Integrity Legal

18th July 2011

It recently came to this blogger’s attention that China and the United Kingdom have apparently concluded a revision of those nations’ double tax treaty. To provide further insight into these events this blogger is compelled to quote directly from the website of Accountancy Age, AccountancyAge.com:

REVISIONS TO THE double taxation treaty between the UK and China will reduce the withholding tax on dividends received by UK investors from Chinese companies. The document revisions coincide with the visit of Chinese premier Wen Jiabao. They reduce the withholding tax on dividends paid out by Chinese companies to 5% from 10%. This will apply to people holding at least 25% shares in a Chinese company and the rate will remain at 10% for other dividends. There has also been a small change in the treatment of royalties, with some royalties being charged at 6%, down from 7%.

The administration of this web log asks readers to click on those relevant hyperlinks noted above to read about these developments in detail. As has been previously noted on this web log, as China becomes increasingly economically dominant it stands to reason that many nations around the world will try to engage in further trade and business with that country. International agreements and treaties can often act to streamline trade and investment. Hopefully, the developments above will provide benefits for all concerned.
In somewhat related news, it recently came to this blogger’s attention that authorities in Taiwan appear to be encouraging that interested parties remain patient with respect to the prospect of a trade agreement with the Association of Southeast Asian Nations (ASEAN). To quote directly from the website of Focus Taiwan, FocusTaiwan.tw:

Manila, July 16 (CNA) Taiwan’s Ministry of Economic Affairs is asking the country’s businesses to wait patiently for Taiwan to sign economic cooperation pacts with other Southeast Asian countries because Singapore and China are the trade negotiation priorities at present…There are over 8,000 items being discussed in follow-up negotiations with China, and substantive talks are also being held with Singapore, making it hard to give the necessary attention to the Association of Southeast Asian Nations, Shih said…The minister acknowledged, however, that ASEAN was an area with which Taiwan needed to forge a free trade agreement or economic cooperation agreement…

Readers are strongly encouraged to click upon the hyperlinks noted above to read the article in full.

As the ASEAN region continues to thrive economically there appears to be a growing yearning for ASEAN trade agreements from nations outside the region. This news comes shortly after the recent announcement that a sort of pan-ASEAN visa, similar to the Schengen Visa, will be one topic of discussion amongst ASEAN leaders. How any of these events will ultimately play out remains to be seen, but there are certainly those who would speculate that many of the topics noted above are positive developments.

For information pertaining to legal services in Southeast Asia please see: Legal.


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