Tokyo, Taipei sign off on double-taxation agreement

TAIPEI - The 40th annual economic and trade consultation meeting between Taiwan and Japan has completed three important pacts including an agreement on the avoidance of double taxation, Taiwan and Japan have agreed to cap the taxation rates for both dividends and royalties at 10% and to create a dispute settlement framework and information exchange mechanism.

The agreement is expected to boost two-way investment and trade by reducing the tax burdens on investors. Taipei and Tokyo also signed two MoUs on the enforcement of competition laws and disaster prevention collaboration.
Taiwan Ministry of Finance statistics show that trade between Taiwan and Japan topped US$61.59 billion last year. Japan is Taiwan’s third-largest trading partner and Taiwan is Japan’s 10th biggest trade partner.
As of September this year, Japan is the third leading source of foreign investment in Taiwan with US$18.58 billion. Taiwan’s accumulated investment in Japan stands at US$3.75 billion. www.taiwantoday.tw (ATI).