MOF raises con­tri­bu­tion to the AIIB to NT$11 bil.

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

If Tai­wan is ac­cepted into the Asian In­fra­struc­ture In­vest­ment Bank (AIIB), its con­tri­bu­tion could be five times the orig­i­nal es­ti­mate of NT$2.2 bil­lion, the Fi­nance Min­istry ( ) said yes­ter­day.

Fi­nance Min­is­ter Chang Sheng­ford ( ) said early in April that Tai­wan should ex­pect to in­vest around NT$2.2 bil­lion in the Bei­jing-led AIIB, which aims to fund ma­jor in­fra­struc­ture projects.

In a press con­fer­ence yes­ter­day, Chang re­vised his es­ti­mate for Tai­wan’s con­tri­bu­tion to NT$11 bil­lion.

The Fi­nance Min­istry had ini­tially pro­jected NT$2.2 bil­lion as Tai­wan’s cap­i­tal in­jec­tion based on what the bank re­port­edly ex­pected from South Korea, Chang said. The AIIB de­ter­mines each coun­try’s pledge based on its gross do­mes­tic prod­uct (GDP).

Ac­cord­ing to the lat­est ne­go­ti­a­tions among found­ing mem­bers, 25 per­cent of the AIIB’s vot­ing shares are to go to non-Asian mem­bers, while Asian mem­bers are set to con­trol the re­main­ing 75-per­cent stake. Un­der this struc­tur­ing of vot­ing rights, South Korea’s con­tri­bu­tion is ex­pected to change as well, he said.

News by Year’s End

Chang said yes­ter­day that Tai­wan can ex­pect a de­ci­sion on its ap­pli­ca­tion for or­di­nary membership by year’s end at the ear­li­est. The AIIB aims to start op­er­a­tions by the end of the year, af­ter mem­bers form and sign their char­ter in late June. Once the terms come into ef­fect, the mul­ti­lat­eral lend­ing bank will begin to ac­cept ap­pli­ca­tions from new mem­bers.

Prop­erty Tax Task Force

Opens Tues­day

Chang was speak­ing at a meet­ing for lo­cal press, dur­ing which he an­swered ques­tions on the Fi- nance Min­istry’s agenda in the rest of 2015.

The min­is­ter said the min­istry’s prop­erty re­form task force will open its first meet­ing next Tues­day to han­dle the Leg­isla­tive Yuan’s freshly rat­i­fied prop­erty tax.

In the sec­ond half of the year, the Fi­nance Min­istry will pri­or­i­tize prepa­ra­tions for the new in­te­grated house and land tax, which comes into ef­fect next Jan. 1, he said.

Tasks

in­clude updating com- puter sys­tems, as well as train­ing tax staff and mem­bers of the realestate in­dus­try. Ear­lier June, the Leg­is­la­ture ap­proved amend­ments to the In­come Tax Act ( ) that com­bine Tai­wan’s pre­vi­ously sep­a­rated taxes on house and land sales.

Cross-Strait Tax Pact Near­ing Com­ple­tion

Chang said a sec­ond task for the Fi­nance Min­istry will be work on the long-de­layed cross-strait tax­a­tion agree­ment ( ), po­ten­tially to­ward sign­ing the pact this year.

Talks have been be­set by de­lays but are near­ing com­ple­tion, Chang said, adding that the spe­cific timeline is at the dis­cre­tion of the Main­land Af­fairs Coun­cil ( ).

The treaty is aimed at sparing cross-strait busi­ness in­ter­ests from dou­ble tax­a­tion and could grant Tai­wanese busi­ness in­ter­ests “rea­son­able” ex­emp­tions and tax re­duc­tions, Chang said.

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