Senate Foreign Relations Committee approves bill authorizing Taiwan tax agreement
Legislation authorizing the Biden Administration to negotiate and conclude a tax agreement between the United States and Taiwan
Senate Foreign Relations Committee passes discussion draft of bipartisan bill
The Senate Foreign Relations Committee on July 13, 2023, passed the Taiwan Tax Agreement Act of 2023—bipartisan legislation authorizing the Biden Administration to negotiate and conclude a tax agreement between the United States and Taiwan. Any agreement made with Taiwan would have to be approved by Congress.
According to a Foreign Relations Committee release, the bill would facilitate investment between the United States and Taiwan in key strategic industries such as semiconductors to help businesses avoid double taxation, while also protecting against tax evasion. The United States and Taiwan cannot enter into a “tax treaty,” but the bill lays the groundwork for an agreement with the key features of a tax treaty.
Read the bill text [PDF 32 KB]
KPMG observation
The chairmen and ranking members of the tax-writing committees of the U.S. Congress yesterday released a discussion draft of separate legislation to provide relief from double-taxation for workers and businesses engaged in U.S.-Taiwan cross-border investment. Read TaxNewsFlash
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