
by a silent partner (‘’ stiller Gesellschafter ’’ )from
his participation as such, or from a loan with an interest
rate linked to borrower ’ s profit (“ partiarisches
Darlehen “ )or from profit sharing bonds (‘’
Gewinnobligationen ’’ )within the meaning of the tax law
of the territory referred to in paragraph (3) a) of Article
2 of the Agreement; and
b) under the condition that they are deductible in the
determination of profits of the debtor of such income.

4. With reference to Article 11:
The term “ public institution ” includes:
a) in respect to the territory referred to in the paragraph
(3) a) of Article 2:
(i) the Deutsche Bundesbank;
(ii) the Kreditanstalt fur Wiederaufbau, and
(iii) the Deutsche Investitions- und Entwicklungsgesellschaft
;
b) the Central Bank in respect to the territory referred to in
the paragraph (3) b) of Article 2.

5. With reference to Article 25:
If in accordance with domestic law personal data are
exchanged under this Agreement, the following additional
provisions shall apply subject to the legal provisions in
effect for each territory:
a) The receiving agency may use such data only for the stated
purpose and shall be subject to the conditions prescribed
by the supplying agency.
b) The receiving agency shall on request inform the supplying
agency about the use of the supplied data and the results
achieved thereby.
c) Personal data may be supplied only to the responsible
agencies. Any subsequent supply to other agencies may be
effected only with the prior approval of the supplying
agency.
d) The supplying agency shall be obliged to ensure that the
data to be supplied are accurate and that they are
necessary for and proportionate to the purpose for which
they are supplied. If it emerges that inaccurate data or
data which should not have been supplied have been
supplied, the receiving agency shall be informed of this
without delay. The receiving agency shall be obliged to
correct or erase such data.
e) The receiving agency shall bear liability in accordance
with its domestic laws in relation to any person suffering
unlawful damage as a result of supply under the exchange of
data pursuant to this Agreement. In relation to the damaged
person, the receiving agency may not plead to its discharge
that the damage had been caused by the supplying agency.
f) If the domestic law of the supplying agency provided for
special provisions for the erasion of the personal data
supplied, that agency shall inform the receiving agency
accordingly. Irrespective of such law, supplied personal
data shall be erased once they are no longer required for
the purpose for which they were supplied.
g) The supplying and the receiving agencies shall be obliged
to keep official records of the supply and receipt of
personal data.
h) The supplying and the receiving agencies shall be obliged
to take effective measures to protect the personal data
supplied against unauthorised access, unauthorised
alteration and unauthorised disclosure.

The undersigned, being duly authorized, have signed this
Protocol.

Signed in duplicate in the Chinese, German and English
languages, all three texts being authentic. In the case of
divergent interpretation of the Chinese and the German texts,
the English text shall prevail.

Berlin, 19 December 2011 Taipei, 28 December 2011
For the For the
Taipei Representative Office German Institute in Taipei
in the Federal Republic of
Germany
Wu-lien Wei Michael Zickerick