Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 23

Where an enterprise of the other Contracting State derives business profits which are subject to income tax according to the domestic laws, and is entitled to a reduction of or an exemption from such a tax in accordance with the provisions in association with the term business profits under a DTA, that enterprise shall provide a Certificate of Residence issued by the tax authority of the other Contracting State, relevant documents which prove the enterprise has no permanent establishment within the territory of the ROC or does not carry on its business through a permanent establishment within the territory of the ROC, and other relevant documents providing information of the income, and apply to the tax collection authority where the payer of such income is located for approval. Where the income is subject to withholding tax under Article 88 of the Income Tax Act, the tax collection authority shall, when issuing the approval, simultaneously notify the tax withholder of the reduction of or exemption from the withholding tax.When, in accordance with the stipulations of the Income Tax Act, the enterprise referred to in the preceding paragraph is required to file the annual income tax return or file a tax return and make tax payment, such enterprise may submit the documents specified in the preceding paragraph while filing the annual income tax return or filing a tax return and making tax payment to concurrently apply for the application of a DTA. The tax collection authority shall determine the amount of income which is entitled to the reduction of or exemption from such tax.