Bipartisan Taiwan Tax Agreement Act

A bipartisian group of senators has introduced the Taiwan Tax Agreement Act of 2023. The bipartisan legislation aims to authorize the Biden Administration to negotiate and conclude a tax agreement with Taiwan, similar to a tax treaty, to facilitate investment between the two nations and avoid double taxation.

Senators Jim Risch (R-Idaho) and Bob Menendez (D-N.J.), ranking member and chairman of the Senate Foreign Relations Committee, along with Senators Chris Van Hollen (D-Md.) and Mitt Romney (R-Utah), chairman and ranking member of the Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy introduced the bill May 4.

The proposed tax agreement would play a significant role in encouraging investment in strategic industries such as semiconductors while preventing tax evasion. "A U.S.-Taiwan tax agreement will help reduce unnecessary double taxation, help prevent tax evasion, and remove barriers to trade between us," said Ranking Member Risch.

Chairman Menendez emphasized the importance of this legislation, stating, "Taiwan's robust engagement in global markets—and with the United States—is crucial to supply chain resiliency and Americans' future economic security." He added that the effort to facilitate U.S.-Taiwan economic relations is more crucial than ever amid mounting coercion from Beijing.

Senator Van Hollen highlighted the need to address the outdated policy that hampers opportunities for further cooperation and investment. Senator Romney emphasized the importance of strengthening economic ties between the U.S. and Taiwan in light of China's growing threat.

The text of the legislation can be found [here].