The Ministry of Finance (MOF) states that the "Agreement between the Government of the Republic of China (Taiwan) and the Government of Tuvalu for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income" (hereinafter "this Agreement") was signed in Tuvalu on March 4, 2026 by the Minister of Foreign Affairs, Mr. Lin Chia-Lung, and the Tuvalu's Prime Minister, Mr. Feleti Penitala Teo. Taiwan and Tuvalu will notify each other in writing of the completion of the procedures necessary to implement this Agreement, and the date of entry into force of such Agreement will be the latter of the two notifications. This Agreement will apply to tax cases beginning on or after the first day of January of the year next following the year of entry into force of this Agreement.
The MOF points out that this Agreement, consisting of 29 articles, has been formulated with reference to the international model tax conventions. It was finalized after years of consultation and negotiation between the two governments, culminating in a consensus. Under the terms of this Agreement, the source state shall provide appropriate tax reductions or exemptions on various types of income derived by residents (including individuals and enterprises) of the other Contracting State to address double taxation or reduce their tax burdens. For instance, the withholding tax rates on dividends, interest, and royalties will be reduced to 10%. Furthermore, this Agreement provides mechanisms for dispute resolution and other forms of tax cooperation.
The MOF notes that Tuvalu is a diplomatic ally of Taiwan in the Pacific region. After this Agreement enters into force, it is expected to further strengthen bilateral ties, and promote trade, investment, talent cultivation and other exchanges between the two sides. The two countries could jointly advance regional development in the Asia-Pacific region. The MOF emphasizes that it will, based on the principles of reciprocity, continue to conclude Income Tax Agreements with countries sharing common goals so as to broaden Taiwan's tax treaty network as well as create a fair and stable tax environment.
Contact person: Ms. Yu- Hsuan Wang, Senior Executive Officer
Contact Number: +886-2-23228169