TAIPEI (TVBS News) — Minister of Economic Affairs Kuo Jyh-huei (郭智輝) on Sunday (June 23) advocated for the expedited signing of an "Avoidance of Double Taxation Agreement" (ADTA) to reduce investment costs and bolster economic ties between Taiwan and the U.S.
Kuo made the statement while attending the SelectUSA Investment Summit hosted by the U.S. Department of Commerce. Accompanied by Alexander Tah-ray Yui (俞大㵢), Taiwan's representative to the U.S., the delegation expressed their hopes for strengthening U.S.-Taiwan relations. Sandra Oudkirk, outgoing Director of the American Institute in Taiwan, Taipei Office, highlighted that Taiwan’s delegation, which included over 120 business representatives, was among the largest at the summit.
U.S. Deputy Secretary of Commerce Marisa Lago acknowledged Taiwan as a vital economic ally, noting that Taiwanese direct foreign investments in the U.S. exceeded US$22 billion two years ago, supporting 22,000 American jobs. Investments from the U.S. into Taiwan were nearly US$17 billion in the same year.
Yui stressed the significant role of the ADTA in reducing tax burdens for businesses in Taiwan and the U.S., thereby enhancing the investment climate. Minister Kuo underscored the agreement's importance for Taiwan's small and medium-sized enterprises (SMEs), which are sensitive to cost and taxation issues when considering overseas expansion.
The U.S. House of Representatives recently passed the "Tax Relief for American Families and Workers Act of 2024," which includes provisions for the "United States-Taiwan Expedited Double-Tax Relief Act." The legislation awaits Senate approval before being forwarded to President Biden for signing. The act is designed to alleviate excessive taxation and will take effect once the U.S. Department of the Treasury confirms reciprocal treatment from Taiwan.