U.S.-Taiwan Double Taxation Relief Legislation (H.R.33 & S.199)
The U.S. and Taiwan share deep and expanding financial and trade ties, advancing American interests and creating economic opportunities and jobs across the United States. In 2024, Taiwan ranked as the U.S.’s seventh-largest trading partner, while the U.S. remained Taiwan’s second-largest trading partner.
Despite this strong economic relationship, Taiwan remains the only top-ten U.S. trading partner without a bilateral tax agreement. The current double taxation scheme imposes financial burdens and higher tax rates on American and Taiwanese workers and businesses operating across our borders, discouraging investment and trade between the two countries.
To address these issues, the “United States-Taiwan Expedited Double-Tax Relief Act” (incorporated into H.R.33 & S.199) would create a new tax code section with special rules to relieve double taxation on U.S.-Taiwan cross-border investment. It would also offer substantial tax benefits, such as reduced withholding taxes, to qualified residents of Taiwan with income from U.S. sources.
This legislation also includes the “United States-Taiwan Tax Agreement Authorization Act,” which grants the U.S. President authority to negotiate and enter into a tax agreement with Taiwan. This agreement would include provisions typically found in U.S. tax treaties, allowing residents of foreign countries to benefit from reduced tax rates or tax exemptions on certain U.S.-sourced income.
Relieving double taxation and providing treaty-like tax benefits will support American and Taiwanese workers and businesses operating in each other’s countries, while strengthening U.S.-Taiwan trade and economic ties. Eliminating double-tax disincentives will also encourage greater Taiwanese investment in the U.S., which is especially critical as we revitalize semiconductor manufacturing in the United States.
The U.S. House of Representatives approved a rules package for the 119th Congress to fast-track twelve priority bills, including H.R.33. The bill was passed by the House on January 15, 2025, with an overwhelming 423-1 vote. The Senate should follow suit and swiftly pass this vital legislation.
We urge you to sign the petition calling on your Senators to support S.199.
Please sign the petition on FAPA’s website here: https://fapa.org/u-s-taiwan-double-taxation-relief-legislation-s-199/