The US and Taiwan will begin discussing a comprehensive tax deal to address double taxation, the US Treasury Department stated on Tuesday.
A comprehensive tax agreement is expected to provide significant benefits to both countries, particularly in support of President Joe Biden’s CHIPS and Science Act, which aims to strengthen the semiconductor supply chain, create jobs, and incentivise investments in semiconductor manufacturing facilities across the United States, according to a statement.
The US Treasury Department stated that this will reduce double taxation barriers for further investment by Taiwan into the United States, and vice versa, particularly for the small and medium-sized enterprises that are crucial to a complete semiconductor ecosystem.
The first round of negotiations is expected to take place in the coming weeks, the Treasury Department added.
