Bill > S199

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 consists of 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 creates new provisions in the Internal Revenue Code that significantly reduce withholding tax rates for Taiwanese residents, lowering standard rates from 30% to 10-15% depending on the type of income. For example, dividends from publicly traded stocks would be taxed at lower rates, and certain wages earned by Taiwanese workers in the US would be exempt from taxation. The bill also defines detailed criteria for who qualifies as a "qualified resident of Taiwan," including specific ownership and income requirements for corporations. The second part of the bill authorizes the President to negotiate a formal tax agreement with Taiwan, requiring extensive congressional consultation and oversight, and mandating that any agreement conform to existing US tax treaty models. The legislation recognizes Taiwan's unique diplomatic status, which prevents a traditional tax treaty, and seeks to provide reciprocal tax benefits through this alternative approach. Ultimately, the bill aims to facilitate economic cooperation and reduce tax barriers for businesses and individuals from Taiwan operating in the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/199/all-info