NPC Chairman: Hopes to Complete Taiwan-US Double Taxation Avoidance Agreement This Year

(Taipei, 16th June 2023) Chairman of the National Development Council, Chien-Jen Ye, attended the AmCham Taiwan's 2026 Taiwan White Paper release event today and received the white paper. During his speech, Ye mentioned that companies considering investing in the US are highly concerned about the Double Taxation Avoidance Agreement (ADTA) and expressed his hope that the legislation can be completed this year to deepen cooperation between both parties.

Ye pointed out that Taiwan and the US signed the Agreement on Reciprocal Trade (ART) earlier this year and established a high-tech supply chain cooperation mechanism in the Memorandum of Understanding (MOU), indicating that both parties are moving towards institutionalized cooperation. The National Development Council recently launched the "Enterprise Investment in the US Financing Guarantee Mechanism," with 15 public and private banks expressing their participation in the first phase to assist enterprises in investing in the US, which will help strengthen the Taiwan-US investment partnership.

Ye mentioned that Taiwanese enterprises have always been very concerned about the ADTA issue. Previously, the government led a delegation to the US and exchanged views with US officials on this matter. He hopes that AmCham Taiwan can continue to exert its influence and urge the US to expedite the legislation of the Double Taxation Avoidance Agreement to create mutually beneficial results for both countries.

Notably, AmCham Taiwan's white paper this year lists "Energy and Infrastructure Resilience" as a priority issue, mentioning that energy supply adequacy and grid resilience should be treated as national security issues.

Ye responded that energy resilience is not just a simple power supply issue but an important issue related to national security, industrial competitiveness, and economic resilience. The government has conducted a complete inventory of energy supply and ensured the overall stability of Taiwan's power supply before 2032. At the same time, it is promoting the second energy transition by developing diversified green energy, promoting deep energy saving, strengthening energy storage, and grid resilience through four pillars to build a self-sufficient, low-carbon, and stable power supply system for Taiwan.

Additionally, the white paper also lists "Strategic Cooperation in the Technology Sector" as a priority issue. Ye expressed that Taiwan has an irreplaceable development advantage in the global AI supply chain. Based on this, the government continues to deepen its layout. Ye explained that in addition to promoting "AI New Ten Major Construction Projects," the government is investing in the research and development of three key technologies: quantum technology, silicon photonics, and robotics, to help various industries actively introduce AI. The "Artificial Intelligence Basic Law" was passed earlier this year, and the "National Artificial Intelligence Strategy Special Committee" was established to coordinate and promote AI policies and matters nationwide. The goal is for Taiwan to advance from being an AI hardware manufacturer to becoming a provider of comprehensive AI solutions, offering reliable computing power and advanced technology to the world, and becoming an important international partner.

Regarding the forward-looking talent recruitment and retention policies that the chamber is concerned about, the National Development Council has proposed the "National Talent Competitiveness Leap Plan," promoting strategies and measures to recruit foreign professional talent in key industries, build a complete talent ecosystem, and expand the retention of foreign technical talent.

The National Development Council stated that the government attaches great importance to the annual white paper recommendations released by AmCham Taiwan. Some issues involve long-term policy direction planning or require inter-agency deliberation. The National Development Council will work closely with relevant agencies and the chamber to promote in-depth development in various fields between Taiwan and the US.