Taiwan, Canada ink double taxation avoidance pact
A double taxation avoidance agreement between Taiwan and Canada was concluded Jan. 15 in Taipei City, paving the way for expanded exchanges in clean energy, health care, sustainable development, services and technology.
Set to take effect Jan. 1, 2017, the pact prevents the levying of tax by both sides on the same asset, income or financial transaction. It also includes a dispute resolution mechanism, according to the ROC Ministry of Finance.
“This is the first comprehensive taxation treaty reached by Taiwan in North America,” an MOF official said. “It also builds on the foundation of increased direct flights, visa-free privileges and working holiday programs starting in 2010.”
Exchanges between Taiwan and Canada have been on a steady growth track in recent years, with two-way trade reaching US$3.4 billion for the first 11 months of last year. This makes Taiwan Canada’s 12th largest trading partner and Canada the nation’s 17th largest export market.
Such a healthy state of affairs is also illustrated by robust growth in bilateral investment. To date, accumulated investments of US$400 million and US$560 million have been made by Taiwan and Canadian enterprises, respectively, in the two countries.
“Both economies are highly complementary in terms of international trade and technological development,” the official said. “Going forward, we expect to join hands on furthering industrial innovation and creating more benefits for the people of the two nations.” (YHC-JSM)
