Regulations Governing Application of Agreements for the Avoidance of Double Taxation with Respect to Taxes on Income Article 9

Pursuant to the provisions in association with the term permanent establishment under a DTA, where an enterprise of the other Contracting State carries on management or supervisory activities in the territory of the ROC in connection with a building site, construction, installation, or assembly project for a period of time exceeding a certain duration of time, or furnishes services in the territory of the ROC where activities of that nature continue through employees or other personnel or persons engaged by the enterprise (including individuals and body corporate) for such purpose for a period or periods of time aggregated exceeding a certain duration of time, and based on which the enterprise constitutes or is deemed to have a permanent establishment in the ROC, the duration of time shall be determined by the computation of the total of the aggregated days of presence of employees or other personnel or persons engaged by the enterprise to furnish services within the territory of the ROC. However, in the case that an investigator appointed by the tax collection authority concerned or the Taxation Administration of the Ministry of Finance finds that the enterprise has also engaged in activities outside the territory of the ROC and such activities have a close connection to the services furnished within the territory of the ROC (including the preparatory work), the total number of days spent in such activities shall be included in the calculation of the aforementioned duration of time.Pursuant to the provisions in association with the term independent personal services under a DTA, where a resident of the other Contracting State for the purpose of performing professional services or other activities of an independent character stays for a period or periods aggregated exceeding a certain duration of time within the territory of the ROC, and based on which that resident of the other Contracting State is subject to income tax, the computation of the duration of time stated in the preceding paragraph shall be accorded mutatis mutandis to the determination of the duration of stay of this case.The computation of the duration of time or stay referred to in the preceding two paragraphs shall be determined by the aggregation of the days commencing from the next day of the arrival and ending on the day of departure, of the relevant personnel, and include weekends, national holidays, annual leave, personal leave, sick leave, or bereavement leave, the departure day and temporary cessation of work due to strikes, training, etc. If the services are provided by two or more members of personnel and there is an overlap in the periods of their stay in the territory of the ROC, the overlapping period shall not be counted twice for the computation of the duration of time.Pursuant to the provisions in association with the term permanent establishment or independent personal services under a DTA, where the calculation of the duration of time mentioned in Paragraph 1 or the duration of stay mentioned in Paragraph 2 is formulated to be measured within any twelve-month period commencing or ending in the fiscal, income, taxable, or calendar year (hereinafter referred to as the “relevant year”) concerned, the said “any twelve-month period commencing or ending in the relevant year concerned” shall refer to any consecutive twelve months within the period from the day that is counting backward from the first day of the relevant year until the completion of a complementary twelve-month period, to the day that is counting forwards from the last day of the relevant year until the completion of a complementary twelve-month period.Pursuant to the provisions in association with the term permanent establishment under a DTA, where an enterprise of the other Contracting State furnishes services in the territory of the ROC through employees or other personnel or persons engaged by the enterprise (including individuals and body corporate) for such purpose, and the days of presence of employees or other personnel or persons engaged by the enterprise for the same or a connected project are required to be aggregated for the calculation of these persons’ duration of stay, the term “the same project” shall refer to the services provided for the same project from the perspective of that enterprise of the other Contracting State; whereas, the term “a connected project” shall refer to where the services are provided in the context of separate projects carried on by that enterprise of the other Contracting State but whose projects have a commercial coherence. To determine whether projects have a commercial coherence, the following factors shall be given an overall consideration:1. The projects are covered by a single master contract. In the case that the projects are covered by different contracts, these different contracts were concluded with the same person or with related persons and the conclusion of the additional contracts would reasonably have been expected when concluding the first contract.2. The nature of the work involved under the different projects is the same.3. The same individuals are performing the services under the different projects.4. Other circumstances where different projects can be adequately considered as having commercial coherence.