Source: Taiwantrade | Updated: 19 December 2015
Taiwan and Japan have recently signed a bilateral agreement on the avoidance of double taxation in Tokyo, according to the Ministry of Foreign Affairs.
The two sides also signed two memoranda of understanding on the application of competition laws and on cooperation and exchanges on disaster prevention, the ministry announced.
Under the double taxation avoidance agreement (DTTA), Taiwanese nationals working in enterprises in Japan will not be taxed in both countries; the same applies for Japanese nationals working in Taiwan.
The DTTA extends to company employees who are on a long-term business trips to the other country.
The taxation agreement is expected to help Taiwan recruit high-tech talent from Japan, in particular in the information technology sector, as Taiwan seeks to hone its global competitive edge, particularly against South Korea and mainland China, the two associations said.
The DTTA is also likely to help boost bilateral investments, according to the associations.
Japan is the 31st economy with which Taiwan has signed such an agreement. A similar accord was signed between Taiwan and China in August.
In 2014, Japan's investment in Taiwan increased by an annual 34 percent to about US$550 million, according to statistics from the Ministry of Economic Affairs. The data also showed that Taiwan's investments in Japan rose from US$170 million in 2013 to US$680 million in 2014.
Edmond Yin (firstname.lastname@example.org)