The government is committed to promoting fair and transparent taxation, and will continue working with its international partners to tackle evasion, fraud and money laundering around the world, the Ministry of Finance said Dec. 6 after Taiwan was not featured on the List of Non-cooperative Jurisdictions for Tax Purposes released the day before by the Council of the European Union.
Taiwan was among 92 countries and territories included in a review launched by the EU Code of Conduct Group in January this year aimed at fostering cooperation on fair taxation, taxation transparency and the implementation of measures to tackle base erosion and profit shifting (BEPS).
According to the MOF, upon receiving a request from the EU to participate in the study, the Cabinet instructed relevant agencies to fully comply by providing detailed information on the nation’s taxation regime. In its response in October, the EU commended the country’s measures in tackling avoidance and enhancing information transparency, the ministry said.
The EU urged Taiwan to continue efforts to exchange relevant information; abolish or amend income tax incentive provisions in the Act for the Establishment and Management of Free Trade Zones; and implement BEPS minimum standards. According to the review, Taiwan also pledged to sign and ratify the Multilateral Convention on Mutual Administrative Assistance or have in place a network of agreements covering all EU member states by the end of 2018.
As a champion of fair taxation, Taiwan maintains a close eye on global developments in avoidance and evasion practices, the MOF said, adding that the EU’s requests are in line with government policymaking objectives.
According to the MOF, Taiwan will continue collaborating with countries around the world to promote information transparency and measures against taxation avoidance. In addition to boosting Taiwan’s global image, these efforts will ensure the rights and competitiveness of local businesses operating in the EU, the ministry said.
A total of 17 countries and territories were included by the Council on the List of Non-cooperative Jurisdictions for Tax Purposes for having taken no meaningful action to effectively address deficiencies in their respective tax systems or engage in a meaningful dialogue with relevant EU agencies that can lead to such commitments.
These include Bahrain, Barbados, Macau, Namibia and South Korea, which was highlighted for preferential tax regimes and for failing to commit to amending or abolishing them by 2018. (SFC-E)
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