U.S. Senate Foreign Relations Committee Ranking Member Jeanne Shaheen and Chair Jim Risch, alongside U.S. Senate Finance Committee Chair Mike Crapo and Ranking Member Ron Wyden, have put forth new legislation aimed at providing expedited double-tax relief for U.S.-Taiwan cross-border investments. This bill also seeks to empower the President to negotiate a tax agreement with Taiwan that would extend broader bilateral tax relief.
This newly introduced legislation complements H.R. 33, which recently passed in the U.S. House of Representatives with overwhelming support, receiving a vote of 423-1 on January 15th.
Shaheen and Risch stated, “Taiwan is a close friend and partner of the United States as we look to support regional stability and secure supply chains that are critical for the American economy.” They further emphasized that this legislative effort will reduce unnecessary double taxation, promote American economic growth and innovation in future technologies, while strengthening economic ties with Taiwan.
Crapo and Wyden remarked on Taiwan’s distinct position necessitating a unique tax solution: “This legislation strengthens the economic partnership between the U.S. and Taiwan by delivering treaty-like tax benefits for American and Taiwanese workers and businesses operating across our borders.” The bipartisan commitment is underscored by unanimous support from the Finance Committee in previous sessions, highlighting efforts to enact this measure into law promptly.
The bill incorporates elements from both the U.S.-Taiwan Expedited Double-Tax Relief Act and the U.S.-Taiwan Tax Agreement Authorization Act previously passed by respective committees in Congress.
The full text of today’s introduced U.S-Taiwan tax legislation (S. 199) can be accessed online.
