By Lery Hiciano / Staff writer, with CNA
The Lithuanian government on Wednesday passed a draft law on avoiding double taxation and preventing tax evasion with Taiwan, the Lithuanian Ministry of Finance said.
In August, the Lithuanian Trade Representative Office in Taipei and the Taiwan Representative Office in Lithuania signed an agreement to avoid double taxation on income and capital gains between the two countries.
The agreement is intended to ensure a fairer tax system and improve the competitiveness of bilateral trade between the two countries on the international market.
Photo: I-Hwa Cheng, AFP
The agreement is in line with the government’s goal of strengthening cooperation with Taiwan and proposing solutions that would give Lithuanian companies opportunities to expand, outgoing Lithuanian Minister of Finance Gintare Skaiste said.
The decision to exempt Lithuanian businesses from double taxation would promote broader bilateral cooperation and allow them to realize their ambitious goals, Skaiste said, adding that she hoped the next government would continue the policy.
Lithuania has signed double taxation agreements with 58 countries, including Taiwan.
Separately, Lithuanian Minister of National Defense Dovile Sakaliene on Wednesday said that the US shouldering the large proportion of Western defense spending is unfair to Washington and that Europe needs to step up and bolster its defense industries to deter Russia and China.
The pragmatic argument for the US to stay involved in Europe is that it needs European support in its confrontation with China, and if Europe “is hurt by Russia,” that would lead to bad consequences for the US, Sakaliene said in an interview with Reuters in New York.
“I’m very realistic, and I understand that Europe is not even in the top three of the priorities of the United States. Priority No. 1 is the United States. And then it’s Taiwan, and then it’s Israel, and then Europe,” she said. “The war in Taiwan is coming, I think it’s clear to all of us.”
Additional reporting by Reuters