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.