Economy

Taiwan, Thailand fast-track tax agreement

ROC Representative to Thailand Henry Chen (right) and his Thai counterpart Kriangsak Kittichaisaree celebrate the signing of a bilateral taxation agreement Dec. 4 in Taipei City. (MOFA)

• Publication Date：12/04/2012
• Source： Taiwan Today
• By  Meg Chang

Trade between Taiwan and Thailand is set for a significant boost under a bilateral taxation agreement taking effect by year-end, according to the ROC Ministry of Finance Dec. 4.

Signed the day before by ROC Representative to Thailand Henry Chen and his Thai counterpart Kriangsak Kittichaisaree in Taipei City, the pact completes a process that began in July 1999.

“The conclusion of this agreement illustrates the commitment of both countries to eliminating double taxation and cracking down on tax evasion,” an MOF official said.

Held up in the Thai National Assembly for many years, the pact was finally given the green light in June, clearing the way for Taipei and Bangkok to begin working on revisions to the original agreement. These changes will better reflect the current state of both nations’ economies and two-way trade.

“Reduced tax on dividends paid to companies and individuals in Thailand should see a rise in inbound investment from the kingdom,” the official said, adding that a lower rate on interest income for both sides will spur capital flows.

Taiwan has inked 25 tax agreements with countries such as Australia, Germany, India, Singapore and Switzerland. The German pact will come into force Jan. 1, 2013.

MOF statistics reveal that Taiwan is Thailand’s fifth trading partner, with bilateral trade amounting to US$8.71 billion for the first 10 months, down 4.89 percent from the same period last year. Around 15,000 ROC nationals reside in Thailand for business purposes. (JSM)

Write to Meg Chang at sfchang@mofa.gov.tw