A bipartisan group of U.S. senators introduced a bill that seeks to authorize the president to negotiate a tax agreement with Taiwan to provide broader bilateral tax relief.
The senate bill is companion legislation to H.R. 33, which passed the U.S. House of Representatives by a vote of 423-1 on January 15th. It was introduced by Sens. Mike Crapo (R-ID), chair of the Senate Finance Committee and Ron Wyden (D-OR), ranking member on the committee. Other sponsors include Sens. Jim Risch (R-ID), chair of the Senate Foreign Relations Committee, and Jeanne Shaheen (D-NH), ranking member on that committee.
The bill is designed to provide expedited double-tax relief on U.S.-Taiwan cross-border investment.
“Taiwan’s unique status requires a unique tax solution,” Crapo and Wyden said. “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 Finance Committee has expressed unanimous support for this effort in the past, and today’s introduction in the Senate demonstrates a bipartisan commitment to bolster our relationship with a key economic and strategic partner. We will continue our efforts to get this important measure enacted into law as soon as possible.”
The legislation incorporates provisions of the U.S.-Taiwan Expedited Double-Tax Relief Act and the U.S.-Taiwan Tax Agreement Authorization Act, which both the Senate Finance and Foreign Relations committees each passed in the 118th Congress.
“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,” Risch and Shaheen said. “This legislation will reduce unnecessary double taxation on our companies, spur American economic prosperity and innovation in technologies of the future and deepen our economic relationship with Taiwan. We are grateful to our colleagues for supporting this commonsense legislation.”