TAIPEI: An agreement between Taiwan and the Czech Republic on double taxation avoidance and fiscal evasion prevention with respect to taxes on income was concluded Dec. 12 in Prague, setting the stage for increased investment and trade as well as industrial and technological cooperation between the two countries, according to the Ministry of Finance. The pact was inked by Wang Chung-i, representative of the Taipei Economic and Cultural Office in Prague, and Vaclav Jilek, head of the Czech Economic and Cultural Office in Taipei, on behalf of their respective sides. Under the accord, taxes cannot be levied by both sides on the same assets, income or financial transactions, the MOF said, adding that the deal also includes a dispute resolution mechanism.
The ministry noted that Taiwan has 32 comprehensive bilateral tax agreements in effect with partners around the world. Other European nations that share such preferential tax treatment with Taiwan include Austria, Belgium, Denmark, France, Germany, Italy, Sweden and the U.K. The government is committed to establishing similar agreements with additional countries, particularly target nations of the New Southbound Policy. Such accords will be formed under the principles of equality and mutual benefits so as to boost bilateral investment and trade, the MOF said. According to the Ministry of Foreign Affairs, many Taiwan companies have operations in the Czech Republic in industries such as electronics components and textiles. It added that Taiwan investment in the central European nation has led to the creation of an estimated 23,000 jobs. Statistics from the Bureau of Foreign Trade under the Ministry of Economic Affairs show that bilateral trade amounted to over US$644.8 million in 2016, a year on year increase of 10.2 percent.