WASHINGTON – U.S. Senators Bob Menendez (D-N.J.) and Jim Risch (R-Idaho), Chairman and Ranking Member of the Senate Foreign Relations Committee, in addition to 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, today joined in unveiling the Taiwan Tax Agreement Act of 2023, bipartisan legislation to authorize the Biden administration to negotiate and conclude a tax agreement with Taiwan. Similar to a tax treaty, this agreement would play a key role in facilitating investment between the United States and Taiwan, including in key strategic industries such as semiconductors, by making it easier for businesses in the U.S. and Taiwan to avoid double taxation while protecting against tax evasion.
“I am immensely pleased to introduce our bipartisan legislation to authorize the negotiation and conclusion of a tax agreement between the United States and Taiwan, and to provide for broader economic ties between our people,” Chairman Menendez said. “As an important economic player in the Indo-Pacific with whom we share our most fundamental values and interests, Taiwan’s robust engagement in global markets—and with the United States—is crucial to supply chain resiliency and Americans’ future economic security. In the face of mounting coercive tactics by Beijing to thwart Taiwan’s international economic engagement, this effort to facilitate U.S.-Taiwan economic relations is more crucial than ever, and I look forward to working with my colleagues on both sides of the aisle to secure its ultimate passage.”
“Taiwan is one of the world’s largest economies and an important trade and investment partner of the United States. 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. “This bill provides a meaningful process for moving a tax agreement with Taiwan forward. A strong economic relationship has long been in U.S. interests, but bolstering that relationship as Taiwan faces growing aggression and coercion by China is even more critical now.”
“The United States has a strong economic partnership with Taiwan, but right now Taiwanese and U.S. businesses are double-taxed – the result of an outdated policy that’s hampering opportunities for further cooperation and investment. That’s why I’ve been pushing for a formal joint tax agreement to address this gap in our trade policy, and I’m glad to join this bipartisan effort to build more momentum for a deal that better reflects the deep ties between the U.S. and Taiwan,” said Senator Van Hollen.
“Taiwan has long been a trusted partner of the United States,” Senator Romney said. “By authorizing the Administration to negotiate this tax agreement, our legislation will help ensure that U.S. tax policies reflect our commitment to our relationship with Taiwan. The rising threat of China makes it important that we continue to strengthen the economic ties between our two countries.”
Find a copy of the bill text HERE.