Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 25

Where a resident of the other Contracting State derives dividends, interest, royalties, or technical service fees from ROC sources and has no permanent establishment or fixed base located in the territory of the ROC, or has a permanent establishment or fixed base located in the territory of the ROC but the relevant shares, debt-claims, or rights in respect of which the aforesaid income are paid are not effectively connected with such permanent establishment or fixed base, the tax withholder of such income may withhold the tax according to the limited tax rate specified in the relevant provisions of the DTA. In such a case, the dividends, interest, royalties, or technical service fees shall not be included in the business profits of the permanent establishment located in the territory of the ROC or in the income from professional services of the fixed base located in the territory of the ROC.Where a resident of the other Contracting State is entitled to apply the limited tax rate according to the preceding paragraph, that resident shall, in accordance with the provisions of the applicable DTA, provide a Certificate of Residence issued by the tax authority of the other Contracting State as well as documents identifying that resident as the beneficial owner of such income, to the tax withholder for the handling of withholding matters. The tax withholder, while filing the withholding tax statement with the tax collection authority, shall specify the provisions of the applicable DTA for which the case applies and present the aforementioned documents provided by the said income recipient as well as copies of relevant documents pertaining to the calculation of income.Where a resident of the other Contracting State derives interest and is entitled to the exemption from tax in accordance with the provisions in association with the term interest under a DTA, that resident may provide a Certificate of Residence issued by the tax authority of the other Contracting State, relevant documents pertaining to the calculation of income, and relevant documents corresponding to the relevant provisions of the DTA, 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.The required documents pertaining to the calculation of income mentioned in the preceding two paragraphs shall include: with respect to interest, loan contracts or deposit records, interest statements or notices, etc.; with respect to dividends, share certificates or beneficiary receipts, dividends distribution calculation statements or notices, etc.; with respect to royalties or technical service fees, licensing or technical service contracts (including a copy of the Chinese text), calculation statements of royalties or technical service fees due, etc.Except in the case where the relevant provisions of the DTA or the stipulations of the Ministry of Finance provide that a fund, trust, or trustee shall be deemed to be the beneficial owner of dividends or interest, a foreign institutional investor of the other Contracting State pursuant to the Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals which invests, in the territory of the ROC, the securities with the status of a fund, or not with the status of a fund but by the means of concluding contracts of order trading, discretionary account trading, or holding a trust relationship with residents of the other Contracting State and derives dividends or interest from ROC sources shall prepare the following documents and provide them to the tax withholder for the handling of withholding matters in accordance with the provision of Paragraph 1:1. A list of beneficiaries at any time point between the date of December 31 of the preceding year in which the income is incurred and the date on which the income is incurred. The content of the list of beneficiaries shall include the names, personal identification numbers or tax identification number, and addresses of beneficiaries, number of units which are held by each beneficiary, or the proportion of the beneficial rights to which each of the beneficiaries is entitled.2. A Certificate of Residence issued by the tax authority of the other Contracting State which demonstrates that each beneficiary named on the list of beneficiaries is a resident of the other Contracting State. Where the aforementioned Certificate of Residence listing each of the beneficiaries is not available, a Certificate of Residence issued by the tax authority of the other Contracting State which demonstrates the proportion of the units of the fund or trust which are held by the residents of the other Contracting State or the proportion of the beneficial rights of the fund or trust to which the residents of the other Contracting State are entitled shall be provided instead. In the case where the other Contracting State only issues a Certificate of Residence of the foreign institutional investor without the aforementioned information, the following documents shall also be provided:(1) A statement issued by the foreign institutional investor: the content of the statement shall include the proportion of the units of the fund or trust which are held by the residents of the other Contracting State or the proportion of the beneficial rights of the fund or trust to which the residents of the other Contracting State are entitled. Such statement shall be attested by an embassy or consulate of the ROC located in the other Contracting State, or attested by a court or a government authority or verified by a notary of the other Contracting State; and(2) Prospectuses for public offerings or prospectuses of investing schemes.