Taiwan's income tax treaty with Tuvalu entered into force on 11 June 2026 and will apply from 1 January 2027.
Taiwan’s Ministry of Finance has announced that the income tax treaty with Tuvalu entered into force on 11 June 2026.
The treaty was signed 4 March 2026. The treaty applies to Taiwan’s profit-seeking enterprise income tax, individual income tax, and income basic tax. On the Tuvalu side, it applies to income tax imposed under the laws of Tuvalu.
The treaty provides that a permanent establishment will be deemed constituted where an enterprise furnishes services in a Contracting Party through employees or other engaged personnel, if those activities continue for a period or periods aggregating more than 6 months within any 12-month period.
Under the treaty, withholding tax rates are set at 10% for dividends, 10% for interest, and 10% for royalties.
The treaty will apply from 1 January 2027.
