The Taipei Economic and Cultural Office in Austria
and
The Austrian Office in Taipei
desiring to promote their 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, negotiated by the Taipei Economic and Cultural Office in
Austria and the Austrian Federal Economic Chamber, have agreed
as follows:

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

Article 2
TAXES COVERED
1. This Agreement shall apply to taxes on income imposed on
behalf of a territory or of its political subdivisions or
local authorities, irrespective of the manner in which they
are levied.
2. There shall be regarded as taxes on income all taxes imposed
on total income, or on elements of income, 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 the Agreement shall apply are in
particular:
a) in the territory in which the taxation laws administered by
the Austrian Federal Ministry of Finance are applied:
(i) the income tax (die Einkommensteuer);
(ii) the corporation tax (die Korperschaftsteuer);
b) in the territory in which the taxation laws administered by
the Ministry of Finance, Taipei are applied:
(i) the profit-seeking enterprise income tax;
(ii) the individual consolidated income tax;
(iii) the income basic tax.
4. The Agreement shall apply also to any identical or
substantially similar taxes that are imposed after the date
of signature of the Agreement in addition to, or in place of,
the existing taxes. The competent authorities of the
territories shall notify each other of any significant
changes that have been made in their taxation laws.

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 context requires, and the terms "other territory" and
"territories" shall be construed accordingly; b) the term
"person" includes an individual, a company and any
other body of persons;
c) the term "company" means any body corporate or any entity
that is treated as a body corporate for tax purposes;
d) the term "enterprise" applies to the carrying on of any
business;
e) the terms "enterprise of a territory" and "enterprise of the
other territory" mean respectively an enterprise carried on
by a resident of a territory and an enterprise carried on by
a resident of the other territory;
f) the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise of a territory,
except when the ship or aircraft is operated solely between
places in the other territory;
g) the term "competent authority" means:
(i) in the territory in which the taxation laws administered
by the Austrian Federal Ministry of Finance are applied:
the Federal Minister of Finance or his authorized
representative;
(ii) in the territory in which the taxation laws administered
by the Ministry of Finance, Taipei are applied: the
Minister of Finance or his authorized representative;
h) the term "business" includes the performance of professional
services and of other activities of an independent
character.
2. As regards the application of the Agreement at any time by 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 that territory 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. However, this provision shall not apply to
individuals who are residents of the territory referred to in
paragraph 3 b) of Article 2, as long as resident individuals
are liable to tax 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 endeavour to 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 it is incorporated.

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" also encompasses:
a) a building site, a construction, assembly or installation
project or supervisory activities in connection therewith,
but only if such site, project or activities last 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 if
activities of that nature continue (for the same or a
connected project) within a territory for a period or
periods aggregating more than six months within any
twelvemonth 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, 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. 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, 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, INLAND WATERWAYS TRANSPORT 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. Profits of an enterprise of a territory from the operation of
boats engaged in inland waterways transport shall be taxable
only in that territory.
3. For the purposes of this Article, profits from the operation
of ships or aircraft in international traffic include:
a) profits from the rental on a full (time or voyage) basis or
a bareboat basis of ships or aircraft; and
b) profits from the use, maintenance or rental of containers
(including trailers and related equipment for the transport
of containers) used for the transport of goods or
merchandise; where such rental or such use, maintenance or
rental, as the case may be, is incidental to the operation
of ships or aircraft in international traffic.
4. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.

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.
This paragraph shall not affect the taxation of the company
in respect of the profits out of which the dividends are
paid.
3. The term "dividends" as used in this Article means income
from shares, "jouissance" shares or "jouissance" rights,
mining shares, founders' shares or other rights, not being
debt-claims, participating in profits, as well as 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.
4. The provisions of paragraphs 1 and 2 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.
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 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 in force in 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 paragraph 2, interest arising in a territory
shall be exempt from tax in that territory if it is paid:
a) to the authority administering the other territory,
subdivision or local authority or the Central Bank thereof
or any financial institution wholly owned or controlled by
the other territory;
b) in respect of a loan granted, guaranteed or insured by an
approved financial institution of the other territory which
aims at promoting export;
c) on loans made between banks as long as the beneficial owner
is a bank and a resident of the other territory.
4. 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 profits, and in particular, income from government
securities and income from bonds or debentures, including
premiums and prizes attaching to such securities, bonds or
debentures. Penalty charges for late payment shall not be
regarded as interest for the purpose of this Article.
5. The provisions of paragraphs 1 to 3 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.
6. 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.
7. 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 and films or
tapes for television or radio broadcasting, any patent, trade
mark, design or model, plan, secret formula or process, or
for information concerning industrial, commercial or
scientific experience.
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 referred to in Article 6 and
situated in the other territory may be taxed in that other
territory.
2. Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an
enterprise of a territory has in the other territory,
including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise), may be
taxed in that other territory.
3. Gains derived by an enterprise of a territory from the
alienation of ships or aircraft operated in international
traffic, boats engaged in inland waterways transport or
movable property pertaining to the operation of such ships,
aircraft or boats, shall be taxable only in that territory.
4. Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2 and 3 shall be taxable only in
the territory of which the alienator is a resident.

Article 14
INCOME FROM EMPLOYMENT
1. Subject to the provisions of Articles 15, 17 and 18 salaries,
wages and other similar remuneration derived by a resident of
a territory in respect of an employment shall be taxable only
in that territory unless the employment is exercised in the
other territory. If the employment is so exercised, such
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. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic,
or aboard a boat engaged in inland waterways transport, may
be taxed in the territory of which the enterprise operating
the ship, aircraft or boat 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 SPORTSMEN
1. Notwithstanding the provisions of Articles 7 and 14, income
derived by a resident of a territory as an entertainer, such
as a theatre, motion picture, radio or television artiste, or
a musician, or as a sportsman, from his personal activities
as such exercised in the other territory, may be taxed in
that other territory.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsman in his capacity as such accrues
not to the entertainer or sportsman himself but to another
person, that income may, notwithstanding the provisions of
Articles 7 and 14, be taxed in the territory in which the
activities of the entertainer or sportsman are exercised.
3. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities performed in a territory by
artistes or sportsmen if the visit to that territory is
wholly or mainly supported by public funds of one or both of
the territories or political subdivisions or local
authorities thereof. In such a case, the income is taxable
only in the territory in which the artiste or the sportsman
is a resident.

Article 17
PENSIONS AND ANNUITIES
1. Pensions and other similar remuneration paid to a resident of
a territory in consideration of past employment shall be
taxable only in the territory in which they arise. This
provision shall also apply to annuities and to pensions and
other similar remuneration paid by an entity of a territory
under social security legislation in force in that territory
or under a public scheme organized by that territory in order
to supplement the benefits of that social security
legislation.
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 18
GOVERNMENT SERVICE
1. a) Salaries, wages and other similar remuneration, other than
a pension or annuity, 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.
2. b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other territory
if the services are rendered in that territory and the
individual is a resident of that territory who:
(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.
3. The provisions of Articles 14, 15, 16, and 17 shall apply to
salaries, wages and other similar remuneration, and to
pensions or annuities, in respect of services rendered in
connection with a business carried on by a territory or a
political subdivision, a local authority or other
above-mentioned legal entity thereof.

Article 19
STUDENTS
Payments which a student or business apprentice who is or was
immediately before visiting a territory a resident of the other
territory and who is present in the first-mentioned territory
solely for the purpose of his education or training receives for
the purpose of his maintenance, education or training shall not
be taxed in that territory, provided that such payments arise
from sources outside that territory.

Article 20
OTHER INCOME
1. Items of income of a resident of a territory, wherever
arising, not dealt with in the foregoing Articles of this
Agreement shall be taxable only in that territory.
2. The provisions of paragraph 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 and the right or property in respect of which the
income is paid is effectively connected with such permanent
establishment. In such case the provisions of Article 7 shall
apply.
3. Income derived by a resident of a territory from the other
territory under a legal claim to maintenance may not be taxed
in the first-mentioned territory if such income would be
exempt from tax according to the laws of the other territory.
4. Notwithstanding the provisions of paragraphs 1 and 2 of this
Article, items of income of a resident of a territory not
dealt with in the foregoing Articles of this Agreement and
arising in the other territory may also be taxed in that
other territory.

Article 21
ELIMINATION OF DOUBLE TAXATION
Double taxation shall be eliminated as follows:
1. In the territory in which the taxation laws administered by
the Austrian Federal Ministry of Finance are applied:
a) Where a resident of the territory in which the taxation laws
administered by the Austrian Federal Ministry of Finance are
applied derives income which, in accordance with the
provisions of this Agreement, may be taxed in the territory
in which the taxation laws administered by the Ministry of
Finance, Taipei are applied, the territory in which the
taxation laws administered by the Austrian Federal Ministry
of Finance are applied shall, subject to the provisions of
sub-paragraphs b) and c), exempt such income from tax.
b) Where a resident of the territory in which the taxation laws
administered by the Austrian Federal Ministry of Finance are
applied derives items of income which, in accordance with
the provisions of Articles 10, 11 and 12, may be taxed in
the territory in which the taxation laws administered by the
Ministry of Finance, Taipei are applied, the territory in
which the taxation laws administered by the Austrian Federal
Ministry of Finance are applied shall allow as a deduction
from the tax on the income of that resident an amount equal
to the tax paid in the territory in which the taxation laws
administered by the Ministry of Finance, Taipei are applied.
Such deduction shall not, however, exceed that part of the
tax, as computed before the deduction is given, which is
attributable to such items of income derived from the
territory in which the taxation laws administered by the
Ministry of Finance, Taipei are applied.
c) Where in accordance with any provision of the Agreement
income derived by a resident of the territory in which the
taxation laws administered by the Austrian Federal Ministry
of Finance are applied is exempt from tax in the territory
in which the taxation laws administered by the Austrian
Federal Ministry of Finance are applied, the territory in
which the taxation laws administered by the Austrian Federal
Ministry of Finance are applied may nevertheless, in
calculating the amount of tax on the remaining income of
such resident, take into account the exempted income.
d) The provisions of sub-paragraph a) shall not apply to income
derived by a resident of the territory in which the taxation
laws administered by the Austrian Federal Ministry of
Finance are applied where the territory in which the
taxation laws administered by the Ministry of Finance,
Taipei are applied applies the provisions of this Agreement
to exempt such income from tax or applies the provisions of
paragraph 2 of Article 10, 11 or 12 to such income.
2. In the territory in which the taxation laws administered by
the Ministry of Finance, Taipei are applied:
Where a resident of the territory in which the taxation laws
administered by the Ministry of Finance, Taipei are applied
derives income from the territory in which the taxation laws
administered by the Austrian Federal Ministry of Finance are
applied, the amount of tax on that income paid in the
territory in which the taxation laws administered by the
Austrian Federal Ministry of Finance are applied (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 territory in which the
taxation laws administered by the Ministry of Finance, Taipei
are applied imposed on that resident. The amount of credit,
however, shall not exceed the amount of the tax in the
territory in which the taxation laws administered by the
Ministry of Finance, Taipei are applied on that income
computed in accordance with its taxation laws and
regulations.

Article 22
NON-DISCRIMINATION
1. Nationals 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 nationals of
that other territory in the same circumstances, in particular
with respect to residence, are or may be subjected. This
provision shall, notwithstanding the provisions of Article 1,
also apply to persons who are not residents of one or both of
the territories.
2. The taxation on a permanent establishment which an enterprise
of a territory has in the other territory shall not be less
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 on account of civil status or family
responsibilities which it grants to its own residents.
3. Except where the provisions of paragraph 1 of Article 9,
paragraph 7 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.
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.
6. This Article shall not be construed so as to apply to any
provision of the laws of a territory which:
a) does not allow tax rebates, credits or exemption in relation
to dividends paid by a company that is a resident of that
territory for purposes of its tax; or
b) is designed for the purpose of the promotion of economic
development and public policy.

Article 23
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 or, if
his case comes under paragraph 1 of Article 22, to that of
the territory of which he is a national. The case must be
presented within three years from the first notification of
the action resulting in taxation not in accordance with the
provisions of the Agreement.
2. The competent authority shall endeavour, if the objection
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 elimination
of double taxation in cases not provided for in the
Agreement.
4. The competent authorities of the territories may communicate
with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs.

Article 24
EXCHANGE OF INFORMATION
1. The competent authorities of the territories shall exchange
such information as is foreseeably relevant for carrying out
the provisions of this Agreement or to the administration or
enforcement of the domestic laws concerning taxes covered by
this Agreement imposed on behalf of the territories, or of
their political subdivisions or local authorities, insofar as
the taxation thereunder is not contrary to the Agreement. The
exchange of information is not restricted by Article 1.
2. Any information received under paragraph 1 by a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws of that territory and shall
be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
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 25
LIMITATION ON BENEFITS
Notwithstanding the provisions of any other Article of the
Agreement, a resident of a territory shall not receive the
benefit of any reduction in or exemption from tax provided for
in the Agreement by the other territory if the conduct of
operations by such resident or a person connected with such
resident had for main purpose or one of main purposes to obtain
the benefits of the Agreement.

Article 26
MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS
Nothing in this Agreement shall affect the fiscal privileges of
members of diplomatic missions or consular posts under the
general rules of international law or under the provisions of
special agreements.

Article 27
ENTRY INTO FORCE
1. The Taipei Economic and Cultural Office in Austria and the
Austrian Office 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 28
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
Economic and Cultural Office in Austria or the Austrian
Office 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.

IN WITNESS WHEREOF the Plenipotentiaries of the two territories,
duly authorised thereto, have signed this Agreement.

DONE in duplicate at Vienna, on 12 July 2014, in the Chinese,
German and English languages, each text being equally authentic.
In case of divergence of interpretation the English text shall
prevail.

For the Taipei Economic and For the Austrian Office in Taipei
Cultural Office in Austria For the Austrian Federal Economic
Chamber


PROTOCOL
At the moment of signing the Agreement for the Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with
respect to Taxes on Income, this day concluded between The
Taipei Economic and Cultural Office in Austria and The Austrian
Office in Taipei, the undersigned have agreed that the following
provisions shall form an integral part of the Agreement.
1. With reference to Article 4
With respect to paragraph 2 of Article 4 of the Agreement it
is understood that resident individuals of the territory
referred to in paragraph 3 b) of Article 2 are liable to tax
only in respect of income from sources in that territory in
accordance with the Income Tax Act provided that such
residents need not include their overseas income in the basic
income in accordance with the Income Basic Tax Act.
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 Article 11
Notwithstanding the provisions of Article 11 of this
Agreement, interest may be taxed in the territory in which it
arises, and according to the law of that territory, if it is
derived from rights or debt-claims carrying a right to
participate in the profits, including the income derived by a
sleeping partner from his participation as a sleeping partner
or from participating loans and participating bonds.
4. With reference to Article 24
a) The competent authority of the applicant territory shall
provide the following information to the competent authority
of the requested territory when making a request for
information under the Agreement to demonstrate the
foreseeable relevance of the information to the request:
(i) the identity of the person under examination or
investigation;
(ii) a statement of the information sought including its nature
and the form in which the applicant territory wishes to
receive the information from the requested territory;
(iii) the tax purpose for which the information is sought;
(iv) grounds for believing that the information requested is
held in the requested territory or is in the possession or
control of a person within the jurisdiction of the
requested territory;
(v) to the extent known, the name and address of any person
believed to be in possession of the requested information;
(vi) a statement that the applicant territory has pursued all
means available in its own territory to obtain the
information, except those that would give rise to
disproportionate difficulties.
b) It is understood that the exchange of information provided
in Article 24 does not include measures which constitute
"fishing expeditions".
c) It is understood that paragraph 5 of Article 24 does not
obligate the territories to exchange information on a
spontaneous or automatic basis.
5. With reference to Article 25
It is understood that Article 25 does not prevent either
territory from applying their domestic anti-abuse rules.

IN WITNESS WHEREOF the Plenipotentiaries of the two territories,
duly authorised thereto, have signed this Protocol.

DONE in duplicate at Vienna, on 12 July 2014, in the Chinese,
German and English languages, each text being equally authentic.
In case of divergence of interpretation the English text shall
prevail.

For the Taipei Economic and For the Austrian Office in Taipei
Cultural Office in Austria For the Austrian Federal Economic
Chamber