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Taiwan's Reduced 17% Corporate Tax Rate

June 2010
Taiwan's parliment approved on May 28, 2010 a new reduced 17% corporate income tax rate, compared to the previous 20% rate.The amendment takes retroactive effect from 1.1.2010.
The present cut follows a previous cut, about a year ago, from 25% to 20%.


Taiwan Israel Double Taxation Treaty

February 2010
The double tax treaty between the two countries which was signed on 24/12/09 entered into force on January 1, 2010.
The double taxation treaty which is based on the OECD model includes, inter-alia ,maximum tax rates on certain income.
The maximum tax rate for dividends is 10%, 10% for interest (7% for interest paid to banks ) and 10% for royalties.
The protocol includes a MFN, Most Favorable Nation directive. According to the MFN directive if Taiwan signs a new tax treaty with any OECD country, imposing a lower rate than 10% on dividends and royalties, the new lower rate would be effective to Taiwan Israel tax treaty too.







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