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1 AGREEMENT BETWEEN THE TAIPEI REPRESENTATIVE OFFICE IN DENMARKAND THE DANISH TRADE ORGANISATIONS’ TAIPEI OFFICE FOR THE AVOI-DANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASIONWITH RESPECT TO TAXES ON INCOME Desiring to conclude an Agreement for the avoidance of doubletaxation and the prevention of fiscal evasion with respect totaxes on income for the purpose of maintaining and promoting bi-lateral economic and commercial relations, Have agreed as follows: Article 1 Persons Covered This Agreement shall apply to persons who are residents of oneor both of the territories. Article 2 Taxes Covered 1.The existing taxes to which this Agreement shall apply are:a) In the territory where the taxation laws administered by theDanish Ministry of Taxation (Skatteministeriet) are applied:(i) the income tax to the State (indkomstskatten til staten); (ii) the income tax to the municipalities (den kommunale indkomstskat); (iii) the income tax to the county municipalities (den amtskommunale indkomstskat). b) In the territory where the taxation laws administered by theTaxation Agency, Ministry of Finance in Taipei are applied:(i) the profit-seeking enterprise income tax; and (ii) the individual consolidated income tax; including the surcharges levied thereon. 2.The Agreement shall apply also to any identical or substantia-lly similar taxes that are imposed after the date of signatureof the Agreement in addition to, or in place of, the existingtaxes.The competent authorities of the territories shall no-tify each other of any significant changes which have been ma-de in the taxation laws of the respective territories. Article 3 General Definitions 1.For the purposes of this Agreement, unless the context otherw-ise requires: a) the term “territory” means the territory referred to insubparagraphs 1 a) or 1 b) of Article 2, as the context req-uires, and “the other territory” and “territories” shallbe construed accordingly; b) the term “person” includes an individual, a company andany other body of persons; c) the term “company” means any body corporate or any entitythat is -treated as a body corporate for tax purposes; d) the term “enterprise” applies to the carrying on of anybusiness; e) the terms “enterprise of a territory” and “enterprise ofthe other territory” mean respectively an enterprise carri-ed on by a resident of a territory and an enterprise carriedon by a resident of the other territory; f) the term “international traffic” means any transport by aship or aircraftoperated by an enterprise of a territory,except when the ship or aircraft is operated solely betweenplaces in the other territory; g) the term “competent authority” means: (i) in the territory where the taxation laws administered bythe Danish Ministry of Taxation are applied: The Central Customs and Tax Administration (Told- og Skattestyrelsen);(ii) in the territory where the taxation laws administered bythe Taxation Agency, Ministry of Finance in Taipei are applied: Director-General of the Taxation Agency or his authorised representative; h) the term “business” includes the performance of professio-nal services and of other activities of an independent char-acter. 2.As regards the application of the Agreement at any time in aterritory, any term not defined therein shall, unless the con-text otherwise requires, have the meaning that it has at thattime under the law of that territory for the purposes of thetaxes to which the Agreement applies, any meaning under theapplicable tax laws of that territory prevailing over a meani-ng given to the term under other laws of that territory. Article 4 Resident 1.For the purposes of this Agreement, the term “resident of aterritory” means any person who, under the laws of that terr-itory, is liable to tax therein by reason of his domicile, re-sidence, place of incorporation, place of management or anyother criterion of a similar nature, and also includes the au-thority administering a territory and any subdivision or localauthority thereof. 2.A person is not a resident of a territory for the purposes ofthis Agreement if that person is liable to taxation in thatterritory in respect only of income from sources in that terr-itory, provided that this paragraph shall not apply to indivi-duals who are residents of the territory referred to in subpa-ragraph 1 b) of Article 2, as long as resident individuals aretaxed only in respect of income from sources in that territory. 3.Where by reason of the provisions of paragraph l an individualis a resident of both territories, then his status shall bedetermined as follows: a) he shall be deemed to be a resident only of the territory inwhich he has a permanent home available to him; if he has apermanent home available to him in both territories, he sha-ll be deemed to be a resident only of the territory with wh-ich his personal and economic relations are closer (centreof vital interests); b) if the territory in which he has his centre of vital intere-sts cannot be determined, or if he has not a permanent homeavailable to him in either territory, he shall be deemed tobe a resident only of the territory in which he has an habi-tual abode; c) if he has an habitual abode in both territories or in neith-er of them, he shall be deemed to be a resident only of theterritory in which he is a national under laws in force ofthat territory; d) if he is a national as referred to under subparagraph c) ab-ove in both territories or in neither of them, the competentauthorities of the territories shall settle the question bymutual agreement. 4.A legal person, a fund or other entity which is established ina territory under the laws in force in that territory with thepurpose of providing pensions or other similar benefits to in-dividuals, and which is generally tax exempt in that territory, shall be deemed to be a resident of that territory for thepurposes of this Agreement. 5.Where by reason of the provisions of paragraph l a person oth-er than an individual is a resident of both territories, thenit shall be deemed to be a resident only of the territory inwhich its place of effective management is situated. Article 5 Permanent Establishment 1.For the purposes of this Agreement, the term “permanent esta-blishment” means a fixed place of business through which thebusiness of an enterprise is wholly or partly carried on. 2.The term “permanent establishment” includes especially:a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, an oil or gas well, a quarry or any other place ofextraction of natural resources. 3.A building site or construction or installation project const-itutes a permanent establishment only if it lasts more thansix months. 4.An enterprise of a territory shall be deemed to have a perman-ent establishment in the other territory if: a) an installation or drilling rig or ship used for the explor-ation of natural resources lasts more than six months; b) it carries on supervisory activities for more than six mont-hs in connection with a building site or construction or in-stallation project which is being undertaken in the other territory; c) it furnishes services, including consultancy services, thro-ugh employees or other personnel or persons engaged by theenterprise for such purpose, but only where activities of that nature continue for the same or a connected project, for a period or periods aggregating more than six months wi-thin any twelve month period. 5.For the purposes of determining the duration of activities un-der paragraphs 3 and 4, the period during which activities arecarried on in a territory by an enterprise associated with an-other enterprise shall be aggregated with the period duringwhich activities are carried on by the enterprise with whichit is associated if the first-mentioned activities are connec-ted with the activities carried on in that territory by thelast-mentioned enterprise, provided that any period during wh-ich two or more associated enterprises are carrying on concur-rent activities is counted only once. An enterprise shall bedeemed to be associated with another enterprise if one is con-trolled directly or indirectly by the other, or if both arecontrolled directly or indirectly by a third person or persons. 6.Notwithstanding the preceding provisions of this Article, theterm “permanent establishment” shall be deemed not to inclu-de: a) the use of facilities solely for the purpose of storage, di-splay or delivery of goods or merchandise belonging to theenterprise; b) the maintenance of a stock of goods or merchandise belongingto the enterprise solely for the purpose of storage, displayor delivery; c) the maintenance of a stock of goods or merchandise belongingto the enterprise solely for the purpose of processing by another enterprise; d) the maintenance of a fixed place of business solely for thepurpose of purchasing goods or merchandise or of collectinginformation, for the enterprise; e) the maintenance of a fixed place of business solely for thepurpose of carrying on, for the enterprise, any other activ-ity of a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for anycombination of activities mentioned in subparagraphs a) to e) provided that the overall activity of the fixed place ofbusiness resulting from this combination is of a preparatoryor auxiliary character. 7.Notwithstanding the provisions of paragraphs l and 2, where aperson - other than an agent of an independent status to whomparagraph 8 applies - is acting on behalf of an enterprise andhas, and habitually exercises, in a territory an authority toconclude contracts in the name of the enterprise, that enterp-rise shall be deemed to have a permanent establishment in thatterritory in respect of any activities which that person unde-rtakes for the enterprise, unless the activities of such pers-on are limited to those mentioned in paragraph 6 which, if ex-ercised through a fixed place of business, would not make thisfixed place of business a permanent establishment under theprovisions of that paragraph. 8.An enterprise shall not be deemed to have a permanent establi-shment in a territory merely because it carries on business inthat territory through a broker, general commission agent orany other agent of an independent status, provided that suchpersons are acting in the ordinary course of their business.9.The fact that a company which is a resident of a territory co-ntrols or is controlled by a company which is a resident ofthe other territory, or which carries on business in that oth-er territory (whether through a permanent establishment or ot-herwise), shall not of itself constitute either company a per-manent establishment of the other. Article 6 Income from Immovable Property 1.Income derived by a resident of a territory from immovable pr-operty (including income from agriculture or forestry) situat-ed in the other territory may be taxed in that other territory. 2.The term “immovable property” shall have the meaning whichit has under the law of the territory in which the property inquestion is situated.The term shall in any case include pro-perty accessory to immovable property, livestock and equipmentused in agriculture and forestry, rights to which the provisi-ons of general law respecting landed property apply, usufructof immovable property and rights to variable or fixed paymentsas consideration for the working of, or the right to work, mi-neral deposits, sources and other natural resources; ships,boats and aircraft shall not be regarded as immovable property. 3.The provisions of paragraph l shall apply to income derivedfrom the direct use, letting, or use in any other form of imm-ovable property. 4.The provisions of paragraphs l and 3 shall also apply to theincome from immovable property of an enterprise. Article 7 Business Profits 1.The profits of an enterprise of a territory shall be taxableonly in that territory unless the enterprise carries on busin-ess in the other territory through a permanent establishmentsituated therein.If the enterprise carries on business asaforesaid, the profits of the enterprise may be taxed in theother territory but only so much of them as is attributable tothat permanent establishment. 2.Subject to the provisions of paragraph 3, where an enterpriseof a territory carries on business in the other territory thr-ough a permanent establishment situated therein, there shallin each territory be attributed to that permanent establishme-nt the profits which it might be expected to make if it were adistinct and separate enterprise engaged in the same or simil-ar activities under the same or similar conditions and dealingwholly independently with the enterprise of which it is a per-manent establishment. 3.In determining the profits of a permanent establishment, thereshall be allowed as deductions expenses which are incurred forthe purposes of the permanent establishment, including execut-ive and general administrative expenses so incurred, whetherin the territory in which the permanent establishment is situ-ated or elsewhere. 4.Insofar as it has been customary in a territory to determinethe profits to be attributed to a permanent establishment onthe basis of an apportionment of the total profits of the ent-erprise to its various parts, nothing in paragraph 2 shall pr-eclude that territory from determining the profits to be taxedby such an apportionment as may be customary; the method ofapportionment adopted shall, however, be such that the resultshall be in accordance with the principles contained in thisArticle. 5.No profits shall be attributed to a permanent establishment byreason of the mere purchase by that permanent establishment ofgoods or merchandise for the enterprise. 6.For the purposes of the preceding paragraphs, the profits tobe attributed to the permanent establishment shall be determi-ned by the same method year by year unless there is good andsufficient reason to the contrary. 7.Where profits include items of income which are dealt with se-parately in other Articles of this Agreement, then the provis-ions of those Articles shall not be affected by the provisionsof this Article. Article 8 Shipping and Air Transport 1.Profits derived by an enterprise of a territory from the oper-ation of ships or aircraft in international traffic shall betaxable only in that territory. 2.For the purposes of this Article, profits from the operationof ships or aircraft in international traffic include: a) profits from the rental on a full (time or voyage) basis ora bareboat basis of ships or aircraft; and b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transportof containers) used for the transport of goods or merchandi-se; where such rental or such use, maintenance or rental, as thecase may be, is incidental to the operation of ships or aircr-aft in international traffic. 3.The provisions of paragraphs 1 and 2 shall also apply to prof-its from the participation in a pool, a joint business or aninternational operating agency. 4.Where enterprises from different jurisdictions have agreed tooperate ships or aircraft in international traffic through abusiness consortium, the provisions of this Article shall app-ly only to such proportion of the profits as corresponds tothe participation held in that consortium by an enterprise ofa territory. Article 9 Associated Enterprises 1.Where a) an enterprise of a territory participates directly or indi-rectly in the management, control or capital of an enterpr-ise of the other territory, or b) the same persons participate directly or indirectly in themanagement, control or capital of an enterprise of a terri-tory and an enterprise of the other territory, and in eith-er case conditions are made or imposed between the two ent-erprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, byreason of those conditions, have not so accrued, may be in-cluded in the profits of that enterprise and taxed accordi-ngly. 2.Where a territory includes in the profits of an enterprise ofthat territory - and taxes accordingly - profits on which anenterprise of the other territory has been charged to tax inthat other territory and the profits so included are profitswhich would have accrued to the enterprise of the first-menti-oned territory if the conditions made between the two enterpr-ises had been those which would have been made between indepe-ndent enterprises, then that other territory shall make an ap-propriate adjustment to the amount of the tax charged thereinon those profits. In determining such adjustment, due regardshall be had to the other provisions of this Agreement and thecompetent authorities of the territories shall if necessaryconsult each other. Article 10 Dividends l.Dividends paid by a company which is a resident of a territoryto a resident of the other territory may be taxed in that oth-er territory. 2.However, such dividends may also be taxed in the territory ofwhich the company paying the dividends is a resident and acco-rding to the laws in force of that territory, but if the bene-ficial owner of the dividends is a resident of the other terr-itory the tax so charged shall not exceed 10 per cent of thegross amount of the dividends. The competent authorities of the territories shall by mutualagreement settle the mode of application of these limitations.This paragraph shall not affect the taxation of the company inrespect of the profits out of which the dividends are paid.3.The term “dividends” as used in this Article means incomefrom shares or other rights, not being debt-claims, participa-ting in profits, as well as income from other corporate rightswhich is subjected to the same taxation treatment as incomefrom shares by the laws of the territory of which the companymaking the distribution is a resident. 4.The provisions of paragraphs l and 2 shall not apply if thebeneficial owner of the dividends, being a resident of a terr-itory, carries on business in the other territory of which thecompany paying the dividends is a resident, through a permane-nt establishment situated therein, and the holding in respectof which the dividends are paid is effectively connected withsuch permanent establishment. In such case the provisions ofArticle 7 shall apply. 5.Where a company which is a resident of a territory derives pr-ofits or income from the other territory, that other territorymay not impose any tax on the dividends paid by the company,except insofar as such dividends are paid to a resident of th-at other territory or insofar as the holding in respect of wh-ich the dividends are paid is effectively connected with a pe-rmanent establishment situated in that other territory, norsubject the company's undistributed profits to a tax on thecompany's undistributed profits, even if the dividends paid orthe undistributed profits consist wholly or partly of profitsor income arising in such other territory. Article 11 Interest l.Interest arising in a territory and paid to a resident of theother territory may be taxed in that other territory. 2.However, such interest may also be taxed in the territory inwhich it arises and according to the laws in force of that te-rritory, but if the beneficial owner of the interest is a res-ident of the other territory, the tax so charged shall not ex-ceed 10 per cent of the gross amount of the interest. The competent authorities of the territories shall by mutualagreement settle the mode of application of these limitations.3.Notwithstanding the provisions of paragraph 2, tax shall notbe charged on the gross amount of the interest if the benefic-ial owner is a public institution (including a central bank)in a territory or any agency (including a financial instituti-on) owned or controlled by an authority administering a terri-tory. 4.The term “interest” as used in this Article means income fr-om debt-claims of every kind, whether or not secured by mortg-age and whether or not carrying a right to participate in thedebtor's profits, and in particular, income from public secur-ities and income from bonds or debentures, including premiumsand prizes attaching to such securities, bonds or debentures.Penalty charges for late payment shall not be regarded as int-erest for the purpose of this Article. 5.The provisions of paragraphs 1 and 2 shall not apply if thebeneficial owner of the interest, being a resident of a terri-tory, carries on business in the other territory in which theinterest arises, through a permanent establishment situatedtherein, and the debt-claim in respect of which the interestis paid is effectively connected with such permanent establis-hment.In such case the provisions of Article 7 shall apply.6.Interest shall be deemed to arise in a territory when the pay-er is a resident of that territory.Where, however, the pers-on paying the interest, whether he is a resident of a territo-ry or not, has in a territory a permanent establishment in co-nnection with which the indebtedness on which the interest ispaid was incurred, and such interest is borne by such permane-nt establishment, then such interest shall be deemed to arisein the territory in which the permanent establishment is situ-ated. 7.Where, by reason of a special relationship between the payerand the beneficial owner or between both of them and some oth-er person, the amount of the interest, having regard to thedebt-claim for which it is paid, exceeds the amount which wou-ld have been agreed upon by the payer and the beneficial ownerin the absence of such relationship, the provisions of thisArticle shall apply only to the last-mentioned amount.In su-ch case, the excess part of the payments shall remain taxableaccording to the laws of each territory, due regard being hadto the other provisions of this Agreement. Article 12 Royalties l.Royalties arising in a territory and paid to a resident ofthe other territory may be taxed in that other territory. 2.However, such royalties may also be taxed in the territory inwhich they arise and according to the laws in force of thatterritory, but if the beneficial owner of the royalties is aresident of the other territory, the tax so charged shall notexceed 10 per cent of the gross amount of the royalties. The competent authorities of the territories shall by mutualagreement settle the mode of application of these limitations.3.The term “royalties” as used in this Article means paymentsof any kind received as a consideration for the use of, or theright to use, any copyright of literary, artistic or scientif-ic work including cinematograph films, any patent, trade mark,design or model, plan, secret formula or process, or for info-rmation concerning industrial, commercial or scientific exper-ience.Subject to the provisions of Article 16, the term “royalties” shall also include payments of any kind for theuse or the right to use a person’s name, picture or any othersimilar personality rights as well as films or tapes of enter-tainers’ or sportsmen’s performances used for radio or tele-vision broadcasting. 4.The provisions of paragraphs l and 2 shall not apply if thebeneficial owner of the royalties, being a resident of a terr-itory, carries on business in the other territory in which theroyalties arise, through a permanent establishment situatedtherein, and the right or property in respect of which the ro-yalties are paid is effectively connected with such permanentestablishment.In such case the provisions of Article 7 shallapply. 5.Royalties shall be deemed to arise in a territory when the pa-yer is a resident of that territory.Where, however, the per-son paying the royalties, whether he is a resident of a terri-tory or not, has in a territory a permanent establishment inconnection with which the liability to pay the royalties wasincurred, and such royalties are borne by such permanent esta-blishment, then such royalties shall be deemed to arise in theterritory in which the permanent establishment is situated.6.Where, by reason of a special relationship between the payerand the beneficial owner or between both of them and some oth-er person, the amount of the royalties, having regard to theuse, right or information for which they are paid, exceeds theamount which would have been agreed upon by the payer and thebeneficial owner in the absence of such relationship, the pro-visions of this Article shall apply only to the last-mentionedamount.In such case, the excess part of the payments shallremain taxable according to the laws of each territory, dueregard being had to the other provisions of this Agreement.Article 13 Capital Gains 1.Gains derived by a resident of a territory from the alienationof immovable property referred to in Article 6 and situatedin the other territory may be taxed in that other territory.2.Gains from the alienation of movable property forming part ofthe business property of a permanent establishment which anenterprise of a territory has in the other territory, includi-ng such gains from the alienation of such a permanent establi-shment (alone or with the whole enterprise), may be taxed inthat other territory. 3.Gains derived by an enterprise of a territory from the aliena-tion of ships or aircraft operated in international traffic ormovable property pertaining to the operation of such ships oraircraft, shall be taxable only in that territory. 4.Gains derived by a resident of a territory from the alienationof shares deriving more than 50 per cent of their value direc-tly or indirectly from immovable property situated in the oth-er territory may be taxed in that other territory. 5.Gains from the alienation of any property other than that ref-erred to in paragraphs 1, 2, 3 and 4 shall be taxable only inthe territory of which the alienator is a resident. 6.Where enterprises from different jurisdictions have agreed tooperate ships or aircraft in international traffic through abusiness consortium, the provisions of paragraph 3 shall applyonly to such proportion of the capital gains as corresponds tothe participation held in that consortium by an enterprise ofa territory. Article 14 Income from Employment 1.Subject to the provisions of Articles 15, 17 and 18, salaries,wages and other similar remuneration derived by a resident ofa territory in respect of an employment shall be taxable onlyin that territory unless the employment is exercised in theother territory.If the employment is so exercised, such rem-uneration as is derived therefrom may be taxed in that otherterritory. 2.Notwithstanding the provisions of paragraph l, remunerationderived by a resident of a territory in respect of an employm-ent exercised in the other territory shall be taxable only inthe first-mentioned territory if: a) the recipient is present in the other territory for a periodor periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal yearconcerned, and b) the remuneration is paid by, or on behalf of, an employerwho is a resident of the first-mentioned territory, and c) the remuneration is not borne by a permanent establishmentwhich the employer has in the other territory. 3.Notwithstanding the preceding provisions of this Article, rem-uneration derived in respect of an employment exercised aboarda ship or aircraft operated in international traffic by an en-terprise of a territory, may be taxed in that territory. Article 15 Directors' Fees Directors' fees and other similar payments derived by a residentof a territory in his capacity as a member of the board of dire-ctors of a company which is a resident of the other territory,may be taxed in that other territory. Article 16 Artistes and Sportsmen 1.Notwithstanding the provisions of Articles 7 and 14, incomederived by a resident of a territory as an entertainer, suchas a theatre, motion picture, radio or television artiste, ora musician, or as a sportsman, from his personal activities assuch exercised in the other territory, may be taxed in thatother territory. 2.Where income in respect of personal activities exercised by anentertainer or a sportsman in his capacity as such accrues notto the entertainer or sportsman himself but to another person,that income may, notwithstanding the provisions of Articles 7and 14, be taxed in the territory in which the activities ofthe entertainer or sportsman are exercised. 3.The provisions of paragraphs 1 and 2 shall not apply to incomederived from activities performed in a territory by artistesor sportsmen if the visit to that territory is wholly or main-ly supported by public funds of one or both of the territoriesor subdivisions or local authorities thereof. In such case,the income is taxable only in the territory in which the arti-ste or the sportsman is a resident. Article 17 Pensions, Social Security Payments and Similar Payments 1.Payments received by an individual, being a resident of a ter-ritory, under the social security legislation of the other te-rritory, or under any other scheme out of funds created by th-at other territory or a subdivision or a local authority ther-eof, may be taxed in that other territory. 2.Subject to the provisions of paragraph 1 of this Article andparagraph 2 of Article 18, pensions and other similar remuner-ation arising in a territory and paid to a resident of the ot-her territory, whether in consideration of past employment ornot, shall be taxable only in the other territory.However,such pensions and other similar remuneration may be taxed inthe first-mentioned territory if a) contributions paid by the beneficiary to the pension schemewere deducted from the beneficiary’s taxable income in thefirst-mentioned territory under the law of that territory;or b) contributions paid by an employer were not taxable incomefor the beneficiary in the first-mentioned territory underthe law of that territory. 3.Pensions shall be deemed to arise in a territory if paid by apension fund or other similar institution providing pensionschemes in which individuals may participate in order to secu-re retirement benefits, where such pension fund or other simi-lar institution is recognized for tax purposes in accordancewith the laws of that territory. Article 18 Public Service 1. a) Salaries, wages and other similar remuneration, other than apension, paid by an authority administering a territory or asubdivision thereof, or by a local authority of that territ-ory, to an individual in respect of services rendered to su-ch authorities shall be taxable only in that territory. b) However, such salaries, wages and other similar remunerationshall be taxable only in the other territory if the servicesare rendered in that territory and the individual is a resi-dent of that territory who: (i) is a national of that territory under the laws in force inthat territory; or (ii) did not become a resident of that territory solely forthe purpose of rendering the services. 2. a) Any pension paid by, or out of funds created by, an authori-ty administering a territory or a subdivision thereof, or alocal authority of that territory, to an individual in resp-ect of services rendered to such authorities shall be taxab-le only in that territory. b) However, such pension shall be taxable only in the other te-rritory if the individual is a resident of and, under the laws in force in that territory, a national of that territo-ry. 3.The provisions of Articles 14, 15, 16 and 17 shall apply tosalaries, wages and other sim-ilar remuneration, and to pensi-ons, in respect of services rendered in connection with a bus-iness carried on by an authority referred to in paragraph 1.Article 19 Students Payments which a student or business apprentice who is or wasimmediately before visiting a territory a resident of the otherterritory and who is present in the first-mentioned territorysolely for the purpose of his education or training receives forthe purpose of his maintenance, education or training shall notbe taxed in that territory, provided that such payments arisefrom sources outside that territory. Article 20 Other Income 1.Items of income of a resident of a territory, wherever arising, not dealt with in the foregoing Articles of this Agreementshall be taxable only in that territory. 2.The provisions of paragraph l shall not apply to income, otherthan income from immovable property as defined in paragraph 2of Article 6, if the recipient of such income, being a reside-nt of a territory, carries on business in the other territorythrough a permanent establishment situated therein, and theright or property in respect of which the income is paid iseffectively connected with such permanent establishment. Insuch case the provisions of Article 7 shall apply. 3.Notwithstanding the provisions of paragraphs 1 and 2, items ofincome of a resident of a territory not dealt with in the for-egoing Articles of the Agreement and arising in the other ter-ritory may also be taxed in that other territory. Article 21 Elimination of Double Taxation Double taxation shall be avoided as follows: 1.In the case of the territory where the taxation laws administ-ered by the Danish Ministry of Taxation are applied: a) Subject to the provisions of subparagraph c), where a resid-ent of the territory where the taxation laws administered bythe Danish Ministry of Taxation are applied derives incomewhich, in accordance with the provisions of this Agreement,may be taxed in the territory where the taxation laws admin-istered by the Taxation Agency, Ministry of finance in Taip-ei are applied, the first mentioned territory shall allow asa deduction from the tax on the income of that resident, anamount equal to the income tax paid in the other territory;b) such deduction shall not, however, exceed that part of theincome tax as computed before the deduction is given, whichis attributable to the income which may be taxed in the oth-er territory; c) where a resident of the territory where the taxation lawsadministered by the Danish Ministry of Taxation are appliedderives income which, in accordance with the provisions ofthis Agreement shall be taxable only in the territory wherethe taxation laws administered by the Taxation Agency, Mini-stry of Finance in Taipei are applied, the first mentionedterritory may include this income in the tax base, but shallallow as a deduction from the income tax that part of the income tax, which is attributable to the income derived fromthe other territory. 2.In the case of the territory where the taxation laws administ-ered by the Taxation Agency, Ministry of Finance in Taipei areapplied: Where a resident of the territory where the taxation laws adm-inistered by the Taxation Agency, Ministry of Finance in Taip-ei are applied derives income from the other territory wherethe taxation laws administered by the Danish Ministry of Taxa-tion are applied, the amount of tax on that income paid in theother territory and in accordance with the provisions of thisAgreement, shall be credited against the tax levied in the fi-rst mentioned territory imposed on that resident. The amountof credit, however, shall not exceed the amount of the tax inthe first mentioned territory on that income computed in acco-rdance with its taxation laws and regulations. Article 22 Non-Discrimination 1.Nationals of a territory under the laws in force in that terr-itory shall not in the other territory be subjected to any ta-xation or any requirement connected therewith, which is otheror more burdensome than the taxation and connected requiremen-ts to which nationals of that other territory under the lawsin force in that other territory in the same circumstances, inparticular with respect to residence, are or may be subjected.This provision shall, notwithstanding the provisions of Artic-le l, also apply to persons who are not residents of one orboth of the territories. 2.The taxation on a permanent establishment which an enterpriseof a territory has in the other territory shall not be lessfavourably levied in that other territory than the taxationlevied on enterprises of that other territory carrying on thesame activities.This provision shall not be construed as ob-liging a territory to grant to residents of the other territo-ry any personal allowances, reliefs and reductions for taxati-on purposes on account of civil status or family responsibili-ties which it grants to its own residents. 3.Except where the provisions of paragraph l of Article 9, para-graph 7 of Article 11, or paragraph 6 of Article 12, apply,interest, royalties and other disbursements paid by an enterp-rise of a territory to a resident of the other territory shall, for the purpose of determining the taxable profits of suchan enterprise, be deductible under the same conditions as ifthey had been paid to a resident of the first-mentioned terri-tory. 4.Enterprises of a territory, the capital of which is wholly orpartly owned or controlled, directly or indirectly, by one ormore residents of the other territory, shall not be subjectedin the first-mentioned territory to any taxation or any requi-rement connected therewith which is other or more burdensomethan the taxation and connected requirements to which othersimilar enterprises of the first-mentioned territory are ormay be subjected. 5.The provisions of this Article shall apply to taxes which arethe subject of this Agreement. Article 23 Mutual Agreement Procedure 1.Where a person considers that the actions of the authoritiesof one or both of the territories result or will result forhim in taxation not in accordance with the provisions of thisAgreement, he may, irrespective of the remedies provided bythe domestic law of those territories, present his case to thecompetent authority of the territory of which he is a residentor, if his case comes under paragraph l of Article 22, to thatof the territory of which he is a national. The case must bepresented within three years from the first notification ofthe action resulting in taxation not in accordance with theprovisions of the Agreement. 2.The competent authority shall endeavour, if the objection app-ears to it to be justified and if it is not itself able to ar-rive at a satisfactory solution, to resolve the case by mutualagreement with the competent authority of the other territory,with a view to the avoidance of taxation which is not in acco-rdance with the Agreement. Any agreement reached shall be imp-lemented notwithstanding any time limits in the domestic lawof the territories. 3.The competent authorities of the territories shall endeavourto resolve by mutual agreement any difficulties or doubts ari-sing as to the interpretation or application of the Agreement.They may also consult together for the elimination of doubletaxation in cases not provided for in the Agreement. 4.The competent authorities of the territories may communicatewith each other directly, including through a joint commissionconsisting of themselves or their representatives, for the pu-rpose of reaching an agreement in the sense of the precedingparagraphs. Article 24 Exchange of Information 1.The competent authorities of the territories shall exchangesuch information as is forseeably relevant for carrying outthe provisions of this Agreement or to the administration orenforcement of the domestic laws concerning taxes of every ki-nd and description imposed on behalf of the territories, ortheir subdivisions or local authorities, insofar as the taxat-ion thereunder is not contrary to the Agreement. The exchangeof information is not restricted by Articles l and 2. 2.Any information received under paragraph 1 by a territory sha-ll be treated as secret in the same manner as information obt-ained under the domestic laws of that territory and shall bedisclosed only to persons or authorities (including courts andadministrative bodies) concerned with the assessment or colle-ction of, the enforcement or prosecution in respect of, the d-etermination of appeals in relation to the taxes referred toin paragraph 1, or the oversight of the above.Such personsor authorities shall use the information only for such purpos-es.They may disclose the information in public court procee-dings or in judicial decisions. 3.In no case shall the provisions of paragraphs l and 2 be cons-trued so as to impose on a territory the obligation: a) to carry out administrative measures at variance with thelaws and administrative practice of that or of the other te-rritory; b) to supply information which is not obtainable under the lawsor in the normal course of the administration of that or ofthe other territory; c) to supply information which would disclose any trade, busin-ess, industrial, commercial or professional secret or tradeprocess, or information, the disclosure of which would be contrary to public policy (ordre public). 4.If information is requested by a territory in accordance withthis Article, the other territory shall use its informationgathering measures to obtain the requested information, eventhough that other territory may not need such information forits own tax purposes.The obligation contained in the preced-ing sentence is subject to the limitations of paragraph 3 exc-ept where such limitations would preclude a territory from su-pplying information solely because it has no domestic tax int-erest in such information. 5.In no case shall the provisions of paragraph 3 be construed topermit a territory to decline to supply information solelybecause the information is held by a bank, other financialinstitution, nominee or person acting in an agency or a fidu-ciary capacity or relates to ownership interests in a person.Article 25 Assistance in the Collection of Taxes 1.Each of the territories shall endeavor to collect, as if itwere its own tax, any tax referred to in Article 2, which hasbeen imposed by the other territory and the collection of whi-ch is necessary to ensure that any exemption or reduction oftax granted under this Agreement by that other territory shallnot be enjoyed by persons not entitled to such benefits. 2.In no case shall the provisions of this Article be construedso as to impose on a territory the obligation: a) to carry out administrative measures at variance with thelaws and administrative practice of that or of the other te-rritory; b) to carry out measures which would be contrary to public pol-icy (ordre public); c) to provide assistance if the other territory has not pursuedall reasonable measures of collection or conservancy, as thecase may be, available under its laws or administrative pra-ctice; d) to provide assistance in those cases where the administrati-ve burden for that territory is clearly disproportionate tothe benefits to be derived by the other territory. Article 26 Limitation of Benefits 1.Notwithstanding any other provisions of this Agreement, wherea) a company that is a resident of a territory derives its inc-ome primarily from outside that territory (i) from activities such as banking, financing or insurance;or (ii) from being the headquarters, co-ordination centre or sim-ilar entity providing administrative services or other support to a group of companies which carry on business primarily outside the first-mentioned territory; and b) except for the application of the method of elimination ofdouble taxation normally applied by that territory, such in-come would bear a significantly lower tax under the laws ofthat territory than income from similar activities carriedout within that territory or from being the headquarters, co-ordination centre or similar entity providing administrati-ve services or other support to a group of companies whichcarry on business in that territory, as the case may be, any provisions of this Agreement conferring an exemption orreduction of tax shall not apply to the interest or royalti-es derived by such company. 2.Notwithstanding the provisions of Article 10, Article 11 andArticle 12, a territory may tax in accordance with the applic-able tax laws of that territory, dividends, interest and roya-lties paid by a company which is a resident of that territoryto a company, trust or partnership or any other legal person,which is a resident of the other territory, where a) more than 50 per cent of the capital or votes in the company, trust or partners-hip or any other legal person receivingthe dividends, interest or royalties is owned or controlleddirectly or indirectly by a person or by associated compani-es, trusts or partnerships or any other legal persons not being residents of one of the territories or of the EuropeanUnion or the European Economic Area, and b) the dividends, interest or royalties would not have been su-bject to a reduced tax rate or tax exemption in the territo-ry in which they arise under the provisions of any double taxation agreement or other agreement concluded between thatterritory and other territories or jurisdictions, if paid directly from the company of the first mentioned territoryto any person or associated companies, trusts or partnershi-ps or any other legal persons which directly or indirectlyparticipate in the ownership or control of the company to which the dividends, interest or royalties are paid. 3.Notwithstanding the provisions of any other Article of thisAgreement, a resident of a territory shall not receive the be-nefit of any reduction in or exemption from tax provided forin the Agreement by the other territory if the main purpose orone of the main purposes of such resident or a person connect-ed with such resident was to obtain the benefits of this Agre-ement. 4.For the purposes of this Article the term “associated compan-ies, trusts or partnerships or any other legal persons” meanscompanies, trusts or partnerships or any other legal personsin which the same persons participate directly or indirectlyin the management, control or capital. Article 27 Entry into Force 1.The Danish Trade Organisations’ Taipei Office and the TaipeiRepresentative Office in Denmark shall notify each other inwriting that the legal requirements for the entry into forceof this Agreement in their respective territories have beencomplied with. 2.The Agreement shall enter into force on the date of the laterof the notifications refer-red to in paragraph l and its prov-isions shall have effect: a) in respect of taxes due or withheld at source, on income cr-edited or payable on or after January 1 of the year next fo-llowing the year in which the Agreement entersinto force;b) in respect of other taxes charged, on income of taxable per-iods beginning on or after January 1 of the year next follo-wing the year in which the Agreement enters into force. Article 28 Termination This Agreement shall remain in force indefinitely.However, theDanish Trade Organisations’ Taipei Office and the Taipei Repre-sentative Office in Denmark may terminate the Agreement by givi-ng written notice of termination on or before 30 June in any ca-lendar year following after a period of five years from the ent-ry into force of this Agreement. In such case, this Agreementshall cease to have effect: a) in respect of taxes due or withheld at source, on income cre-d ited or payable on or after January 1 of the year next fol-lowing the year in which the notice of termination is given;b) in respect of other taxes charged, on income of taxable peri-ods beginning on or after January 1 of the year next followi-ng the year in which the notice of termination is given. IN WITNESS WHEREOF the undersigned, being duly authorized there-to, have signed this Agreement. Done in duplicate at Taipei this 30 day of Aug, 2005, in the En-glish language. For the TaipeiFor the Danish RepresentativeTrade OfficeOrganisations’ in DenmarkTaipei Office Ping-nan ChangFlemming Aggergaard