Ref: CS-TAX-2025-001
Verified: July 08, 2026
Financial Strategic Directive: Unlocking Trapped Corporate Cash through Cross-Strait Tax Exemption
Executive Liquidity Summary
"This directive proposes a financial strategy to address the trapped corporate cash phenomenon by implementing mutual business tax exemption on direct cross-strait flights. The approach aims to eliminate double taxation, lower operational costs for shipping and aviation enterprises, and boost the competitiveness of cross-strait transport services. The expected outcomes include improved cash flow, increased cross-border investments, and stronger economic ties between the two regions."
The global nature of corporate cash is theoretically boundless, yet in practice, it remains trapped by fragmented tax regimes and regulatory barriers. This directive addresses the specific challenge of trapped cash in the cross-strait context by leveraging the 'Wisdom Governance' principle: mutual exemption of business tax on direct cross-strait flights. By eliminating double taxation, shipping and aviation enterprises can reduce cross-border operational costs, thereby enhancing the competitiveness of transport services between the two sides. This strategic move not only unlocks trapped cash but also fosters economic integration and operational efficiency.