Alexa

Taiwan carriers welcome legal revision

Taiwan carriers welcome legal revision

Taipei, May 28 (CNA) Taiwan-based airlines and shippers responded positively Friday to a legal amendment allowing them to remit their untaxed revenues from China back home.
The Legislative Yuan approved an amendment to the Statute Governing the Relations between the Peoples of the Taiwan Area and the Mainland Area earlier Friday that gave legal authority to Taiwan's aviation and shipping companies to remit China-generated revenues back to Taiwan.
China Airlines (CAL) and EVA Airways, Taiwan's two largest carriers, were upbeat about the amendment.
"It is terrific. We have been waiting for this so long, and we appreciate the Legislative Yuan's support, " said CAL spokesman Chen Yu-peng, who estimated CAL would remit about NT$5 billion (US$155.37 million) back to Taiwan each year.
According to EVA Airways, the legislation will certainly allow the company to more easily deploy its capital, reducing cash flow pressures. The carrier also estimated it would remit billions of Taiwan dollars per year back to Taiwan.
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.
But those agreements could not be implemented without Taiwan revising the act and legally confirming the mutual tax waiver.
Taiwanese carriers have an estimated NT$6.5 billion in deposits in Chinese banks.
(By S. H. Chao and Flor Wang)




Updated : 2021-04-17 03:34 GMT+08:00