Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 8

Pursuant to the provisions in association with the term permanent establishment under a DTA, where an enterprise of the other Contracting State carries on a building site, construction, installation, or assembly project in the territory of the ROC for a period of time exceeding a certain duration of time, and based on which the enterprise constitutes or is deemed to have a permanent establishment in the territory of the ROC, the duration of time shall be determined by the calculation of the total period of time from the date on which the contractor begins his work on building, construction, installation, or assembly, including any preparatory work, until the work is completed or the project is permanently abandoned. Seasonal or other temporary interruptions shall be included in determining the duration of time. If an enterprise which has undertaken the performance of a comprehensive project subcontracts parts of such a project to other enterprises, the period spent by a subcontractor working on such a project shall be included in determining the duration of time.The term “building site, construction, installation, or assembly project” mentioned in the preceding paragraph includes the work of building, renovation, excavation, dredging, and laying of pipe-lines for a building, road, bridge, canal, etc. project.