US-Taiwan talks on ADTA tax agreement under way, official says, in move that could benefit chip maker TSMC
- Taipei’s Economic Affairs Minister Wang Meihua said the double taxation issue could be concluded ‘in months’
- There has been no official confirmation from the White House about talks taking place to make investment easier
Economic Affairs Minister Wang Meihua, speaking ahead of an event in Seattle, told reporters that after recent discussions “hopefully in the near few months, we can have the conclusion about the ADTA [Avoidance of Double Taxation Agreement] issue.”
Wang said it was “very important” to avoid double taxation as investment by both sides grows. She highlighted the problem by referring to giant chip maker Taiwan Semiconductor Manufacturing Company (TSMC) and its US investments.
“TSMC and [its] supply chain, if they are investing in the US, may face the double taxation issue,” Wang said, ahead of an event organised by US think tank National Bureau of Asian Research in Seattle.
Wang is in Seattle for the two-day Apec energy ministers’ meeting, which begins on Wednesday.
Taiwanese politicians and private enterprises have been pushing for an agreement for decades, but there is now stronger support from the US Congress because of rising US-China rivalry and Washington’s plan to strengthen its semiconductor industry.