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