Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada


Canada and Taiwan Territories Tax Arrangement Act, 2016 (S.C. 2016, c. 13, s. 3)

Act current to 2024-04-01

SCHEDULE 2(Section 2)Protocol of Understanding

At the time of signing of this Arrangement Between the Canadian Trade Office in Taipei and the Taipei Economic and Cultural Office in Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, the undersigned have agreed upon the following provisions which will be an integral part of the Arrangement. It is understood that:

  • 1 With reference to paragraph 1 of Section 4, the term “instrumentality” means any entity created or organized by the authority administering either territory or a subdivision thereof in order to carry out functions of a governmental nature.

  • 2 With reference to paragraph 4 of Section 13, for greater certainty, the term “the value of which is derived” means whether such value is derived directly or indirectly.

  • 3 With reference to paragraph 4 of Section 13, “principally” means more than 50 per cent.

  • 4 With reference to paragraph 6 of Section 13, it is understood that the determination of the gain that accrued in a territory while an individual was a resident of that territory in respect of a property will be made by reference to the lesser of the fair market value of the property at the time that the individual ceased to be a resident of that territory or the proceeds of disposition realized at the time of the actual alienation of the property.

  • 5 With reference to paragraph 1 of Section 14, where income derived by a resident of a territory in respect of professional services or other activities of an independent character may be taxed in the other territory, there will be allowed as deductions expenses which are incurred for the purposes of performing such services in determining taxable income.

  • 6 With reference to Section 25, it is understood that its provisions do not require the territories to exchange information on an automatic or a spontaneous basis.

SIGNED in duplicate at Ottawa, on this 13th day of January 2016, and at Taipei, on this 15th day of January 2016, in the English, French and Chinese languages, each version being equally valid.


Mario Ste-Marie
Executive Director


Rong-chuan Wu

Date modified: