Luxembourg parliament approves treaty with Taiwan
Taipei, July 11 (CNA) An agreement signed by Taiwan and Luxembourg on avoiding double taxation and preventing tax evasion was approved by Luxembourg’s parliament Wednesday and will take effect on Jan. 1, 2015, the Ministry of Foreign Affairs said in a statement Friday.
The agreement was signed by the Taxation Agency of Taiwan’s Ministry of Finance and the Direct Tax Administration of Luxembourg on Dec. 19, 2011, the statement said.
According to Luxembourg’s regulations, the pact, having been approved by the parliament, will now be submitted to Grand Duke Henri for his signature before it is promulgated, the statement said.
In Taiwan, all legal procedures related to the pact have been completed, according to the MOFA statement.
This is the 27th comprehensive agreement for the avoidance of double taxation concluded by Taiwan with its trading partners and the 12th such treaty it has signed with a European country.
The pact is expected to create an environment that ensures tax fairness in the two countries, making them more friendly to bilateral investment.
It is also expected to help expand bilateral trade contacts and technical exchanges, strengthen taxation cooperation and create jobs, the ministry said, describing it as an important landmark in the development of substantive relations between the two countries.
The MOFA said it will stick to the principle of “flexible diplomacy” in advancing Taiwan’s economic and trade development and continue to create an environment favorable for Taiwanese business to develop and for foreign enterprises to invest in Taiwan.
According to the Bureau of Foreign Trade, bilateral trade between Taiwan and Luxembourg totaled US$33.98 million in 2013.
