News/Press

Taiwan, China sign taxation, flight safety pacts

Date:2015-08-26 Read

Fuzhou, China, Aug. 25 (CNA) Taiwan and China signed two agreements on double taxation avoidance and aviation safety in the southeastern Chinese city of Fuzhou on Tuesday. The agreements were signed by Lin Join-sane (林中森), chairman of Taiwan's Straits Exchange Foundation, and Chen Deming (陳德銘), president of China's Association for Relations Across the Taiwan Straits, on behalf of their respective governments. The double taxation avoidance agreement is the 29th to be signed by Taiwan and the 103th to be signed by China. Under the agreement, any businesses whose places of effective management are in Taiwan will be protected, including those who invest in China via a third territory. The agreement is based on the principle of non-retroactivity and non-applicability to criminal matters, which is aimed at protecting Taiwanese businesses that might face criminal prosecution in China for tax evasion. According to officials from Taiwan's Ministry of Finance, the agreement will not only reduce the tax burden on Taiwanese companies but will also attract foreign companies to set up operations in Taiwan and access the Chinese market. The agreement allows foreign companies that have set up subsidiaries in Taiwan to access the Chinese market directly, the officials said, adding that new foreign companies that meet the relevant criteria are also covered by the agreement. The flight safety agreement, meanwhile, allows Taiwanese and Chinese air carriers operating cross-Taiwan Strait routes to appoint local maintenance plants to provide safety inspections, maintenance services and airworthiness inspections. This will reduce the chance of flight delays and decrease operating costs. Also, the air carriers are allowed to use locally available parts for maintenance purposes, which will help reduce waiting time. (By Zep Hu and Y.F. Low) Resource : The Central News Agency http://focustaiwan.tw/news/acs/201508250024.aspx