October 21, 2016
No.244
The Republic of China (Taiwan) and the Republic of Poland concluded the signing of an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income in Taipei on October 21.
The agreement was signed by Henry M. J. Chen, Representative of the Taipei Economic and Cultural Office in Warsaw; and Maciej Gaca, Director General of the Warsaw Trade Office in Taipei. Witnessing the signing were Chih-Chung Wu, ROC Deputy Minister of Foreign Affairs; Tzu-Hsin Wu, ROC Administrative Deputy Minister of Finance; and Tadeusz Kościński, Poland’s Under Secretary of State for Economic Development. The purpose of the agreement is to make it more convenient for Taiwanese and Polish enterprises to invest or do business in each other’s countries, as well as to advance bilateral economic and trade exchanges and cooperation.
The agreement will take effect after both countries have completed the necessary domestic procedures and notified each other in writing. The measures described in the agreement will then be formally implemented on January 1 in the following year. Poland is Taiwan’s 10th largest trade partner in Europe, and some 29 Taiwanese companies have already invested approximately US$203 million as part of operations there, creating around 4,600 jobs. The agreement, once implemented, will create tax fair and friendly environments that investment by enterprises of both countries. Building on an already strong foundation, this will facilitate bilateral investment, trade, employment opportunities, technological exchange and cooperation on taxes and tariffs.
Poland is the 15th European country to sign an agreement on the avoidance of double taxation with Taiwan, following Austria, Belgium, Denmark, France, Germany, Hungary, Italy, Luxembourg, Macedonia, the Netherlands, Slovakia, Sweden, Switzerland and the United Kingdom. The agreement is the 34th comprehensive income tax agreement that Taiwan has signed worldwide.
Taiwan and Poland enjoy cordial and substantive relations. Together with previous bilateral agreements and memoranda of understanding signed in such areas as youth working holidays (November 2014), air transport (March 2015), pharmaceutical products and medical devices (January 2016), and the mutual recognition of driver’s licenses (February 2016), this agreement on the avoidance of double taxation demonstrates both countries’ commitment to further strengthening mutually beneficial, substantive relations. In addition to deepening economic exchange and cooperation, Taiwan and Poland also engage in educational and cultural exchanges, with 41 Taiwanese higher education institutions and 38 Polish counterparts having signed 87 exchange and cooperation agreements. The two countries have also inked three sister city agreements, including one twinning Taipei and Warsaw, benefitting the two countries via multifaceted exchanges and cooperation in multiple fields that combine distinct local characteristics. (E)