U.S. and Taiwan to Tackle Double Taxation for Economic Boost

The U.S. and Taiwan are set to negotiate a deal targeting double taxation, aiming to boost investment and reduce financial burdens for businesses. This move aligns with efforts to enhance semiconductor supply chains and the CHIPS and Science Act's objectives. It also supports Taiwanese investments in the U.S.

The United States and Taiwan are preparing to engage in negotiations over the coming weeks on an agreement designed to alleviate double taxation issues, according to the U.S. Treasury Department's announcement on Tuesday.

This anticipated agreement is expected to foster investment between the two regions, a goal long sought by Taipei. The announcement coincided with the visit of a senior U.S. diplomat, tasked with managing Taiwan-U.S. relations, who arrived in Taipei on Tuesday. Currently, the absence of a formal diplomatic relationship means Taiwanese entities face taxation on income by both U.S. and Taiwanese authorities.

As a pivotal global supplier of semiconductor chips, Taiwan plays a crucial role in various sectors, including consumer goods and military. The U.S. is eager for Taiwanese chip companies to establish manufacturing facilities stateside. The Treasury Department emphasized that this negotiation builds on congressional initiatives, with the administration collaborating on legislation for agreement approval.

(With inputs from agencies.)