Taiwan’s Chip Companies Want Urgent Tax Fix, Envoy Says

Taiwan’s top envoy to the US claimed that double taxation is preventing Taiwanese semiconductor companies from investing more in the US and urged Congress to approve legislation to resolve the issue as soon as feasible.

Hsiao Bi-khim, a representative for Taiwan, expressed optimism that a settlement might be reached before the end of the year thanks to Washington’s bipartisan support for Taiwan.

Because Taiwanese companies pay three times as much tax as their rivals from America’s other main trading partners, she claimed that the deal is one of her top goals.

In an interview with Washington bureau, Hsiao said, “I’ve had Taiwanese firms show me their floor plans and say.

“I can’t go through with this, I can’t convince my shareholders that we can go ahead with this without resolving all these tax concerns.”

Our investors want this issue to be resolve as quickly as possible, she said. “This is of the utmost importance.”

Taiwan’s Chip Companies Want Urgent Tax

One of the major suppliers of cutting-edge semiconductors used in everything from vehicles to cellphones is Taiwan. A self-governing island democracy that China claims.

Although Taiwanese businesses have been urge by the US to increase their investments there. They have frequently cited the lack of a tax agreement as a major barrier.

The fact that Washington doesn’t have formal diplomatic ties with the government in Taipei has made it more difficult to reach a tax agreement.

The Biden administration has nonetheless increased trade and business links with Taiwan, including through a trade pact.

Members of the Senate Finance Committee pledged. Before adjourning for the month of August that they would work on a Taiwan tax bill in September.

Businesses searching for cross-border investment can profit from the legislation. That was introduce in July in a manner akin to a treaty.

A deadline by the end of the year is definitely a feasible expectation.

If all goes according to plan, according to Hsiao. “It’s obviously a goal to get this handled as quickly as possible,” he added.

She remarked, “Congress has been really devote to this. We are sincerely grateful. It has been fairly bicameral and bipartisan. With various committees working to discover the best course of action.

According to Hsiao, trade ties between the US and Taiwan are improving. A first agreement on problems like customs administration was reach in May.

As a result of progress on the US-Taiwan 21st Century Trade Initiative. Which is providing “an important signal of confidence” to the business community.

Taiwan’s Chip Companies Want Urgent Tax

She stated, “We’re working on a schedule for our ongoing negotiations to work. On the outstanding concerns that the two sides have announced.”

They exchanged recommendations on agriculture, labour, and the environment. During their second round of negotiations, which was conduct in Washington last month.

Taiwan’s top envoy to the US claimed that double Taiwan’s Chip Companies. Want Urgent Tax is preventing Taiwanese semiconductor companies from investing. More in the US and urged Congress to approve legislation to resolve the issue as soon as feasible.

Hsiao Bi-khim, a representative for Taiwan, expresse optimism that a settlement might be reach. Before the end of the year thanks to Washington’s bipartisan support for Taiwan.

Because Taiwanese companies pay three times as much tax. As their rivals from America’s other main trading partners, she claim that the deal was one of her top goals.