The Taipei Economic and Cultural Office in New Zealand and the
New Zealand Commerce and Industry Office
Desiring to conclude an Agreement for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income,
Have agreed as follows:

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

ARTICLE 2 TAXES COVERED
1. The existing taxes to which this Agreement shall apply are:
(a) in the territory in respect of which the taxation laws
administered by the New Zealand Inland Revenue Department
is applied at the date of signature of this Agreement:
the income tax;
(b) in the territory in respect of which the taxation laws
administered by the Department of Taxation, Ministry of
Finance, Taipei is applied at the date of signature of this
Agreement:
the profit seeking enterprise income tax and the individual
consolidated income tax.
2. The Agreement shall apply also to any identical or
substantially similar taxes which are imposed after the date
of signature of the Agreement in addition to, or in place of,
the existing taxes. The competent authorities shall notify
each other within a reasonable period of time of any
significant changes which have been made in the taxation laws
of their respective territories.
3. Notwithstanding the provisions of paragraphs 1 and 2, the
taxes covered by the Agreement do not include any amount
which represents a penalty or interest imposed under the laws
of either territory. However, the provisions of this
paragraph do not apply to Article 22.

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
subparagraph 1(a) or 1(b) of Article 2, as the case
requires;
(b) the term “company” means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(c) the term “competent authority” means:
(i) in the case of the territory referred to in subparagraph
1(a) of Article 2, the Commissioner of Inland Revenue or
a representative authorised by the Commissioner;
(ii) in the case of the territory referred to in subparagraph
1(b) of Article 2, the Director-General of the
Department of Taxation, Ministry of Finance or a
representative authorised by the Director-General.
(d) the terms “enterprise of a territory” and “enterprise of
the other territory” mean respectively an enterprise
carried on by a resident of a territory and an enterprise
carried on by a resident of the other territory, as the
context requires;
(e) 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 from a
place or between places in the other territory;
(f) the term “natural resources” includes standing timber and
fish;
(g) For the purposes of Articles 10, 11 and 12, the term
"paid", in relation to any amount, includes distributed
(whether in cash or other property), credited or dealt with
on behalf of a person or at that person's direction; and
the terms "pay", "payable" and "payment" have corresponding
meanings;
(h) the term “person” includes an individual, a company and
any other body of persons;
(i) the terms “resident of a territory for the purposes of its
tax” and “resident of that territory for the purposes of
its tax”, in relation to a company, includes, in the case
of the territory referred to in subparagraph 1(b) of
Article 2 and in relation to that territory’s tax, a
company which is incorporated in that territory.
2. For the purposes of Articles 10, 11 and 12, a trustee subject
to tax in a territory in respect of dividends, interest or
royalties shall be deemed to be beneficially entitled to such
dividends, interest or royalties.
3. For the purposes of Articles 11, 12 and 15, expenditure that
is deductible in determining income, profits or gains
attributable to a permanent establishment or fixed base is
deemed to be borne by that permanent establishment or fixed
base.
4. As regards the application of this Agreement at any time in a
territory, any term not defined in the Agreement shall,
unless the context otherwise requires, have the meaning which
it has at that time under the laws of that territory
concerning 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 RESIDENCE
1. For the purposes of this Agreement, a person is a resident of
a territory if, under the laws of that territory, the person
is liable to tax by reason of domicile, residence, place of
head office, place of management or incorporation or other
criterion of a similar nature.
2. A person is not a resident of a territory for the purposes of
this Agreement if the person is liable to tax in that
territory in respect only of income from sources in that
territory, provided that this paragraph shall not apply to
individuals resident in the territory referred to in
subparagraph 1(b) of Article 2.
3. Where by reason of the preceding provisions of this Article
an individual is a resident of both territories, then the
status of the individual shall be determined as follows:
(a) the individual shall be deemed to be a resident solely of
the territory in which a permanent home is available to the
individual; if a permanent home is available to the
individual in both territories, the individual shall be
deemed to be a resident solely of the territory with which
the individual's personal and economic relations are closer
(centre of vital interests);
(b) if the territory in which the individual’s centre of vital
interests cannot be determined, or if the individual does
not have a permanent home available in either territory,
the individual shall be deemed to be a resident solely of
the territory in which the individual has an habitual abode;
(c) if the individual has an habitual abode in both territories
or in neither of them, the competent authorities of the
territories shall settle the question by mutual agreement.
4. Where by reason of the provisions of paragraphs 1 and 2 a
person other than an individual is a resident of both
territories then it shall be deemed to be a resident solely
of the territory in which its place of effective management
is situated.

ARTICLE 5 PERMANENT ESTABLISHMENT
1. For the purposes of this Agreement, the term "permanent
establishment" means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3. A building site, or a construction, installation or assembly
project constitutes a permanent establishment if it lasts for
more than 12 months.
4. An enterprise shall be deemed to have a permanent
establishment in a territory and to carry on business through
that permanent establishment if, for more than 12 months:
(a) it carries on supervisory activities in that territory in
connection with a building site or a construction,
installation or assembly project which is being undertaken
in that territory; or
(b) it carries on activities in that territory which consist
of, or which are connected with, the exploration or
exploitation of natural resources situated in that
territory; or
(c) substantial equipment is being used in that territory by,
for or under contract with the enterprise.
5. For the purposes of determining the duration of activities
under paragraphs 3 and 4, the period during which activities
are carried on in a territory by an enterprise associated
with another 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
connected with the activities carried on in that territory by
the last-mentioned enterprise, provided that any period
during which two or more associated enterprises are carrying
on concurrent activities is counted only once. An enterprise
shall be deemed to be associated with another enterprise if
one is controlled directly or indirectly by the other, or if
both are controlled directly or indirectly by a third person
or persons.
6. An enterprise shall not be deemed to have a "permanent
establishment" merely by reason of:
(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to
the enterprise; or
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage, display or delivery; or
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise; or
(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; or
(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, such as
advertising or scientific research.
7. Notwithstanding the provisions of paragraphs 1 and 2, a
person acting in a territory on behalf of an enterprise of
the other territory - other than an agent of an independent
status to whom paragraph 8 applies - shall be deemed to be a
permanent establishment of that enterprise in the
first-mentioned territory if the person has and habitually
exercises in the first-mentioned territory an authority to
conclude contracts on behalf of that enterprise, unless the
activities of that person are limited to those described in
paragraph 6 and, 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.
8. An enterprise of a territory shall not be deemed to have a
permanent establishment in the other territory merely because
it carries on business in that other territory through a
person who is a broker, general commission agent or any other
agent of an independent status, and the broker or agent is
acting in the ordinary course of its business.
9. 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, forestry or
fishing) 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 laws of the territory in which the property
in question is situated. The term shall in any case include:
(a) a lease of land and any other interest in or over land,
whether or not that land is improved;
(b) a right to explore for or exploit mineral, oil or gas
deposits, or other natural resources;
(c) a right to receive variable or fixed payments either:
(i) as consideration for or in respect of the exploitation
of, or
(ii) for the right to explore for or exploit, mineral, oil or
gas deposits, or other natural resources. But ships,
boats and aircraft shall not be regarded as immovable
property.
3. The provisions of paragraph 1 shall apply to income derived
from the direct use, letting, or use in any other form of
immovable property.
4. Any interest or right referred to in paragraph 2 shall be
regarded as being situated where the land, mineral, oil or
gas deposits, quarries or natural resources, as the case may
be, are situated or where the exploration or exploitation may
take place.
5. The provisions of paragraphs 1, 3 and 4 shall also apply to
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.

ARTICLE 7 BUSINESS PROFITS
1. The profits of an enterprise of a territory shall be taxable
only in that territory unless the enterprise carries on
business in the other territory through a permanent
establishment situated in that other territory. If the
enterprise carries on business in that manner, 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 in that other
territory, 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 or with other enterprises with which it deals.
3. In the determination of the profits of a permanent
establishment, there shall be allowed as deductions expenses
of the enterprise which are incurred for the purposes of the
permanent establishment (including executive and general
administrative expenses so incurred), whether incurred in the
territory in which the permanent establishment is situated or
elsewhere. However, no deduction is allowable in respect of
expenses which are not deductible under the laws of the
territory in which the permanent establishment is situated.
4. 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.
5. Nothing in this Article shall affect the application of any
laws of a territory relating to the determination of the tax
liability of a person in cases where the information
available to the competent authority of that territory is
inadequate to determine the profits to be attributed to a
permanent establishment, provided that those laws shall be
applied, so far as the information available to the competent
authority permits, consistently with the principles of this
Article.
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:
(a) a resident of a territory is beneficially entitled, whether
directly or through one or more interposed trusts, to a
share of the business profits of an enterprise carried on
in the other territory by the trustee of a trust other than
a trust which is treated as a company for tax purposes; and
(b) in relation to that enterprise, that trustee would, in
accordance with the principles of Article 5, have a
permanent establishment in that other territory,
the enterprise carried on by the trustee shall be deemed to
be a business carried on in the other territory by that
resident through a permanent establishment situated in that
other territory and that share of business profits shall be
attributed to that permanent establishment.
8. Where profits include items of income or gains 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.
9. Nothing in this Article shall affect any provisions of the
laws of either territory at any time in force as they affect
the taxation of any income or profits from the business of
any form of insurance.

ARTICLE 8 SHIP AND AIRCRAFT OPERATIONS
1. Profits from ship or aircraft operations derived by a
resident of a territory shall be taxable only in that
territory.
2. Notwithstanding the provisions of paragraph 1, such profits
may be taxed in the other territory where they are profits
from ship or aircraft operations confined solely to places in
that other territory.
3. The profits to which the provisions of paragraph 1 and 2
apply shall include profits from:
(a) the lease of ships or aircraft on a full time, voyage or
bareboat charter basis, and of containers and related
equipment, which is merely incidental to the operation of
ships or aircraft by the lessor, provided that the leased
ships or aircraft, or the containers and related equipment,
are used in operations by the lessee; and
(b) the share of profits from ship or aircraft operations
derived by a resident of a territory through participation
in a pool, a joint business or operating organisation or in
an international agency.
4. For the purposes of this Article, profits derived from the
carriage by ships or aircraft of passengers, livestock, mail,
goods or merchandise which are shipped in a territory for
discharge at a place in that territory shall be treated as
profits from ship or aircraft operations confined solely to
places in that territory.
5. For the purposes of paragraphs 1 and 2, cargo handling within
a territory shall not be regarded as ship or aircraft
operations unless that cargo handling would constitute
international traffic as defined in paragraph (1)(e) of
Article 3.

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 operate between the two
enterprises in their commercial or financial relations which
differ from those which might be expected to operate between
independent enterprises dealing wholly independently with one
another, then any profits which, but for those conditions,
might have been expected to accrue 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. Nothing in this Article shall affect the application of any
laws of a territory relating to the determination of the tax
liability of a person, including determinations in cases
where the information available to the competent authority of
that territory is inadequate to determine the profits to be
attributed to an enterprise, provided that those laws shall
be applied, so far as the information available to the
competent authority permits, consistently with the principles
of this Article.
3. Where profits on which an enterprise of a territory has been
charged to tax in that territory are also included, by virtue
of paragraph 1 or 2, in the profits of an enterprise of the
other territory and charged to tax in that other territory,
and the profits so included are profits which might have been
expected to have accrued to that enterprise of the other
territory if the conditions operative between the enterprises
had been those which might have been expected to have
operated between independent enterprises dealing wholly
independently with one another, then the competent authority
of the first-mentioned territory shall make an appropriate
adjustment to the amount of tax charged on those profits in
the first-mentioned territory. In determining such an
adjustment, due regard shall be had to the other provisions
of this Agreement and for this purpose the competent
authorities shall if necessary consult each other.

ARTICLE 10 DIVIDENDS
1. Dividends paid by a company which is a resident of a
territory for the purposes of its tax, being dividends to
which a resident of the other territory is beneficially
entitled, may be taxed in that other territory.
2. Those dividends may also be taxed in the territory of which
the company paying the dividends is a resident for the
purposes of its tax, and according to the laws of that
territory, but the tax so charged shall not exceed 15 per
cent of the gross amount of the dividends.
3. The term "dividends" in this Article means income from shares
and other income assimilated to income from shares by the
laws, relating to tax, of the territory of which the company
making the payment is a resident for the purposes of its tax.
4. The provisions of paragraphs 1 and 2 shall not apply if the
person beneficially entitled to 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 in that
other territory, or performs in that other territory
independent personal services from a fixed base situated in
that other territory, and the holding in respect of which the
dividends are paid is effectively connected with that
permanent establishment or fixed base. In such case, the
provisions of Article 7 or 14, as the case may be, shall
apply.
5. Where a company which is a resident of a territory derives
profits or income from the other territory, that other
territory may not impose any tax on the dividends paid by
that company, except insofar as such dividends are paid to a
resident of that other territory or insofar as the holding in
respect of which the dividends are paid is effectively
connected with a permanent establishment or fixed base 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 that other
territory. This paragraph shall not apply in relation to
dividends paid by any company which is a resident of both
territories for the purposes of each territory’s tax.

ARTICLE 11 INTEREST
1. Interest arising in a territory, being interest to which a
resident of the other territory is beneficially entitled, may
be taxed in that other territory.
2. That interest may be taxed in the territory in which it
arises, and according to the laws of that territory, but the
tax so charged shall not exceed 10 per cent of the gross
amount of the interest.
3. The term "interest" 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
profits, and in particular, interest from government
securities and income from bonds or debentures, including
premiums and prizes attaching to such bonds or debentures, as
well as all other income assimilated to income from money
lent by the laws, relating to tax, of the territory in which
the income arises, but does not include any income which is
treated as a dividend under Article 10.
4. The provisions of paragraphs 1 and 2 shall not apply if the
person beneficially entitled to 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 in that other territory, or performs
in that other territory independent personal services from a
fixed base situated in that other territory, and the
debt-claim in respect of which the interest is paid is
effectively connected with that permanent establishment or
fixed base. In such case, the provisions of Article 7 or 14,
as the case may be, shall apply.
5. Interest shall be deemed to arise in a territory when the
payer is an authority of that territory, or a sub-division,
or a local authority of that territory or a person who is a
resident of that territory for the purposes of its tax.
Where, however, the person paying the interest, whether the
person is a resident of a territory or not, has in a
territory a permanent establishment or fixed base in
connection with which the debt-claim on which the interest is
paid was incurred, and that interest is borne by such
permanent establishment or fixed base, then the interest
shall be deemed to arise in the territory in which the
permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the person beneficially entitled to the interest, 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 might have been expected to
have been agreed upon in the absence of that relationship by
the payer and the person beneficially entitled, the
provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the
amount of the interest paid shall remain taxable according to
the laws, relating to tax, of each territory, subject to the
other provisions of this Agreement.

ARTICLE 12 ROYALTIES
1. Royalties arising in a territory, being royalties to which a
resident of the other territory is beneficially entitled, may
be taxed in that other territory.
2. Those royalties may be taxed in the territory in which they
arise, and according to the laws of that territory, but the
tax so charged shall not exceed 10 per cent of the gross
amount of the royalties.
3. The term "royalties" in this Article means payments of any
kind, whether periodical or not, and however described or
computed, to the extent to which they are made as
consideration for:
(a) the use of, or the right to use, any copyright, patent,
trademark, design or model, plan, secret formula or
process, or other like property or right; or
(b) the use of, or the right to use, any industrial, scientific
or commercial equipment; or
(c) the supply of scientific, technical, industrial or
commercial knowledge or information; or
(d) the supply of any assistance that is ancillary and
subsidiary to, and is furnished as a means of enabling the
application or enjoyment of, any such property or right as
is mentioned in subparagraph (a), any such equipment as is
mentioned in subparagraph (b) or any such knowledge or
information as is mentioned in subparagraph (c); or
(e) the use of, or the right to use, any:
(i) motion picture film; or
(ii) film or videotape or any other recording for use in
connection with television; or
(iii) tape or any other recording for use in connection with
radio broadcasting; or
(f) the reception of, or the right to receive, visual images or
sounds, or both, transmitted to the public by:
(i) satellite; or
(ii) cable, optic fibre or similar technology; or
(g) the use in connection with television or radio
broadcasting, or the right to use in connection with
television or radio broadcasting, visual images or sounds,
or both, transmitted by:
(i) satellite; or
(ii) cable, optic fibre or similar technology; or
(h) total or partial forbearance in respect of the use or
supply of any property or right referred to in this
paragraph.
4. The provisions of paragraphs 1 and 2 shall not apply if the
person beneficially entitled to 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 in that other territory, or performs
in that other territory independent personal services from a
fixed base situated in that other territory, and the property
or right in respect of which the royalties are paid is
effectively connected with that permanent establishment or
fixed base. In such case, the provisions of Article 7 or 14,
as the case may be, shall apply.
5. Royalties shall be deemed to arise in a territory when the
payer is an authority of that territory, or a sub-division,
or a local authority of that territory or a person who is a
resident of that territory for the purposes of its tax.
Where, however, the person paying the royalties, whether the
person is a resident of a territory or not, has in a
territory a permanent establishment or fixed base in
connection with which the liability to pay the royalties was
incurred, and the royalties are borne by such permanent
establishment or fixed base, then the royalties shall be
deemed to arise in the territory in which the permanent
establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the person beneficially entitled to the royalties, or
between both of them and some other person, the amount of the
royalties, having regard to what they are paid for, exceeds
the amount which might have been expected to have been agreed
upon in the absence of that relationship by the payer and the
person beneficially entitled, the provisions of this Article
shall apply only to the last-mentioned amount. In that case
the excess part of the amount of the royalties paid shall
remain taxable according to the laws, relating to tax, of
each territory, subject to the other provisions of this
Agreement.

ARTICLE 13 ALIENATION OF PROPERTY
1. Income, profits or gains derived by a resident of a territory
from the alienation of immovable property (as defined in
paragraph 2 of Article 6) situated in the other territory may
be taxed in that other territory.
2. Income, profits or gains from the alienation of property,
other than immovable property, forming part of the business
property of a permanent establishment which an enterprise of
a territory has in the other territory or pertaining to a
fixed base available to a resident of a territory in the
other territory for the purpose of performing independent
personal services, including income, profits or gains from
the alienation of that permanent establishment (alone or with
the whole enterprise) or of that fixed base, may be taxed in
that other territory.
3. Income, profits or gains from the alienation of ships or
aircraft operated in international traffic, or of property
(other than immovable property) pertaining to the operation
of those ships or aircraft, shall be taxable only in the
territory in which the enterprise alienating such ships,
aircraft or other property is a resident.
4. Nothing in this Agreement affects the application of the laws
of a territory relating to the taxation of gains of a capital
nature derived from the alienation of any property other than
that to which any of the preceding paragraphs of this Article
apply.
5. For the purposes of this Article, the situation of immovable
property shall be determined in accordance with paragraph 4
of Article 6.

ARTICLE 14 INDEPENDENT PERSONAL SERVICES
1. Income derived by an individual who is a resident of a
territory in respect of professional services or other
independent activities shall be taxable only in that
territory unless such services are performed in the other
territory and:
(a) the individual is present in the other territory for a
period or periods exceeding in the aggregate 183 days in
any 12 month period commencing or ending in the year of
income concerned; or
(b) a fixed base is regularly available to the individual in
the other territory for the purpose of performing the
individual's activities.
If the provisions of subparagraphs (a) or (b) are satisfied,
the income may be taxed in that other territory but only so
much of it as is attributable to activities performed during
such period or periods or from that fixed base.
2. The term "professional services" includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as in the performance of the
independent activities of physicians, lawyers, engineers,
architects, dentists and accountants.

ARTICLE 15 DEPENDENT PERSONAL SERVICES
1. Subject to the provisions of Articles 16, 18 and 19,
salaries, wages and other similar remuneration derived by an
individual who is 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
from that exercise may be taxed in that other territory.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by an individual who is 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 that other territory for a
period or periods not exceeding in the aggregate 183 days
in any 12 month period commencing or ending in the year of
income concerned; and
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of that other territory; and
(c) the remuneration is not borne by a permanent establishment
or fixed base which the employer has in that other
territory.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic
by an enterprise of a territory may be taxed in that
territory.

ARTICLE 16 DIRECTORS’ FEES
Directors' fees and similar payments derived by a resident of a
territory in that person's 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 17 ENTERTAINERS AND SPORTSPERSONS
1. Notwithstanding the provisions of Articles 14 and 15, income
derived by entertainers (such as theatrical, motion picture,
radio or television artistes and musicians) and sportspersons
from their personal activities as such may be taxed in the
territory in which these activities are exercised.
2. Where income in respect of the personal activities of an
entertainer or a sportsperson as such accrues not to that
entertainer or sportsperson but to another person, that
income may, notwithstanding the provisions of Articles 7, 14
and 15, be taxed in the territory in which the activities of
the entertainer or sportsperson are exercised.

ARTICLE 18 PENSIONS AND ANNUITIES
1. Pensions and annuities paid to a resident of a territory
shall be taxable only in that territory.
2. The term “annuity” means a stated sum payable periodically
at stated times, during life or during a specified or
ascertainable period of time, under an obligation to make the
payments in return for adequate and full consideration in
money or money's worth.

ARTICLE 19 STUDENTS
Where a student, who is a resident of a territory or who was a
resident of that territory immediately before visiting the other
territory and who is temporarily present in that other territory
solely for the purpose of the student's education, receives
payments from sources outside that other territory for the
purpose of the student's maintenance or education, those
payments shall be exempt from tax in that other territory.

ARTICLE 20 OTHER INCOME
1. Items of income of a resident of a territory, wherever
arising, not dealt with in the preceding Articles of this
Agreement shall be taxable only in that territory except that
if such income is derived from sources within the other
territory, that income may also be taxed in that other
territory.
2. The provisions of paragraph 1 shall not apply to income,
other than income from immovable property as defined in
paragraph 2 of Article 6, if the recipient of such income,
being a resident of a territory, carries on business in the
other territory through a permanent establishment situated
therein, or performs in that other territory independent
personal services from a fixed base situated therein, and the
right or property in respect of which the income is paid is
effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or 14,
as the case may be, shall apply.

ARTICLE 21 ELIMINATION OF DOUBLE TAXATION
Subject to the provisions of the laws of a territory from time
to time in force relating to the allowance of a credit against
tax payable in that territory of tax paid outside that territory
(which shall not affect the general principle of this Article),
tax paid under the laws of the 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 this
Agreement, whether directly or by deduction, in respect of
income derived by a person who is a resident of the
first-mentioned territory from sources in the other territory
shall be allowed as a credit against tax payable in the
first-mentioned territory in respect of that income. 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 22 MUTUAL AGREEMENT PROCEDURE
1. Where a person who is a resident of a territory considers
that actions in one or both of the territories result or will
result for that person in taxation not in accordance with the
provisions of this Agreement, that person may, irrespective
of the remedies provided by the domestic laws of the
territories, present a case to the competent authority of the
territory of which the person is a resident. The case must
be presented within three years from the first notification
of the action which results 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 not in
accordance with this Agreement. Any agreement reached shall
be implemented notwithstanding any time limits in the
domestic laws of the territories.
3. The competent authorities shall endeavour to resolve by
mutual agreement any difficulties or doubts arising as to the
interpretation or application of this Agreement. They may
also consult together for the elimination of double taxation
in cases not provided for in the Agreement.
4. The competent authorities may communicate with each other
directly for the purpose of giving effect to the provisions
of this Agreement.

ARTICLE 23 EXCHANGE OF INFORMATION
1. The competent authorities of the territories shall exchange
such information as is necessary for carrying out the
provisions of this Agreement or of the domestic laws of the
territories concerning taxes covered by the Agreement insofar
as the taxation under those laws is not contrary to the
Agreement. The exchange of information is not restricted by
Article 1. Any information received by the competent
authority of a territory shall be treated as secret in the
same manner as information obtained under the domestic laws
of that territory and shall be disclosed only to persons or
authorities (including courts and administrative bodies)
concerned with the assessment or collection of, the
enforcement or prosecution in respect of, or the
determination of appeals in relation to, the taxes covered by
the Agreement. Such persons or authorities shall use the
information only for such purposes.
2. In no case shall the provisions of paragraph 1 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.

ARTICLE 24 ENTRY INTO FORCE
This Agreement shall enter into force on the date on which the
New Zealand Commerce and Industry Office and the Taipei Economic
and Cultural Office in New Zealand notify each other in writing
that the last of such things has been done as is necessary to
give this Agreement effect in the domestic laws of the
respective territories. This Agreement shall have effect:
(a) in both territories, in respect of withholding tax on
income, profits or gains derived by a non-resident, for
amounts paid or credited on or after the first day of the
second month next following the date on which the Agreement
enters into force;
(b) in respect of other taxes:
(i) in the territory in which the taxation laws administered
by the New Zealand Inland Revenue Department is applied,
in relation to income, profits or gains of any year of
income beginning on or after 1 April in the calendar year
next following the date on which the Agreement enters
into force;
(ii) in the territory in which the taxation laws administered
by the Department of Taxation, Ministry of Finance,
Taipei is applied, in relation to income, profits or
gains of any year of income beginning on or after 1
January in the calendar year next following the date on
which the Agreement enters into force;
(c) in both territories, in respect to tax in relation to
income of aircraft operations to which Article 8 applies,
on or after 1 January 1996.

ARTICLE 25 TERMINATION
This Agreement shall continue in force indefinitely, but the New
Zealand Commerce and Industry Office or the Taipei Economic and
Cultural Office in New Zealand may, on or before 30 June in any
calendar year beginning after the expiration of 5 years from the
date of its entry into force, give to the other written notice
of termination and, in that event, the Agreement shall cease to
be effective:
(a) in both territories, in respect of withholding tax on
income, profits or gains derived by a non-resident, for
amounts paid or credited on or after the first day of the
second month next following that in which the notice of
termination is given;
(b) in respect of other taxes:
(i) in the territory in which the taxation laws administered
by the New Zealand Inland Revenue Department is applied,
in relation to income, profits or gains of any year of
income beginning on or after 1 April in the calendar year
next following that in which the notice of termination is
given;
(ii) in the territory in which the taxation laws administered
by the Department of Taxation, Ministry of Finance,
Taipei is applied, in relation to income, profits or
gains of any year of income beginning on or after 1
January in the calendar year next following that in
which the notice of termination is given.

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

DONE in duplicate at Auckland this 11th day of November 1996 in
the English and Chinese languages, both texts being equally
authentic. In the case of any divergence of meaning between the
two texts, the English text shall prevail.


FOR THE TAIPEI ECONOMIC FOR THE NEW ZEALAND
AND CULTURAL OFFICE IN COMMERCE AND INDUSTRY
NEW ZEALAND OFFICE
Frank C. Lin A. P. F. Browne



ANNEX

At the signing of the Agreement concluded today between the
Taipei Economic and Cultural Office in New Zealand and the New
Zealand Commerce and Industry Office for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income, the undersigned have agreed upon the following
additional provisions which shall form an integral part of the
said Agreement.

1. Non-Discrimination
That discrimination in the tax laws of either territory on
the grounds of nationality is undesirable. With this in
view, it is agreed that:
(a) if either competent authority identifies an issue of
discrimination contrary to the spirit of this Agreement,
the competent authorities shall consult with a view to
removing that discrimination; and
(b) if at any time after the date of signature of this
Agreement, New Zealand includes a non-discrimination
article in any of its double taxation conventions, the New
Zealand Commerce and Industry Office shall without undue
delay inform the Taipei Economic and Cultural Office in New
Zealand and they shall enter into negotiations with a view
to concluding a non-discrimination article in this present
Agreement.
2. In respect of Article 10
It is agreed that if in any future double taxation convention
with any State, New Zealand limits its taxation at source on
dividends to a rate lower than the one provided for in that
Article, the New Zealand Commerce and Industry Office shall
without undue delay inform the Taipei Economic and Cultural
Office in New Zealand and they shall review that article with
a view to amending this Agreement to provide the same
treatment.
Done in duplicate at Auckland this 11th day of November 1996,
in the English and Chinese languages, both texts being
equally authentic. In the case of any divergence of meaning
between the two texts, the English text shall prevail.


FOR THE TAIPEI ECONOMIC FOR THE NEW ZEALAND
AND CULTURAL OFFICE IN COMMERCE AND INDUSTRY
NEW ZEALAND OFFICE
Frank C. Lin A.P.F. Browne