For Immediate Release
Washington, D.C. – January 15, 2025
Contact: 202-600-6819
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FAPA Applauds the House’s Passage of the U.S.-Taiwan Expedited Double-Tax Relief Act
The Formosan Association for Public Affairs (FAPA) applauds the U.S. House of Representatives’ passage of the “United States-Taiwan Expedited Double-Tax Relief Act” (H.R.33) on January 15, 2025, with an overwhelming vote of 423-1. This bipartisan landmark legislation represents a pivotal step toward deepening the economic partnership between the U.S. and Taiwan by addressing the critical issue of double taxation.
Chair of the House Ways and Means Committee, Congressman Jason Smith (R-MO), remarked that this legislation will “unleash more American manufacturing investment and jobs and help combat China’s harmful influence.” “The bill before us establishes fair tax treatment for both American workers and businesses operating in Taiwan and puts Americans on equal footing with our competitors around the world. Enacting this legislation will help create jobs here at home. U.S. exports to Taiwan support 188,000 American jobs and Taiwanese investment in the United States supports another 21,000 [jobs]. Reducing burdens to Taiwanese investment in America will help aid in building new cutting-edge manufacturing plants staffed by American workers.”
Congressman Jake Auchincloss (D-MA) rose in support of H.R.33 during the hearing on the House floor and remarked, “The scope and severity of the threat from the Chinese Communist Party is crystallized in the Taiwan Strait, which is under constant harassment. The United States and Taiwan should help support each other’s democracies through collaboration on countering disinformation and propaganda. We should go further to strengthen one another’s economies through increased flows of trade and investment by negotiating expanded market access, common rules, and the end of this double taxation on Taiwanese investment in the United States, which is especially critical as we look to revive semiconductor manufacturing. As the United States seeks to strengthen our position in the Indo-Pacific, let us commit to Taiwan as a long-term ally.”
In 2024, Taiwan ranked as the United States’ seventh-largest trading partner, while the United States remained Taiwan’s second-largest trading partner. Despite this strong economic relationship, the existing double taxation scheme has unnecessarily hindered cross-border trade and investment.
Notably, among the United States’ top ten trading partners, Taiwan is the only country without a bilateral tax agreement with the U.S., leading to a significant disparity that subjects Taiwanese companies to higher tax rates than other foreign-invested corporations operating in the U.S. Similarly, American companies investing in Taiwan face challenges due to the lack of a formal Avoidance of Double Taxation Agreement (ADTA), creating uncertainty for their investments.
To address these issues, the U.S.-Taiwan Expedited Double-Tax Relief Act would create a new tax code section with special rules to relieve double taxation on U.S.-Taiwan cross-border investment and provide substantial tax benefits, such as reduced withholding taxes, to qualified residents of Taiwan with income from U.S. sources. This new tax code section will only come into effect once Taiwan provides the same reciprocal benefits to U.S. persons with income subject to tax in Taiwan.
This bill also includes the “United States-Taiwan Tax Agreement Authorization Act,” which grants the U.S. President authority to negotiate and enter into a U.S.-Taiwan tax agreement. This agreement would include provisions typically found in U.S. tax treaties, which allow residents of foreign countries to benefit from reduced tax rates and tax exemptions on certain U.S.-sourced income. The United States currently has bilateral tax treaties with over 60 countries.
FAPA President Dr. Su-Mei Kao states: “We commend the leadership of House Ways and Means Committee Chairman Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) for passing the U.S.-Taiwan Expedited Double-Tax Relief Act, a vital piece of legislation that FAPA has ardently championed. By relieving double taxation and providing critical tax benefits, this Act will bolster investment and trade between the U.S. and Taiwan while enhancing their economic partnership and global competitiveness.”
Dr. Kao emphasizes: “This legislation will also strengthen national security against China’s economic influence and coercion. We strongly urge the Senate to act swiftly in passing this critical bill and ensure it reaches the President’s desk for prompt enactment.”
FAPA 讚揚美國眾議院通過《美台雙重課稅快速減免法案》
台灣人公共事務會（FAPA）高度讚揚美國眾議院於2025年1月15日以壓倒性的423票對1票，順利通過《美台雙重課稅快速減免法案》（United States-Taiwan Expedited Double-Tax Relief Act）（H.R.33）。這項獲得兩黨廣泛支持的里程碑式立法，是美國新國會開議後眾議院優先通過的關鍵法案，標誌著解決美台雙重課稅問題及深化雙邊經貿夥伴關係上的重大突破。
美國聯邦眾議員歐清傑（Jake Auchincloss, D-MA）在表達對該法案的支持時於聽證會上指出：「中國共產黨帶來的威脅，其範圍與嚴重性在台灣海峽表現得尤為明顯，該地區正承受持續的騷擾。美國與台灣應攜手合作，打擊假資訊和不實政治宣傳，以共同守護彼此的民主。同時，我們應透過談判擴大市場准入、制定共同規則、以及消除台灣在美國投資的雙重課稅，以進一步鞏固雙方的經濟，這對於振興半導體製造業尤其重要。隨著美國致力於加強在印太地區的地位，讓我們承諾將台灣作為長期的盟友。」
美國眾議院歲計委員會主席史密斯（Jason Smith, R-MO）在表決前表示，此法案將「創造更多美國製造業投資與就業機會，並有助於抵禦中國的不利影響」。「我們面前的這項法案，為在台灣經營的美國工人和企業建立了公平的稅收待遇，並使美國人在全球競爭中與對手處於平等地位。頒布這項法案將有助於創造美國國內就業機會。美國對台灣的出口支持了18.8萬個美國就業機會，而台灣對美國的投資又支持了2.1萬個就業機會。減輕台灣在美國投資的負擔，將有助於建造由美國工人運營的新一代尖端製造廠。」
在2024年，台灣成為美國的第七大貿易夥伴，而美國則為台灣的第二大貿易夥伴。儘管美台經貿關係相當緊密，現行的雙重課稅體系仍不必要地阻礙了雙邊的跨境貿易與投資。
值得注意的是，在美國十大貿易夥伴中，台灣是唯一尚未與美國簽訂雙邊租稅協定的國家，這導致台灣企業在美國面臨的稅率遠高於其他外資企業。同樣地，美國企業在台灣投資時也因缺乏正式的「避免雙重課稅協定」而面臨投資的不確定性。
為了解決這些問題，《美台雙重課稅快速減免法案》將新增一個美國稅法章節，制定特別條款以減輕美台跨境投資中的雙重課稅負擔，並為符合條件且擁有美國來源所得的台灣居民提供賦稅優惠，例如降低預扣稅率。然而，該美國稅法的新章節，僅在台灣對在台擁有應稅收入的美國人士提供同等互惠的賦稅優惠後，方可生效。
此次眾議院通過的法案還包含《美台租稅協定授權法案》（United States-Taiwan Tax Agreement Authorization Act），授權美國總統與台灣展開談判並簽署美台租稅協定。該協定將納入美國稅務條約中常見的條款，例如為外國居民提供美國來源所得的稅率減免或稅收豁免等優惠。目前，美國已與超過60個國家簽訂了稅務條約。
FAPA會長林素梅博士表示：「我們讚揚美國眾議院歲計委員會主席史密斯（Jason Smith, R-MO）與民主黨籍首席議員尼爾（Richard Neal, D-MA）的卓越領導，成功推動《美台雙重課稅快速減免法案》的通過。這項重要立法也是FAPA長期以來積極倡議的關鍵友台法案。通過減免雙重課稅並提供關鍵賦稅優惠，該法案將有效促進美台間的投資和貿易，進一步鞏固雙方的經貿夥伴關係並提升其全球競爭力。」
林會長進一步強調：「這項法案還將強化美台的國家安全，抵禦來自中國的經濟影響與脅迫。我們強烈呼籲參議院迅速通過此重要法案，以確保其儘快送交美國總統簽署生效。」
