Taiwan, China trade talks to focus on aviation, double-tax agreement

TAIPEI – Taiwan and China are scheduled to hold their 11th official round of talks on essentially trade-related issues in Fuzhou, China, on August 25.

The Taipei-based Straits Exchange Foundation (SEF) and Beijing-headquartered Association for Relations Across the Taiwan Straits are scheduled to hold their 11th round of talks Aug. 25 in Fuzhou, mainland China.
Taipei-based Straits Exchange Foundation Chairman, Lin Join-sane, and his counterpart from the Beijing-headquartered Association for Relations Across the Taiwan Straits (ARATS), Chen Deming, are expected to finalise agreements on aviation safety, including fit-to-fly criteria, and taxation co-operation issues.
The latter, first floated during the fourth SEF-ARATS talks in 2009, comprises avoidance of double taxation and a comprehensive framework for information exchange and dispute settlement.
Taiwan’s Deputy Minister of Finance, Wu Tang-chieh, said the collaborative mechanism is projected to generate tax revenues of NT$8.1 billion (US$249.8 million) to NT$13.3 billion for Taiwan annually, while reducing local enterprises’ tax exposure by NT$3.8 billion.
“Although Taiwan retains full allocation of taxation rights, both sides have reached an understanding on data use restrictions, nondisclosure of taxpayer information, prosecutions and retroactive assessments,” he said.
The SEF and ARATS have concluded 21 cross-strait pacts since 2008, spanning such issues as direct flights, food safety management and health care co-operation. www.taiwantoday.tw (ATI).