Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 10

Pursuant to the provisions in association with the term permanent establishment under a DTA, where a person who is acting on behalf of an enterprise and has, and habitually exercises, in the territory of the ROC an authority to conclude contracts in the name of the enterprise, it shall refer to any person, who may be an individual or individuals, company or companies, or any other body of persons, is acting on behalf of an enterprise and has, and habitually exercises, in the territory of the ROC, an authority to conclude contracts in the name of the enterprise, sign documents in a way binding on the enterprise, or negotiate all elements and details of a contract. However, the aforementioned person does not include an agent conducting activities for the enterprise solely of a preparatory or auxiliary character or an independent agent.Pursuant to the provisions in association with the term permanent establishment under a DTA, the term “independent agent” refers to an agent acting in the ordinary course of the business when acting on behalf of an enterprise of the other Contracting State.