Taiwan, Macau to sign double aviation taxation avoidance agreement

Taipei, Dec. 9 (CNA) Taiwan and Macau are scheduled to sign an agreement Thursday to avoid double taxation on aviation business, according to Taiwan’s Mainland Affairs Council (MAC).

The negotiations were concluded recently and the two sides will sign the agreement in Macau, the MAC said in a statement Wednesday.

The new agreement will provide long-term institutionalized protection for aviation businesses on both sides and also help enhance the international competitiveness of Taiwan’s aviation industry, said the MAC, Taiwan’s main agency responsible for China policy.

According to the MAC, the agreement was based on a memorandum of understanding between Taiwan and Macau on avoiding taxation on air carriers, with some revisions.

The MOU expired in 2005 but its validity was extended several times in the absence of a new agreement, a source said.

The new agreement will replace the MOU.