ISTANBUL

The US and Taiwan will start negotiating a comprehensive tax agreement to address double taxation, the US Treasury Department announced Tuesday.

A comprehensive tax agreement is expected to provide critical benefits for both countries, particularly to support President Joe Biden's CHIPS and Science Act, which aims to strengthen the resilience of the semiconductor supply chain, create jobs and incentivize investments in semiconductor manufacturing facilities across the US, it said in a statement.

"It will reduce double taxation barriers for further investment by Taiwan into the United States, and vice versa, particularly for the small and medium-sized enterprises that are crucial to a complete semiconductor ecosystem," it said.

The first round of negotiations is expected to take place in the coming weeks, said the Treasury Department.