Newsletter
Taiwan-Austria Tax Treaty Takes Effect from 1 January 2015
With an aim to avoiding double taxation, improving the investment environment for Taiwan, and increasing the attractiveness of foreign investment into Taiwan, the Ministry of Finance in recent years has focused on entering into tax treaties with other jurisdictions. Following a tax treaty signed with Luxemburg, Taiwan and Austria entered into a tax treaty on 20 December 2014, which is the 28th comprehensive income tax treaty that the Taiwan government has entered into. Pursuant to Article 27 of the Taiwan-Austria Tax Treaty (the "Treaty"), the Treaty shall have effect: (a) in respect of taxes withheld at source, to income received as from 1 January 2015; and (b) in respect of other taxes on income, and taxes on capital, to taxes chargeable for any taxable year beginning from 1 January 2015.
The Treaty consists of 28 Articles. The tax relieves under the Treaty that would impact both countries' economy, trade, investment and exchange of technology most include the tax exemption on business profits, and preferential withholding tax rate on dividends, interests, royalties and income from securities transactions. The Treaty will definitely benefit the business profits of enterprises incorporated in both jurisdictions and enhance the exchange of high-technologies of both jurisdictions.