ROME: An agreement eliminating double taxation and minimizing tax evasion was recently concluded by Taiwan and Italy, paving the way for further development of the bilateral trade relationship.
Taking effect Jan. 1, 2016, the pact prevents the levying of tax by both sides on the same asset, income or financial transaction. It is expected to bolster investment and trade activities spanning automobile parts, chemicals, clothing, logistics and pharmaceuticals.
The agreement also includes an adjustment mechanism for enterprises to handle transfer pricing and related issues. ROC Ministry of Finance statistics revealed that Italy is Taiwan’s fifth largest trading partner in the EU, with two-way trade reaching US$4.13 billion in 2014.
Taiwan has reached comprehensive taxation treaties with 29 countries and territories worldwide. In the past few months, similar pacts were signed with Japan and Canada, both scheduled to come into effect next year following completion of legal procedures.
The ROC is also expanding economic ties with its major trading partners. According to the Ministry of Economic Affairs, the country has entered into bilateral investment agreements with 21 countries and territories to date.
At the same time, efforts are underway to further develop the Taiwan-U.S. economic relationship. Taipei and Washington have completed the ninth round of talks under the bilateral Trade and Investment Framework Agreement. The two sides reached important understandings on key issues like intellectual property rights protection, multilateral economic integration and technical barriers to trade.
The Taiwan-EU trade relationship is receiving similar attention. Taipei and Brussels are expected to open preparatory BIA talks this year, with negotiators aiming to produce a schedule of respective commitments and undertakings.
This development springboards off Taiwan’s inclusion in the EU’s Enterprise Europe Network last May, a move opening the door to a wide array of business opportunities for local small and medium enterprises.
