12:00-14:00, Thursday, 13 March 2014

The Sherwood Taipei, Ching Room (3F) / 台北西華飯店 清廳 (3F)

111 Min Sheng E. Road, Sec 3, Taipei /台北市民生東路三段111號

According to statistical data of the Bureau of Foreign Trade, mainland China remains Taiwan's largest trading partner. Considering the increasingly close cross-Strait economic ties, it is essential to have a taxation agreement in place to clarify the tax rules and ease the tax burden for the growing number of Taiwanese individuals/companies that are doing business in/with the mainland.

In particular, double taxation is mitigated by a taxation agreement allocating taxing rights between the jurisdiction in which the relevant income/profits arise (the "source" jurisdiction) and the jurisdiction in which the taxpayer (the recipient of the income/profits) resides. It also requires the resident country to eliminate double taxation where there are competing taxing rights.

Once the cross-Strait Taxation Agreement takes effect, Taiwanese subsidiaries of multi-national companies that engage in transactions with Chinese companies and their employees working in China may have the opportunity to enjoy tax concessions under the agreement in respect to service payments to/from Chinese companies, passive income to/from Chinese companies, transfer pricing adjustment, individual income tax, etc.

Our special guest will provide an overview of the Cross-Strait Taxation Agreement, including but not limited to, the following key features:

- Reduced withholding tax rates for passive income such as dividends, interest and royalties

- Withholding tax exemption for business profits (eg service payments)

- Mutual Agreement Procedure (MAP) and transfer pricing corresponding adjustments

- Taiwanese companies' indirect investment in China

- Capital gains

- Income from employment

- Exchange of information

*Please note that this presentation will be conducted in Chinese, with English translation

About the speaker:

Sung Shiou-ling is an expert in tax administration. Prior to her current position as the Director-General of International Fiscal Affairs Department, MoF, she played an important role as Director of the Taxation Agency, MoF. She received her Master's Degree in Public Finance from National Chengchi University. Ms Sung also completed the International Tax Programme of the Harvard Law School and pursued continuing education at the London School of Economics and Political Science.