Arrangement for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income to
be implemented by the Taiwan Taxation Agency and the French
Public Finance General Directorate (hereafter referred to as “
the Arrangement”).

ARTICLE 1
PERSONS COVERED
This Arrangement shall apply to persons who are residents of one
or both of the territories referred to in paragraph 3 of Article
2.

ARTICLE 2
TAXES COVERED
1.This Arrangement shall apply to taxes on income imposed on
behalf of each 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 Arrangement shall apply are in
particular:
a)in the territory in which the taxation laws administered by
the Taiwan Taxation Agency are applied:
(i) the profit-seeking enterprise income tax;
(ii) the individual consolidated income tax;
(iii) the income basic tax;
including the surcharges levied thereon, whether or not they
are collected by withholding at source;
b)in the territory in which the taxation law administered by
the French Public Finance General Directorate (Direction
Generale des Finances Publiques) is applied:
(i) the income tax ("l'impot sur le revenu");
(ii) the corporation tax ("l'impot sur les societes");
(iii) the contributions on corporation tax ( "les contributions
sur l’impot sur les societes");
(iv) the tax on salaries (‘la taxe sur les salaires’)
including any withholding tax, prepayment or advance payment
with respect to the aforesaid taxes;
4.The Arrangement shall apply also to any identical or
substantially similar taxes which are imposed after the
implementation of the Arrangement 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 the taxation laws of the respective
territories.
5.With respect to the territory in which the taxation laws
administered by the Taiwan Taxation Agency are applied,
nothing in the Arrangement affects the imposition of the Land
Value Increment Tax.

ARTICLE 3
GENERAL DEFINITIONS
1.For the purposes of this Arrangement, unless the context
otherwise requires:
a)the term "territory" means the territory referred to in
paragraph 3 a) or 3 b) of Article 2, as the context
requires. The terms "other territory" and "territories"
shall be construed accordingly. The territory referred to in
paragraph 3 b) of Article 2 does not include the
"Collectivites d'Outre-Mer";
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 that has its
place of effective management in 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 case of the territory in which the taxation laws
administered by the Taiwan Taxation Agency are applied,
the Minister of Finance or his authorized representative;
(ii) in the case of the territory in which the taxation law
administered by the French Public Finance General
Directorate (Direction Generale des Finances Publiques) is
applied, the Minister in charge of the finance or his
authorised 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 Arrangement 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 laws of that territory for the purposes of
the taxes to which the Arrangement 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 Arrangement, the term “resident of a
territory” means any person who, under the laws of that
territory, is liable to tax therein by reason of his domicile,
residence, place of incorporation, place of management or any
other criterion of a similar nature, and also includes the
authority administering a territory and any political
subdivision or territorial or local authority thereof and the
public law entities in that territory or its political
subdivisions or territorial or local authorities.
2.However, a person is not a resident of a territory for the
purposes of this Arrangement if that person is liable to tax
in that territory in respect only of income from sources in
that territory.
3.Where by reason of the provisions of paragraph 1 an individual
is a resident of both territories, then his status shall be
determined as follows:
a)he shall be deemed to be a resident only of the territory in
which he has a permanent home available to him; if he has a
permanent home available to him in both territories, he
shall be deemed to be a resident only of the territory with
which his personal and economic relations are closer (centre
of vital interests);
b)if the territory in which he has his centre of vital
interests cannot be determined, or if he has not a permanent
home available to him in either territory, he shall be
deemed to be a resident only of the territory in which he
has an habitual abode;
c)if he has an habitual abode in both territories or in
neither of them, the competent authorities of the
territories shall settle the question by mutual agreement.
4.Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both territories,
the competent authorities of the territories shall endeavour
to determine by mutual agreement the territory of which such
person shall be deemed to be a resident for the purposes of
the Arrangement, having regard to its place of effective
management, the place where it is incorporated or otherwise
constituted and any other relevant factors. In the absence of
such agreement, such person shall not be entitled to any
relief or exemption from tax provided by this Arrangement
except to the extent and in such manner as may be agreed upon
by the competent authorities of the territories.
5.The term “resident of a territory” shall include the
following:
a)in the case of the territory referred to in paragraph 3 a)
of Article 2, a sole-proprietorship or a partnership
registered in the territory and of which the sole proprietor
or all partners of which are personally liable to tax
therein in respect of their part of the profits of the
sole-proprietorship or partnership pursuant to the domestic
laws of this territory;
b)in the case of the territory referred to in paragraph 3 b)
of Article 2, any partnership or group of persons which has
its place of effective management in this territory and of
which all shareholders, associates or other members of which
are personally liable to tax therein in respect of their
part of the profits of those partnerships or groups of
persons pursuant to the domestic laws of this territory.

ARTICLE 5
PERMANENT ESTABLISHMENT
1.For the purposes of this Arrangement, 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, but only if such site or project lasts more than
six months;
b)the furnishing of services including consultancy or
managerial services, by an enterprise of a territory through
employees or other personnel engaged by the enterprise for
such purpose, but only where activities of that nature
continue (for the same or connected project) in the other
territory for a period or periods exceeding in the aggregate
270 days within any fifteen-month 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 l 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 laws 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 l shall apply to income derived
from the direct use, letting, or use in any other form of
immovable property.
4.The provisions of paragraphs l and 3 shall also apply to the
income from immovable property of an enterprise.
5.Where shares or other rights in a company, trust or any other
institution or entity give an entitlement to enjoy of
immovable property situated in a territory and held by that
company, trust, institution or entity, income derived from the
direct use, letting or use in any other form of that right of
enjoyment may be taxed in that territory notwithstanding the
provisions of Article 7.

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 Arrangement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
8.In respect of this Article:
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 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,
the profits attributable to such permanent establishment
shall not be determined on the basis of the total amount of
the contract, but only on the basis of that part of the
contract which is effectively carried out by the permanent
establishment in the territory where it is situated. The
profits related to the part of the contract which is carried
out in the territory of which the enterprise is a resident
shall be taxable only in that territory.

ARTICLE 8
SHIPPING AND AIR TRANSPORT
1.Profits from the operation of ships or aircraft in
international traffic shall be taxable only in the territory
in which the place of effective management of the enterprise
is situated.
2.If the place of effective management of a shipping enterprise
is aboard a ship, then it shall be deemed to be situated in
the territory of which the operator of the ship is a resident.
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;
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;
c)currency adjustment, bunker surcharge, port congestion
surcharge, overlength and overweight surcharge,
trans-shipment surcharge, terminal handling charge,
demurrage and detention charges, container handling fee and
any other/similar surcharge or additional as they may occur;
where such rental or such use, maintenance, rental or charge,
as the case may be, is incidental to the operation of ships or
aircraft in international traffic.
4.The provisions of paragraphs l shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency, but only to so much of the
profits so derived as is attributable to the participation in
proportion to its share in the joint operation.

ARTICLE 9
ASSOCIATED ENTERPRISES
1.Where
a)an enterprise of a territory participates directly or
indirectly in the management, control or capital of an
enterprise of the other territory, or
b)the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
territory and an enterprise of the other territory, and in
either case conditions are made or imposed between the two
enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by
reason of those conditions, have not so accrued, may be
included in the profits of that enterprise and taxed
accordingly.
2.Where a territory includes in the profits of an enterprise of
that territory – and taxes accordingly – profits on which an
enterprise of the other territory has been charged to tax in
that other territory and the profits so included are profits
which would have accrued to the enterprise of the
first-mentioned territory if the conditions made between the
two enterprises had been those which would have been made
between independent enterprises, then that other territory
shall make an appropriate adjustment to the amount of the
taxes charged therein on those profits. In determining such
adjustment, due regard shall be had to the other provisions of
this Arrangement 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.a)Dividends mentioned in paragraph 1 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.
b)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
treated as a distribution by the taxation 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.
6.If the territory referred to in sub-paragraph 3 a) of Article
2 exempts dividends from tax or limits its taxation at source
on dividends to a rate lower than the rate provided for in
this Arrangement, pursuant to a convention, an agreement or a
protocol signed after 30th September 2009 with a member state
of the OECD, the same exemption or lower rate shall
automatically apply under this Arrangement, as if it had been
specified in this Arrangement, provided that the beneficial
owner of the dividends meets the same conditions for the
exemption or the reduced rate as those required in the above
mentioned convention, agreement or protocol.

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 or a
local authority or the Central Bank or a public law entity
thereof in relation to any loan, debt-claim or credit
granted by any such bodies;
b)in respect of a loan granted, guaranteed or insured or a
credit extended, guaranteed or insured by an approved
instrumentality of the other territory which aims at
promoting export, or under a scheme organised by an
authority administering a territory or a subdivision thereof
or by a local authority in order to promote the 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. However, the term "interest" shall not include for
the purpose of this Article penalty charges for late payment
and interest on commercial debt-claims resulting from deferred
payments for equipment, good, merchandise or services; in
these cases, the provisions of Article 7 shall apply.
5.The provisions of paragraphs 1, 2 and 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 Arrangement.

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 recipient is the beneficial owner of the royalties
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 Arrangement.
7.Payments received as a consideration for technical services,
including studies or surveys of a scientific, geological or
technical nature, or for engineering contracts including blue
prints related thereto, or for consultant or supervisory
services shall be deemed not to be payments received as a
consideration for information concerning industrial,
commercial or scientific experience. Such payments would be
dealt with as commercial income in accordance with Article 7.
8.Payments received as a consideration for the right to
distribute software do not represent a royalty as long as they
do not include the right to reproduce this software. Such
payments would be dealt with as commercial income in
accordance with Article 7.
9.If the territory referred to in sub-paragraph 3 a) of Article
2 exempts royalties from tax or limits its taxation at source
on royalties to a rate lower than the rate provided for in
this Arrangement, pursuant to a convention, an agreement or a
protocol signed after 30th September 2009 with a member state
of the OECD, the same exemption or lower rate shall
automatically apply under this Arrangement, as if it had been
specified in this Arrangement, provided that the beneficial
owner of the royalties meets the same conditions for the
exemption or the reduced rate as those required in the above
mentioned convention, agreement or protocol.

ARTICLE 13
CAPITAL GAINS
1.a)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.
b)Gains from the alienation of shares or other rights in a
company, a trust or any other institution or entity the
assets or property of which consist for more than 50 per
cent of their value of, or derive more than 50 per cent of
their value, directly or indirectly through the
interposition of one or more other companies, trusts,
institutions or entities, from immovable property referred
to in Article 6 and situated in a territory or of rights
connected with such immovable property may be taxed in that
territory.
For the purposes of this provision, immovable property
pertaining to business carried on personally by such company
shall not be taken into account.
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 from the alienation of property forming part of the
business property of an enterprise and consisting of ships or
aircraft operated by that enterprise in international traffic
or movable property pertaining to the operation of such ships
or aircraft, shall be taxable only in the territory in which
the place of effective management of the enterprise is
situated.
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
may be taxed in the territory in which the place of effective
management of the enterprise is situated.

ARTICLE 15
DIRECTOR’S 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 or of a supervisory board of a company which is a
resident of the other territory may be taxed in that other
territory.

ARTICLE 16
ARTISTES AND ATHLETES
1.a)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 an athlete or a model, from his
personal activities as such exercised in the other
territory, may be taxed in that other territory.
b)Notwithstanding, the provisions of Articles 7, 12, 14 and
21, when an entertainer, an athlete or a model, being a
resident of a territory, receive income from a resident of
the other territory for performances that have a connection
with this professional standing, such income may be taxed in
that other territory.
2.Where income in respect of personal activities exercised by an
entertainer, an athlete or a model in his capacity as such
accrues not to the entertainer or athlete or model himself but
to another person, that income may, notwithstanding the
provisions of Articles 7, 12, 14 and 21, be taxed in the
territory from which it derives.
3.Notwithstanding the provisions of paragraph 1, income derived
by a resident of a territory as an entertainer or an athlete
or a model from his personal activities as such exercised in
the other territory shall be taxable only in the
first-mentioned territory if those activities in the other
territory are supported mainly by public funds of one or both
of the authorities administering a territory, or its political
subdivisions or local or territorial authorities, or of their
public law entities.
4.Notwithstanding the provisions of paragraph 2, where income in
respect of personal activities exercised by a resident of a
territory, who is an entertainer or an athlete or a model, in
his capacity as such in the other territory accrues not to the
entertainer or athlete or model himself but to another person,
whether a resident of a territory or not, that income,
notwithstanding the provisions of Articles 7 and 14, shall be
taxable only in the first-mentioned territory, where in
respect of such activities, that other person is supported
mainly by public funds of one or both of the authorities
administering a territory, or its political subdivisions or
local or territorial authorities or of their public law
entities.

ARTICLE 17
PENSIONS
1.Subject to the provisions of paragraph 2 of article 18,
pensions and other similar remuneration paid to a resident of
a territory in consideration of past employment shall be
taxable only in that territory.
2.Notwithstanding the provisions of paragraph 1, pensions paid
and other payments made under a public scheme which is part of
the social security system of a territory or its political
subdivision or local or territorial authority hereof may be
taxable in that territory.

ARTICLE 18
PUBLIC SERVICE
1.a)Salaries, wages and other similar remuneration, other than a
pension, paid by an authority administering a territory or a
political subdivision or a local or territorial authority
thereof, or by one of their public law entities of either to
an individual in respect of services rendered to that
administering authority or subdivision or local authority or
entity shall be taxable only in that territory.
b)However, such salaries, wages and other similar remuneration
shall be taxable only in the other territory if the services
are rendered in that territory and the individual is a
resident of that territory who is a citizen or national of
that territory without being also a citizen or national of
the first-mentioned territory.
2.a)Any pension and other similar remuneration paid by, or out
of funds created by, an authority administering a territory
or a political subdivision or a local or territorial
authority thereof or by one of their public law entities of
either to an individual in respect of services rendered to
that administering authority or subdivision or local or
territorial authority or public law entity shall be taxable
only in that territory.
b)However, such pension and other similar remuneration shall
be taxable only in the other territory if the individual is
a resident of and a citizen or national of that territory
without being also a citizen or national of the
first-mentioned territory.
3.The provisions of Articles 14, 15, 16 and 17 shall apply to
salaries, wages pensions, and other similar remuneration in
respect of services rendered in connection with an industrial
or commercial activity carried on by an authority
administering a territory or a political subdivision or a
local or territorial authority thereof, or by one of their
public law entities.

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
PROFESSORS AND RESEARCHERS
1.Subject to the provisions of Article 18, and notwithstanding
the provisions of Article 14, a resident of a territory who,
at the invitation of a university, college, or other
educational institution, situated in the other territory and
recognized by the authority administering that other
territory, is present in the other territory solely for the
purpose of teaching, or engaging in research, or both, at the
educational institution, shall be exempt from tax in the other
territory for his remuneration for such teaching or research.
This provision shall apply for a period not exceeding 24
months from the date of the first arrival of the teacher or
researcher in the other territory for the purpose of teaching
or engaging in research.
2.The provisions of paragraph 1 shall not apply to any
remuneration for research if such research is undertaken not
in the public interest but for the private benefit of a
specific person or persons.

ARTICLE 21
OTHER INCOME
1.Items of income beneficially owned by a resident of a
territory, wherever arising, not dealt with in the foregoing
Articles of this Arrangement 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 beneficial owner 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.Where, by reason of a special relationship between the person
referred to in paragraph 1 and some other person, or between
both of them and some third person, the amount of the income
referred to in paragraph 1 exceeds the amount (if any) which
would have been agreed upon between them in the absence of
such a relationship, the provisions of this Article shall
apply only to the last mentioned amount. In such a case, the
excess part of the income shall remain taxable according to
the laws of each territory, due regard being had to the other
provisions of this Arrangement.

ARTICLE 22
ELIMINATION OF DOUBLE TAXATION
1.In the case of the territory referred to in paragraph 3 a) of
Article 2 of this Arrangement, double taxation shall be
avoided as follows:
Where a resident of that territory derives income from the
other territory, the amount of tax on that income paid in 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 the provisions of this
Arrangement, shall be credited against the tax levied in the
first mentioned territory imposed on that resident. The amount
of credit, however, shall not exceed the amount of the tax in
the first mentioned territory on that income computed in
accordance with its taxation laws and regulations.
2.In the case of the territory referred to in paragraph 3 b) of
Article 2, double taxation shall be avoided as follows:
a)notwithstanding any other provision of this Arrangement,
income which may be taxed or shall be taxable only in the
territory in which the taxation laws administered by the
Taiwan Taxation Agency are applied in accordance with the
provisions of the Arrangement shall be taken into account
for the computation of the tax levied in the first mentioned
territory where such income is not exempted from corporation
tax according to the domestic law of the first mentioned
territory.
In that case, the tax shall not be deductible from such
income, but the resident of the first mentioned territory
shall, subject to the conditions and limits provided for in
sub-paragraphs (i) and (ii), be entitled to a tax credit
against tax levied in the first mentioned territory. Such
tax credit shall be equal:
(i) in the case of income other than that mentioned in
sub-paragraph (ii), to the amount of tax levied in the
first mentioned territory and attributable to such income
provided that the resident of the first mentioned is
subject to tax in respect of such income;
(ii) in the case of income subject to the corporation tax
referred to in Article 7 and paragraph 2 of Article 13 and
in the case of income referred to in Article 10, paragraph
1 of Article 13, paragraph 3 of Article 14, Article 15,
paragraphs 1 and 2 of Article 16 and Article 20 to the
amount of tax paid in the territory in which the taxation
laws administered by the Taiwan Taxation Agency are
applied in accordance with the provisions of those
Articles ; however, such tax credit shall not exceed the
amount of tax levied in the first mentioned territory and
attributable to such income.
b)
(i) It is understood that the term "amount of tax levied in
the first mentioned territory and attributable to such
income" as used in sub-paragraph a) means:
- where the tax on such income is computed by applying a
proportional rate, the amount of the net income
concerned multiplied by the rate which actually applies
to that income;
- where the tax on such income is computed by applying a
progressive scale, the amount of the net income
concerned multiplied by the rate resulting from the
ratio of the tax actually payable on the total net
income taxable in accordance with the laws of the first
mentioned territory to the amount of that total net
income.
(ii) It is understood that the term "amount of tax paid in
the territory in which the taxation laws administered by
the Taiwan Taxation Agency are applied" as used in
sub-paragraph a) means the amount of tax effectively and
definitively borne in respect of the items of income
concerned, in accordance with the provisions of the
Arrangement, by a resident of the first mentioned
territory who is taxed on those items of income according
to the laws of the first mentioned territory.

ARTICLE 23
NON-DISCRIMINATION
1.Individuals who are citizens or 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 citizens or 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
favorably 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.

ARTICLE 24
MUTUAL AGREEMENT PROCEDURE
1.Where a person considers that the actions of one or both of
the territories result or will result for him in taxation not
in accordance with the provisions of this Arrangement, he may,
irrespective of the remedies provided by the domestic laws 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 23, to that of the
territory of which he is a national. The case must be
presented within 3 years from the first notification of the
action resulting in taxation not in accordance with the
provisions of the Arrangement.
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 the Arrangement. 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
Arrangement. They may also consult together for the
elimination of double taxation in cases not provided for in
the Arrangement.
4.The competent authorities of the territories may communicate
with each other directly, including through a joint commission
consisting of themselves or their representatives, for the
purpose of reaching an agreement in the sense of the preceding
paragraphs.

ARTICLE 25
EXCHANGE OF INFORMATION
1.The competent authorities of the territories shall exchange
such information as is foreseeably relevant for carrying out
the provisions of this Arrangement or to the administration or
enforcement of the domestic laws concerning taxes of every
kind and description imposed on behalf of the territories, or
of their subdivisions or local authorities, insofar as the
taxation thereunder is not contrary to the Arrangement. The
exchange of information is not restricted by Article 1and 2.
2.Any information received under paragraph 1 by a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws of that territory and shall
be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
the determination of appeals in relation to the taxes referred
to in paragraph 1, or the oversight of the above. Such persons
or authorities shall use the information only for such
purposes. They may disclose the information in public court
proceedings or in judicial decisions.
3.In no case shall the provisions of paragraph 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 or 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
fiduciary capacity or because it relates to ownership
interests in a person.

ARTICLE 26
ASSISTANCE IN THE COLLECTION OF TAXES
1.Each of the territories shall endeavor to collect, as if it
were its own tax, any tax referred to in Article 2, which has
been imposed by the other territory and the collection of
which is necessary to ensure that any exemption or reduction
of tax granted under this Arrangement by that other territory
shall not be enjoyed by persons not entitled to such benefits.
2.In no case shall the provisions of this Article be construed
so as to impose on a territory the obligation:
a)to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
territory;
b)to carry out measures which would be contrary to public
policy (ordre public);
c)to provide assistance if the other territory has not pursued
all reasonable measures of collection or conservancy, as the
case may be, available under its laws or administrative
practice;
d)to provide assistance in those cases where the
administrative burden for that territory is clearly
disproportionate to the benefits to be derived by the other
territory.

ARTICLE 27
LIMITATION OF BENEFITS
1.Notwithstanding the provisions of any other Article of the
Arrangement, a resident of a territory shall not receive the
benefit of any reduction in or exemption from tax provided for
in the Arrangement 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 Arrangement.
For the purpose of this paragraph, a person shall be connected
to another person if one possesses at least 50 percent of the
beneficial interest in the other, or another person possesses,
directly or indirectly, at least 50 percent of the beneficial
interest in each person. In any case, a person shall be
considered to be connected to another person if, based on all
relevant facts and circumstances, one has control of the other
or both are under the control of the same person or persons.
2.Notwithstanding the provisions of any other Article of the
Arrangement, the benefit of the Arrangement can be denied on
an element of income where:
a)the recipient is not the beneficial owner of such income, and
b)the operation allows the beneficial owner to support a tax
burden on the element of income lower than the one he would
have supported if he had directly perceived such element of
income.
3.A resident of a territory that is not entitled to the benefits
of the Arrangement under the provisions of the preceding
paragraph of this Article shall, nevertheless, be granted the
benefits of the Arrangement if the competent authority of the
other territory determines, upon such person's request:
a)that the conduct of its operations did not have as one of
its principal purposes the obtaining of benefits under the
Arrangement; or
b)that it would not be appropriate, having regard to the
purpose of this Article, to deny the benefits of the
Arrangement to such person.
The competent authority of the other territory shall consult
with the competent authority of the first-mentioned territory
before denying the benefits of the Arrangement under this
paragraph.

ARTICLE 28
IMPLEMENTATION
1.The Arrangement shall be implemented the 1st January of the
year following the completion of the procedures required by
the laws of both territories.
2.The provisions of this Arrangement shall have effect:
a)in respect of taxes on income withheld at source, for
amounts taxable in or after the calendar year in which the
Arrangement is implemented;
b)in respect of taxes on income which are not withheld at
source, for income relating, as the case may be, to the
calendar year or accounting period beginning in or after the
calendar year in which the Arrangement is implemented;
c)in respect of the other taxes, for taxation the taxable
event of which occurs in or after the calendar year in which
the Arrangement is implemented.

ARTICLE 29
TERMINATION
1.The Arrangement shall be applicable indefinitely as far it is
implemented in each territory.
2.The competent authorities of the territories may communicate
with each other for the purpose of the termination of this
Arrangement. In that event, the information of termination to
the other party on or before 30th June in any calendar year
shall be given.
3.The Arrangement shall cease to be effective:
a)in respect of taxes on income withheld at source, for
amounts taxable after the calendar year in which the notice
of termination is given ;
b)in respect of taxes on income which are not withheld at
source, for income relating, as the case may be, to any
calendar year or accounting period beginning after the
calendar year in which the notice of termination is given ;
c)in respect of the other taxes, for taxation the taxable
event of which will occur after the calendar year in which
the notice of termination is given.

ARTICLE 30
MISCELLANEOUS RULES
1.In respect of Articles 10 and 11, an investment company or
fund, which is situated in a territory where it is not subject
to a tax mentioned in sub-paragraphs a) or b) of paragraph 3
of Article 2, and receives dividends or interest arising in
the other territory can ask for the aggregate amount of the
tax reductions or exemptions provided by the Arrangement in
the proportion of such income which corresponds to the rights
in the company or fund held by residents of the
first-mentioned territory and which is taxable in the hands of
those residents.
2.Paragraph 2 of Article 4 does not aim at denying the benefits
of the Arrangement to individuals who reside in the territory
referred to in paragraph 3-a) of Article 2 for 183 days or
more in a taxable year or who are ordinary residing in this
territory where they maintain a domicile.


NOTE
In case of any discrepancy between the English version and the
Chinese and French texts of this Arrangement, the Chinese and
French texts shall govern.