Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 14

Pursuant to the provisions in association with the term royalties under a DTA, where it illustrates that “the term royalties means payments received as a consideration for the use of, or the right to use any copyright of relevant work,” it shall, in the case of the works of computer programs contained within a computer software, refer to payments for the exploitation or reproduction of, or the right to exploit or reproduce a set of instructions contained within that computer software, and these instructions were composed as a set in a way for, directly or indirectly, enabling a computer to produce a certain result. However, in the case that a payment is made for the use, operation, or reproduction of a computer software for one’s own purposes so as to enjoy the output from that computer software, to be entertained, or to archive backup, such payment is not royalties as denoted under a DTA.Pursuant to the provisions in association with the term royalties under a DTA, where it illustrates that “the term royalties means payments received as a consideration for information concerning industrial, commercial, or scientific experiences,” the basis for determination thereof shall be the fulfillment of each of the following subparagraphs:1. The information supplied already exists, is maintained in ways unrevealed to the public, and needs to be kept confidential; and2. For the supply of the information, there would be hardly any additional activities which need to be done by the supplier, and there is no guarantee as to any benefit that might be brought about by the use of the supplied information.