Taipei, Dec. 3 (CNA) Taiwan and Thailand on Friday signed an agreement on the avoidance of double taxation and the prevention of income tax evasion.

The agreement was signed in Taipei by Henry Chen, Taiwan's representative to Thailand, and Kriangsak Kittichaisaree, executive director of the Thailand Trade and Economic Office in the city.

Taiwan's Minister of Finance Chang Sheng-ford was also present at the signing ceremony.

The agreement was first signed between both sides on July 9, 1999. However, the government of Thailand failed to pass it and sign it into law.

The amended version of the agreement was finally passed in June this year at a meeting of Thailand's Cabinet.

The agreement will become effective in the near future after both sides exchange official letters, according to officials.

Companies and individual conducting businesses in both countries can choose to file taxes in either country to avoid double taxation.

Taiwan is Thailand's fifth largest investor. Currently, there are about 150,000 Taiwanese conducting businesses in Thailand, according to official data.

(By Namita Lin and Ann Chen)
ENDITEM/npw