Taiwan and China yesterday in the Chinese city of Fuzhou signed two agreements on double taxation avoidance and aviation safety.
The agreements were signed by Straits Exchange Foundation Chairman Lin Join-sane (林中森) and China’s Association for Relations Across the Taiwan Straits Chairman Chen Deming (陳德銘).
The double taxation avoidance agreement is the 29th of its kind to be signed by Taiwan and the 103th to be signed by China.
According to the agreement, any businesses whose places of effective management are in Taiwan will be protected, including those that invest in China via a third territory.
The agreement is based on the principle of non-retroactivity and non-applicability to criminal matters, which is aimed at protecting Taiwanese businesses that might face criminal prosecution for tax evasion in China.
Ministry of Finance officials said that the agreement would not only reduce the tax burden on Taiwanese companies, but would also attract foreign companies to set up operations in Taiwan.
The accord allows foreign companies that have set up subsidiaries in Taiwan to access the Chinese market directly, the officials said, adding that new foreign companies that meet the criteria are also covered by the agreement.
The flight safety agreement allows Taiwanese and Chinese carriers operating cross-strait routes to appoint local maintenance plants to provide safety inspections, maintenance services and airworthiness inspections, officials said.
This would reduce the chances of flight delays and decrease operating costs, officials said.
Airlines will also be allowed to use locally available parts for maintenance purposes, which should help reduce waiting time, they said.
The Taoyuan Flight Attendants’ Union yesterday vowed to protest at the EVA Air Marathon on Sunday next week should EVA Airway Corp’s management continue to ignore the union’s petition to change rules on employees’ leave of absence system, after a flight attendant reportedly died after working on a long-haul flight while ill. The case has generated public discussion over whether taking personal or sick leave should affect a worker’s performance review. Several union members yesterday protested at the Legislative Yuan, holding white flowers and placards, while shouting: “Life is priceless; requesting leave is not a crime.” “The union is scheduled to meet with
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