According to a report published on the Taiwan government's website by the China Economic News Service, Stephen M. Young, Director of the Taipei Office of the AIT, has called on the government to accelerate talks with the two powers towards a tax treaty as concerns grow over the tax treatment of foreign businesses, with many having faced tax investigations.

Taiwan's government has recently begun taxing the commissions of foreign stock brokers and charging royalties on income made in Taiwan by foreign movie film suppliers. As the largest suppliers, American firms bear the brunt of this taxation, the report stated.

From 2009, Taiwan will begin to impose a 20% alternative minimum tax on incomes exceeding NT$1 million (US$30,000) earned by Taiwan residents from foreign sources. However, the Finance Ministry says that the double taxation of Taiwan income in the US, and visa versa, will be eliminated under the term of a tax treaty, provided that the US agrees to the exchange of information regarding individuals' income.

Tax treaty negotiations between Canada and Taiwan were aborted ten years ago following concerns in Taiwan that it would lead to the disclosure of private assets, according to the report.