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Taiwan Tax Agreement Act of 2023
3/12/2024, 10:02 AM
Summary of Bill S 1457
The bill outlines the specific terms of the tax agreement, including provisions for the exchange of tax information between the two countries, as well as guidelines for resolving any disputes that may arise. It also sets out the procedures for implementing the agreement and ensuring compliance with its terms.
Overall, the Taiwan Tax Agreement Act of 2023 is designed to strengthen 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. It is an important step towards promoting trade and investment between the two nations while also ensuring that taxpayers are not unfairly burdened by double taxation.
Congressional Summary of S 1457
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 reports. 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.
