The DTAs mentioned in the Guidelines refer to those signed and effective in accordance with Article 5 of the Tax Collection Law, including comprehensive taxation agreements and reciprocal exemption agreements on income derived from the operation of shipping and air transport.

The residency status of an individual residing within the territory of the Republic of China (the “ROC”) shall be determined in accordance with the provisions under Paragraph 2, Article 7 of the Income Tax Law. If an individual is regarded as a resident by virtue of the tax laws of both Contracting States, his residency status shall be determined according to the criteria and priorities provided under Article 4 of the DTAs.

The residency status of an individual residing within the territory of the Republic of China (the “ROC”) shall be determined in accordance with the provisions under Paragraph 2, Article 7 of the Income Tax Law. If an individual is regarded as a resident by virtue of the tax laws of both Contracting States, his residency status shall be determined according to the criteria and priorities provided under Article 4 of the DTAs.

The residency status of a company or any other body of persons residing within the territory of the ROC shall be referred to as one who is subject to income tax on its worldwide income, as provided under Paragraph 2, Article 3 of the Income Tax Law. If a company or any other body of persons is regarded as a resident by virtue of the tax laws of both Contracting States, its residency status shall be determined according to the criteria and priorities provided under Article 4 of the DTAs.

The term “permanent home” means a place of residence arranged and retained by an individual, continuously available to him at all times.

The term “an individual’s personal and economic relations are closer (or centre of vital interests)” shall be determined by his family and social relations, his occupation, his political, cultural, or other activities, his place of business, and the place from which he administers his property, etc.

The term “habitual abode” shall be determined by comparing the length of time and frequency of the individual’s stay in the Contracting States.

The term “national” means any individual possessing the nationality of the ROC in accordance with the Nationality Law.

The term “place of effective management” shall be determined by considering factors such as the location of key managerial personnel, and the place where they exercise management and control of a company or any other body of persons.

Where the determination of the residency status of a person within the territory of the ROC has to be resolved by mutual agreement procedures, according to the DTAs, the tax collection authority-in-charge shall report the case along with the relevant facts to the Department of Taxation of the Ministry of Finance. The Department of Taxation must resolve the case by mutual agreement with the competent authority of the other Contracting State.

A resident of the ROC may request the tax collection authority-in-charge to issue a ROC Resident Certificate for the purpose of applying to the other Contracting State for tax regulations applicable under the DTAs. The resident making such a request shall submit a completed “Application Form for Issuing the ROC Resident Certificate” (in standard format), along with relevant documents, to the tax collection authority-in-charge.

The tax collection authority-in-charge shall issue a ROC Resident Certificate after reviewing relevant information, and verifying the residency status of the applicant, in accordance with the relevant DTAs.

After issuing the ROC Resident Certificate, the tax collection authority-in-charge shall keep a file on information gathered from the applicant, containing income derived from the other Contracting State. At the end of each year, the file shall be sent to the Data Processing Center of the Ministry of Finance to be further assorted and utilized.

A resident of the other Contracting State may, for the purpose of claiming a foreign tax credit, apply to the tax collection authority-in-charge for issuance of an Income Tax Statement.

An individual residing within the territory of the other Contracting State, whose spouse is an individual residing within the territory of the ROC, has derived dividends, interests, or royalties from ROC sources, may apply for the limited tax rate, as stipulated in the DTAs, to be withheld in accordance with Article 10 of the Guidelines. In such a case, the requirement of joint filing with his spouse, in accordance with Article 15 of the Income Tax Law, shall not apply.

A resident of the other Contracting State who has derived dividends, interests, royalties, or technical fees from ROC sources, with the tax rates of the aforementioned incomes, under the DTAs, being lower than the withholding tax rates, under the Standard of Withholding Tax Rates for Various Incomes, may apply for the limited tax rate. The resident shall submit the certificate of residence issued by the tax authority of the other Contacting State, and documents identifying him as the beneficial owner of income handed over to the withholding agent for handling withholding matters. The withholding agent shall state the applicable DTA provisions, present the aforementioned documents provided by the said income recipient, as well as copies of relevant income calculation documents when filing the withholding tax statement to the tax collection authority-in-charge.

The required relevant income calculation documents aforesaid include：

Where an international transport enterprise of the other Contracting State is entitled to a reduced rate or exemption in accordance with the DTAs, and has a permanent establishment within the territory of the ROC, such enterprise shall file an income tax return in accordance with the Income Tax Law. The tax collection authority-in-charge shall determine exempted income of such enterprise.

Where a resident of the other Contracting State does not have a permanent establishment or a fixed base within the territory of the ROC is entitled to exemption in accordance with the DTAs, the income recipient shall submit the Resident Certificate issued by the tax authority of the other Contracting State, along with relevant documents (such as transaction contracts), and shall state the applicable DTA provisions, to the tax collection authority-in-charge where the withholding agent or the payer of such income is located for approval. If the income so derived had been subject to the withholding tax under Article 88 of the Income Tax Law, the tax collection authority-in-charge shall, when issuing the approval, notify the withholding agent of the exemption from the withholding tax.

Where a resident of the other Contracting State has received remuneration for services rendered within the territory of the ROC, and is eligible for individual income tax exemption for the DTAs purposes, the resident shall submit the Residence Certificate issued by the tax authority of the other Contracting State, along with passport, and other relevant documents to the tax collection authority-in-charge. The resident shall also provide descriptions regarding the remuneration source, the total amount paid, and whether the remuneration is borne by a permanent establishment or a fixed place of the employer within the territory of the ROC.

A withholding agent or an income recipient who did not comply with the provisions under Section 10, 11 and 12 of the Guidelines, shall be taxed in accordance with the relevant provisions of the Income Tax Law.

For a case that has already been taxed in accordance with the Standard of Withholding Tax Rates for Various Incomes, the income recipient may appoint the withholding agent to, within five years from the tax payment date, submit the relevant documents stated under Section 10, 11 or 12 of the Guidelines, along with the original copy of the letter of authorization, payment receipt, original copy of tax payment statement, pre-adjusted and adjusted withholding tax statement and various income filing statement to the tax collection authority-in-charge which has handled the withholding tax case for a refund of tax overpaid. For a case that has not been taxed in accordance with the Standard of Withholding Tax Rates for Various Incomes, the income receipt may, within 5 years from the tax payment date, submit the relevant documents stated under Section 11 or 12 of the Guidelines, along with the tax return and original copy of tax payment statement, to the tax collection authority-in-charge which has handled the tax filing case for a refund of tax overpaid.

A company or any other body of persons residing within the territory of the ROC, receiving income from the other Contracting State and paying tax in accordance with the limited tax rate stipulated in the DTAs, may submit a claim for a foreign tax credit. The amount of the said credit shall be limited to the amount of tax payable as calculated at the limited tax rate provided in the DTAs, and shall be subject to the relevant rules provided under Article 3 of the Income Tax Law. If the income is exempt in the other Contracting State, or if the DTAs sets a limited tax rate on the income, no foreign tax credit shall be allowed for the overpaid amount of foreign tax resulting from not applying for the DTAs.

An individual residing within the territory of the ROC, applying for the elimination of double taxation, shall submit the Income Tax Statement regarding the category and amount of income, the applicable tax rate and tax payable issued by the tax authority of the other Contracting State to the tax collection authority-in-charge in order to compute the tax credit. The tax credit limit and the calculation method shall be subject to the same rules as referred to in the preceding paragraph.

A resident of the ROC who is applying for a tax sparing credit, when filing his income tax return, shall submit evidence regarding the law offering tax exemption, the amount of income, exempted amount of tax, and other relevant information issued by the tax authority of the other Contracting State to the tax collection authority-in-charge.

The amount of the tax sparing credit referred to in the preceding paragraph shall not include the foreign tax credit claimed in accordance with the DTAs between the other Contracting State and a third State.

Where a resident of the ROC considers that the action of one or both of the Contracting States results in taxation not in accordance with the DTAs, he may present a request to the tax collection authority-in-charge to resolve the case by mutual agreement, in accordance with the mutual agreement procedure of the DTAs. The tax collection authority-in-charge shall investigate whether the facts of the objection appear to be justified, whether actions should have been taken but were not, and whether such a matter can be resolved unilaterally. If necessary, a written notice will be made to the Department of Taxation of the Ministry of Finance to resolve the case by mutual agreement with the other Contracting State.

The tax collection authority-in-charge shall keep files on the relevant information of all cases approved in accordance with Sections 10 to 13 of the Guidelines. At the end of each year, it shall send the same files to the Data Processing Center of the Ministry of Finance to be further assorted and utilized.

In accordance with the provisions regarding the exchange of information under the DTAs, the tax collection authority-in-charge may, for the purpose of tax audits, send a request to the Department of Taxation of the Ministry of Finance, to contact the other Contracting States for verification or provision of relevant information. Where the tax authority of the other Contracting State sends a request to the Department of Taxation of the Ministry of Finance for verification or provision of relevant information, the case shall be forwarded to the tax collection authority-in-charge for necessary check and collection of information. Afterwards, it shall be sent back to the Department of Taxation of the Ministry of Finance for review and reply.