Taiwan signs double taxation pact with Tuvalu

Taipei, March 5 (CNA) Taiwan's government on Wednesday signed an agreement to avoid double taxation and donated funds to cover the maintenance costs of Tuvalu's first undersea cable, Foreign Minister Lin Chia-lung (林佳龍) said in a Facebook post.

Lin, who is currently visiting Tuvalu as a special envoy of President Lai Ching-te (賴清德), arrived in the Pacific ally early Wednesday local time.

Lin said he and his delegation were welcomed by senior Tuvaluan government officials upon arrival. Later in the day, he attended a state banquet hosted by Prime Minister Feleti Teo.

During the banquet, both parties signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, which is expected to boost trade and encourage Taiwanese investment in Tuvalu, according to Lin.

He also donated funds to cover the maintenance costs for Tuvalu's first undersea cable, "Vaka," to help ensure the country's communications resilience. The foreign minister did not disclose the amount donated by the Taiwan government, however.

Lin also thanked Tuvalu for its long-standing support for Taiwan's participation in the international community.

The minister said the ongoing visit marks his third trip to the Pacific ally and the first time he has spent the night in the country.

Lin and his ministry did not say when he would be heading back to Taiwan.

According to a Tuvaluan media report, Lin and his delegation will continue their trip in Tuvalu on Thursday local time before departing for Taipei later that day.