U.S. and Taiwan to Tackle Double Taxation and Boost Investment

The United States and Taiwan are set to negotiate an agreement addressing double taxation, fostering increased investment. This aligns with the CHIPS and Science Act's goals to fortify semiconductor supply chains and attract Taiwanese firms to establish factories in the U.S., easing tax barriers for businesses.

The United States and Taiwan are preparing to begin negotiations to address double taxation issues, according to the U.S. Treasury Department. An agreement is seen as a key step towards enhancing investment ties, an outcome long anticipated by Taipei.

The announcement coincides with the visit of a senior U.S. diplomat to Taipei, underscoring the significance of these talks. Due to the lack of formal diplomatic relations, Taiwanese entities currently face taxation from both U.S. and Taiwanese authorities. This issue is particularly critical as Taiwan remains a crucial global supplier of semiconductor chips, essential for consumer and military products.

The Treasury Department emphasized that this agreement will support the CHIPS and Science Act's objectives, which include bolstering semiconductor supply chains, job creation, and encouraging Taiwanese investment in U.S. manufacturing. Despite recent setbacks in Congress, Washington remains committed to finalizing this tax agreement, which is pivotal for small and medium-sized enterprises within the semiconductor ecosystem.

(With inputs from agencies.)