Taiwan, RI sign tax accord

Taiwan, RI sign tax accord

TAIPEI (AFP): Taiwan yesterday signed a double-taxation
avoidance agreement with Indonesia, in a move that will further
improve ties between the two countries in the absence of
diplomatic relations.

The foreign ministry here announced that the accord was signed
in Taipei at the finance ministry with Lu Pao-sun, Taiwan's trade
representative to Jakarta, and J. B. Oetoro, chairman of the
Indonesian Trade and Economic Office to Taipei.

Among other things, operators of shipping and air
transportation will be waived from paying profit and income taxes
to the host government, while their citizens will be exempted
from the same taxes if the period of their stay does not exceed
120 days, according to the accord.

Performers, athletes, teachers, researchers and students
invited to work or perform will also be exempted from income
taxes.

This was Taiwan's 12th such agreement with another country,
and the second with a country that does not maintain official
ties with Taiwan. Singapore was the first country to sign such an
agreement.

Taiwan's trade relations with Indonesia have increased
rapidly, with bilateral trade amounting to US$3.5 billion last
year. Taiwanese investments in that country stood at $6.8 billion
at the end of last year.