Luxembourg’s parliament has approved an agreement signed by Taiwan and Luxembourg on avoiding double taxation and preventing tax evasion.
The agreement, which was signed by the taxation agency of Taiwan’s ministry of finance and the Direct Tax Administration of Luxembourg on 19 December 2011, will come into force on 1 January 2015.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Following the approval, the agreement will now be submitted to Grand Duke of Luxembourg Henri for his signature before it comes into effect.
Ministry of Foreign Affairs said that all legal procedures related to the deal have been completed in Taiwan.
The pact marks as the 27th agreement for the avoidance of double taxation signed by Taiwan and 12th such treaty it has concluded with a European country.
The agreement is expected to ensure tax fairness in the two signatory countries to facilitate bilateral investment.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe double taxation agreement between the two countries would further improve the bilateral trade contacts between the two countries as well as enable technical exchanges, strengthen taxation cooperation and create jobs.
MOFA added that it will follow the principle of flexible diplomacy in advancing the nations economic and trade development, creating an environment favorable for Taiwanese business to develop and for foreign enterprises to invest in Taiwan.
Taiwan and Luxembourg saw trade of US$33.98 million in 2013.
"Bilateral trade has enormous potential. It is important to act fast to enhance our competitiveness in both Luxembourg and the EU markets," the MOEA Bureau of Foreign Trade said.
