Taiwan removed from EU noncooperative tax watchlist

Taiwan was removed from the EU's noncooperative jurisdiction for tax purposes watchlist March 12, reflecting the effectiveness of government measures in bringing local rules and regulations in line with global standards.

According to the Ministry of Finance, Taiwan was among 92 countries and territories included in a review launched two years ago by the EU Code of Conduct Group. This aimed to enhance cooperation on fair taxation, fighting tax avoidance, and improving good governance and transparency.

A total of 17 countries and territories were identified as having taken no meaningful action to address deficiencies in respective tax systems. Although Taiwan was not included in the group, it did make the watchlist.

The EU advised the government to remedy the situation by continuing to work to abolish or amend income tax incentive provisions; exchange relevant information; and implement measures to halt base erosion and profit shifting.

In response, the MOF has been coordinating closely with the Ministries of Economic Affairs, Foreign Affairs and Transportation and Communications, as well as the Cabinet-level Financial Supervisory Commission, to address the concerns raised by the EU.

Adopted measures include fast-tracking regulatory revisions to enhance information sharing with EU member states and ensure equitable taxation for firms operating in Taiwan's free trade zones, and initiating procedures to smoothly settle cross-border taxation disputes.

The MOF said the government will keep collaborating with the EU and other like-minded partners around the world to promote information transparency and tackle tax avoidance. In addition to bolstering Taiwan's global business image, these efforts will better ensure the rights and competitiveness of homegrown firms operating abroad.

Source: Taiwan Today