October 22, 2004
Taiwan and Belgium representatives signed an agreement to avoid double taxation on October 13, 2004. The agreement was signed in a ceremony at the Taiwan Representative Office in Brussels attended by Taiwan's Representative to the EU, Chen Chien-jen, Director of the Belgian Office, Taipei, Mr. Hugue Mignot, as well as officials from Belgium's Ministry of Finance and investment offices and Taiwan representatives in Belgium from the manufacturing sector.
Under the agreement, both Taiwan and Belgium will be able to avoid heavy tax burdens, as corporations, residents and individuals starting businesses or factories enjoy reduced tax rates on dividends, interest and royalties derived from their business or investment.
The agreement is expected to encourage more investment between the two countries – Belgian companies could bring in high-level technology and business management skills to assist in the upgrading of Taiwan industries, while Taiwan companies can also strengthen their investment or establish a business in Belgium with the reduced taxes. The agreement is expected to not only promote and encourage more investment and trade, but it should also enhance Belgium-Taiwan ties.
Taiwan's investment in Belgium totals US$30 million and is focused in the computer, finance, information and trade restaurant industries. The agreement will increase the business scope of Signatiss S.A., which produces labels for ready made clothes. In addition, two other companies establishing in Belgium include United Taiwan Bank, which has established a branch in Brussels and Evergreen Air, which is establishing a 'European Transshipment Center.' Belgium currently has 18 investment projects in Taiwan, most of which are in the finance, telecommunications, precision machinery and trade sectors.
Currently, investment between the two sides is minimal with more room for development. Positioned in the center of Western Europe, Belgium makes an ideal location for a distribution center in Europe for Taiwanese companies, as Antwerp serves as one of the largest ports in the world and all of its major cities boast an excellent traffic and communications infrastructure. In addition, Belgium possesses advanced technology and skills in the biochemical pharmaceuticals, steel-making, and telecommunications industries.
Taiwan companies would benefit from joint ventures or imported technology from Belgium, especially as both Belgian and Taiwan companies share similarities. Both sides have small-to-medium sized companies which are suitable for engaging in technical cooperation and mutual investment, as well as developing the Asia-Pacific and other third-country markets.
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