Taiwan hopeful of reaching tax deal with US in 2024
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Taiwan hopes to reach a long-mooted tax agreement with the United States in 2024.
PHOTO: REUTERS
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TAIPEI – Taiwan hopes to reach a long-mooted tax agreement with the United States in 2024, Taiwanese Finance Minister Chuang Tsui-yun said on Wednesday. Both sides have said the agreement will foster more investment, and Taipei has long pushed for it.
Republican and Democratic members of the US House of Representatives introduced legislation in July that would authorise President Joe Biden’s administration to negotiate the tax agreement with Taiwan.
The lawmakers said the agreement, similar to a treaty, would facilitate investment, protect against tax evasion and allow businesses in both the US and Taiwan to avoid double taxation.
Ms Chuang, taking questions in Parliament, said she would take advantage of attending a meeting of the Asia-Pacific Economic Cooperation grouping in November in the US to discuss the plan with US Treasury Secretary Janet Yellen.
She said the focus of the agreement is to resolve issues such as double taxation of personal income and corporate profits, and if signed, it will create a better environment to attract more investment.
“We hope that it can be signed before June next year. After signing it, the procedures on our side can be completed soon and the bilateral agreement will take effect,” said Ms Chuang.
Taiwanese companies have cumulatively invested US$28.5 billion (S$39 billion) in the US and US companies have invested US$26.6 billion in Taiwan, she added.
Washington and Taipei do not have formal diplomatic relations, so the lack of a tax agreement means Taiwanese businesses and individuals are taxed on their income by both the US and Taiwanese governments.
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