Bill > HR33

This bill establishes special tax rules for residents of Taiwan doing business in the United States, creating a comprehensive framework for reducing double taxation and providing tax relief. The bill has two main parts: the United States-Taiwan Expedited Double-Tax Relief Act and the United States-Taiwan Tax Agreement Authorization Act. Under the first part, the bill introduces new provisions to the Internal Revenue Code that significantly modify tax treatment for qualified Taiwanese residents, including reduced withholding rates on various types of income such as dividends, interest, and royalties (generally from 30% to 10-15%), exemptions for certain wages earned in the United States, and special rules for taxation of income connected to a U.S. permanent establishment. The bill defines a "qualified resident of Taiwan" with specific criteria, including being liable to tax in Taiwan, not being a U.S. person, and meeting certain ownership and income requirements for corporate entities. The second part of the bill authorizes the President to negotiate a formal tax agreement with Taiwan, requiring congressional consultation and approval, and establishing a process for reviewing and implementing such an agreement. The legislation aims to provide tax relief and facilitate economic cooperation between the United States and Taiwan, recognizing the unique diplomatic circumstances that prevent a traditional tax treaty from being established.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/33/all-info