Taiwan Tax Agreement Act of 2023

Taiwan Tax Agreement Act of 2023

This bill authorizes the United States to enter into a tax agreement with Taiwan.

Specifically, the President may, through the American Institute in Taiwan (AIT), negotiate and enter into a tax agreement with the Taipei Economic and Cultural Representative Office (TECRO). (The U.S.-Taiwan relationship is unofficial; TECRO is Taiwan's principal representative office in the United States, while the AIT, a private corporation, performs many of the same functions as U.S. embassies elsewhere.)

The agreement must address issues including (1) the taxation of tax residents of Taiwan, the United States, or both; (2) relief from double taxation; and (3) protection against tax evasion or avoidance. The agreement must conform with the 2016 U.S. Model Income Tax Convention and other customary U.S. bilateral income tax convention terms.

The bill requires the President to notify Congress 15 days before negotiations begin and provide periodic briefings. The Department of the Treasury must brief Congress upon request and provide timely updates during the course of negotiations.

The negotiated agreement may only take legal effect upon submission of the agreement to Congress and the approval of a concurrent resolution in a form prescribed by the bill. The agreement, once in force, must be afforded the same treatment as a treaty under U.S. law.

Bill 118 HR 4729, also known as the Taiwan Tax Agreement Act of 2023, is a piece of legislation introduced in the US Congress. The purpose of this bill is to establish a tax agreement between the United States and Taiwan. This agreement aims to promote economic cooperation and prevent double taxation for individuals and businesses operating in both countries.

The Taiwan Tax Agreement Act of 2023 outlines the specific terms and conditions of the tax agreement, including provisions for the exchange of tax information between the two countries, the treatment of income earned by residents of one country in the other country, and the resolution of any disputes that may arise regarding tax matters.

The bill also includes provisions for the implementation and enforcement of the tax agreement, as well as mechanisms for regular review and updates to ensure its effectiveness. Additionally, the Taiwan Tax Agreement Act of 2023 includes measures to promote transparency and accountability in tax matters between the United States and Taiwan. Overall, the Taiwan Tax Agreement Act of 2023 is aimed at strengthening the economic relationship between the United States and Taiwan by providing a framework for fair and efficient tax treatment for individuals and businesses operating in both countries.