Japan, Taiwan to Conclude Tax Treaty

Taipei, Nov. 18 (Jiji Press)--Japan and Taiwan will conclude a tax treaty aimed at preventing double taxation and tax evasion next week, sources said Wednesday. The two sides will ink the pact at a two-day bilateral meeting in Tokyo from Nov. 25, according to the sources. Currently, Taiwanese subsidiaries of Japanese companies pay 20 pct tax when remitting dividends to their parents. When the envisioned treaty takes effect, the subsidiaries will no longer need to pay the tax, which is also imposed in Japan. Japanese subsidiaries of Taiwanese companies will enjoy similar benefits. Taiwan has bilateral tax treaties in force with 28 countries including India and Australia. In August this year, Taiwan sealed such a treaty with China. With Japan, Taiwan has concluded bilateral pacts for economic cooperation, including an investment treaty struck in September 2011. END