Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 32

Where an enterprise of the other Contracting State has a permanent establishment situated within the territory of the ROC, and yet that permanent establishment does not conform to the stipulations of a fixed place of business or a business agent set forth in Article 10 of the Income Tax Act, such enterprise of the other Contracting State shall pay its profit-seeking enterprise income tax in accordance with the following provisions:1. In the case the income of that enterprise so derived is subject to withholding tax under Article 88 of the Income Tax Act, the tax withholder shall withhold the tax payable at the time of payment according to the prescribed tax rates and withholding procedures. That enterprise of the other Contracting State may appoint an individual residing in the territory of the ROC or a profit-seeking enterprise having a fixed place of business within the territory of the ROC as its agent in charge of filing a tax return and making tax payment. Such agent may apply to the tax collection authority where the payer of such income is located for the deduction of relevant costs and expenses for the enterprise while filing the tax return. In such case, the amount of the tax withheld at the time of payment shall be deducted from the amount of income tax payable in accordance with the stipulations of the Income Tax Act.2. In the case the income of that enterprise so derived is not subject to withholding tax under Article 88 of the Income Tax Act, that enterprise of the other Contracting State may appoint an individual residing in the territory of the ROC or a profit-seeking enterprise having a fixed place of business within the territory of the ROC as its agent in charge of filing a tax return and making tax payment. Such agent may apply to the tax collection authority where the agent is located for the deduction of relevant costs and expenses while filing the tax return.3. The person who applies for the deduction of relevant costs and expenses referred to in the preceding two paragraphs shall prepare relevant accounting books and records, reports certified by a certified public accountant, and transfer pricing documentation, and make them available for the audit of the tax collection authority.