The Double Taxation Relief (Taxes on Income) (Taiwan) Order 2002

Article 23 Limitation of relief

(1) Where under any provision of this Agreement any income or gains are relieved from tax in a territory and, under the law in force in the other territory an individual, in respect of that income or those gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other territory and not by reference to the full amount thereof, then the relief to be allowed under this Agreement in the first-mentioned territory shall apply only to so much of the income or gains as is taxed in the other territory.

(2) Notwithstanding the provisions of any other Article of this Agreement, a resident of a territory who, as a consequence of domestic law concerning incentives to promote foreign investment, is not subject to tax or is subject to tax at a reduced rate in that territory on income or capital gains, shall not receive the benefit of any reduction in or exemption from tax provided for in this Agreement by the other territory if the main purpose or one of the main purposes of such resident or a person connected with such resident was to obtain the benefits of this Agreement.

(3) Where, under any provision of this Agreement, a partnership is entitled, as a resident of the territory referred to in paragraph (3) (b) of Article 2 of this Agreement, to relief from tax in the territory referred to in paragraph (3) (a) of Article 2 of this Agreement on any income or capital gains, that provision shall not be construed as restricting the right of the territory referred to in paragraph (3) (a) of Article 2 of this Agreement to tax any member of the partnership who is a resident of the territory referred to in paragraph (3) (a) of Article 2 of this Agreement on his share of such income or capital gains; but any such income or gains shall be treated for the purposes of Article 22 of this Agreement as income or gains from sources in the territory referred to in paragraph (3) (b) of Article 2 of this Agreement.