Proposal for tax avoidance bill with HK, Macau moves forward
Members of Taiwan’s executive and legislative branches gave their unanimous support to a proposed bill that would help pave the way for Taiwan to sign double taxation avoidance agreements with Hong Kong and Macau during a policy coordination meeting Nov. 14 in Taipei City.
Drafted by the Cabinet-level Mainland Affairs Council, the proposed amendment to the Laws and Regulations Regarding Hong Kong & Macau Affairs targets Taiwan shipping and air transport firms operating in the two regions and their counterparts conducting business in the local market.
“The amendment will level the playing field for local firms with interests in Hong Kong and Macau by reducing their taxes and boosting their global competitiveness,” said Executive Yuan Deputy Spokesperson Chang Hsiu-chen.
“It will also strengthen Taiwan’s business environment and attract more shipping and airline companies from the two regions to set up bases of operation in Taiwan,” she said, adding that the policy change is also expected to boost people-to-people exchanges.
According to Chang, the Ministry of Finance has been directed to draft detailed implementation regulations. The bill will be sent to the Cabinet for approval Nov. 17 before being forwarded to the Legislative Yuan for review.
Taoyuan City-headquartered China Airlines Ltd. and EVA Airways Corp., Taipei City-based Mandarin Airlines, as well as Hong Kong-based Cathay Pacific Airways and Hong Kong Airlines operate Taiwan-Hong Kong routes, while EVA, Taipei-based Tigerair Taiwan and Air Macau Co. Ltd. fly between Taiwan and Macau.
