Austria double tax avoidance accord set for Jan.

TAIPEI, Taiwan — An agreement signed by Taiwan and Austria on avoiding double taxation and preventing tax evasion is expected to take effect next month, the Ministry of Foreign Affairs (MOFA) announced yesterday.

The latest announcement came after the Austrian parliament approved the pact on Dec. 17, MOFA’s Department of European Affairs Director-General Zhang Ming-zong (張銘忠) said at a news briefing yesterday.

According to regulations laid out by Austria, the agreement will take effect on Jan. 1 as long as both countries have completed all legal procedures related to the pact, Zhang said.

In Taiwan, all legal procedures related to the agreement have been completed, he noted.

This means that the agreement will officially take effect as of January, he added.

This is the 28th comprehensive agreement on the avoidance of double taxation concluded by Taiwan with its trading partners and the 13th such treaty it has signed with a European country.

The pact is expected to create an environment that ensures tax fairness between the two countries, making them more friendly to bilateral investment, Zhang said.

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.

Bilateral trade between Taiwan and Austria amounted to US$780 million last year, while trade during the first three quarters of 2014 came to more than US$630 million, the ministry said.

The agreement was signed by representatives of both countries on July 12 this year.