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Business / Economy

Mainland, Taiwan sign agreements on flight safety, taxation

(Xinhua) Updated: 2015-08-26 09:20

FUZHOU - Chinese mainland and Taiwan negotiators signed two agreements concerning cross-Straits flight safety and taxation cooperation on Tuesday.

The agreements were signed by the mainland-based Association for Relations Across the Taiwan Straits (ARATS) President Chen Deming and Taiwan-based Straits Exchange Foundation (SEF) Chairman Lin Join-sane during their talks in Fuzhou city.

The civil aviation agreement covered licensing for civil aviation organizations, products and personnel as well as flight standards and airworthiness certification. The two sides agreed to set up a reporting system and mechanism to coordinate responses to accidents and emergencies.

Based on this agreement, the negotiators discussed cooperation for investigating and handling civil air accidents.

The tax agreement outlined rules for income from cross-Straits economic exchanges. It also covered favorable tax rates for such activities and strategies to avoid double taxation.

The two sides also agreed to establish a system that would avoid discriminatory taxation.

According to Chen, the civil aviation agreement will make flying safer, reduce civil aviation costs and deepen cross-Straits exchanges in this industry, while the tax deal will reduce costs for enterprises and individuals and encourage cross-Straits direct investments.

ARATS Executive Vice President Zheng Lizhong said at a press conference after the agreements signing that a major feature of the taxation agreement is reciprocal arrangements for both sides to create a more stable, transparent and competitive environment for investors.

The agreement will also provide more convenient and efficient taxation services, equal taxation treatment and more effective dispute remedies, Zheng said.

Taiwan's financial authority has estimated that the taxation agreement, once come into force, may save Taiwan businesses NT$3.9 billion ($120 million) in tax payments every year.

As for the civil aviation pact, Zheng said it is expected to expedite timely and necessary collaboration of the mainland and Taiwan in relevant fields to protect the personal and property safety for air passengers of the two sides.

Zhang Hongying, chief engineer of the Civil Aviation Administration, noted the agreement would help reduce costs.

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