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Law revised to allow air, sea carriers to remit Chinese revenues

Law revised to allow air, sea carriers to remit Chinese revenues

Taipei, May 28 (CNA) The Legislative Yuan approved a revision to the Act Governing the Relations between the Peoples of the Taiwan Area and the Mainland Area Friday to allow local air carriers and shipping companies to wire revenues earned in China back to Taiwan.
The revision was necessary because although two transport agreements covering air and sea carriers between Taiwan and China were signed in 2009 that permitted carriers on both sides to remit their revenues earned within the other's jurisdiction tax-free, it could not be implemented without the act's revision.
Without the agreement, local carriers' revenues earned in China are subject to 3 percent business tax and 1.25 percent income tax.
The problem is especially serious for air carriers that have accumulated more than NT$6.5 billion (US$203.08 million) in China-earned revenues since direct flights were launched between the two sides in July 2008.
The inability to get their Chinese revenues back to Taiwan has seriously impeded the capital flow at home for these carriers, an executive of a leading local carrier said.
Friday's revision will be effective retroactively, so that the affected carriers can remit any Chinese revenues earned prior to the revision.
(By Chou Yung-chieh and Maubo Chang)




Updated : 2021-06-17 11:16 GMT+08:00