TAIPEI (Taiwan News) — Taiwan's income tax agreement with Tuvalu has entered into force, with the treaty set to take effect on Jan. 1, 2027, the Ministry of Finance said Friday.
The ministry said the agreement was signed in Tuvalu on March 4 and entered into force on June 11, per CNA. It said the deal is Taiwan’s 36th income tax treaty.
The agreement is designed to prevent double taxation and combat tax evasion while providing greater tax certainty for businesses and investors. It caps withholding tax on dividends, interest, and royalties at 10% and provides tax exemptions for qualifying profits, professional income, and certain government-related interest income.
The agreement also includes a consultation mechanism, allowing taxpayers who believe the treaty has been incorrectly applied to request discussions between the two tax authorities. The ministry explained that the provision is intended to improve clarity and support closer industrial and technological cooperation.
The ministry added that the treaty is expected to strengthen the investment environment between Taiwan and Tuvalu while reducing tax burdens on economic activity. It said expanding Taiwan’s tax network will provide Taiwanese companies with stronger protections as they increase their overseas investments.
