TAIPEI (Taiwan News) — The American Chamber of Commerce in Taiwan said in a Friday statement it welcomed “ongoing negotiations” on US-Taiwan double taxation issues, in what was essentially an update.

It intends to reach a formal double taxation agreement so businesses and individuals will not be taxed twice on their income — though tax credit exemptions can be claimed. Taiwan is reportedly the sole country among the US’ top 10 trading partners without such an agreement. 

This lack of an agreement is said to create investment uncertainty. This is despite significant Taiwan investment and support for the US chip industry and strengthening bilateral ties.

AmCham Taiwan said the US Treasury and Congress are working on the issue. This would likely involve amendments to the Internal Revenue Code. 

“The tax treaty, modeled on the US Model Income Tax Convention, will cover critical areas such as reducing withholding taxes on dividends, interest, and royalties, and addressing cross-border worker taxation,” the AmCham statement read.

AmCham’s previous annual white paper on the longstanding issue said the matter should be expedited soon, as it would benefit both the US and Taiwan economies. It would also have a “symbolic value” for US-Taiwan relations.

AmCham Taiwan President Patrick P. Lin (林博智) was quoted as saying: “An agreement between the United States and Taiwan for the avoidance of double taxation has been a key topic for the Chamber and our members for many years. We are encouraged to see these negotiations starting and the potential unlocking of investments that will spur innovation and growth.”