US House Passes Bill for Tax Relief Deal with Taiwan

The US House of Representatives approved the United States-Taiwan Expedited Double-Tax Relief Act aimed at reducing double taxation and offering tax exemptions for Taiwanese businesses and residents in the US. The bill passed with a 423-1 vote and now awaits Senate approval before reaching the President.

The U.S. House of Representatives has taken a significant step by passing the United States-Taiwan Expedited Double-Tax Relief Act with an overwhelming 423-1 vote. This legislation seeks to alleviate the financial burden of double taxation on Taiwanese businesses, residents, and employees in the United States, according to reports from the Central News Agency Taiwan and Focus Taiwan.

The bill primarily aims to amend existing tax laws, offering tax exemptions to qualifying Taiwanese residents and reducing withholding tax rates on income earned from dividends and interest in the U.S. The legislation would also empower the President to negotiate a tax agreement with Taiwan, further solidifying economic ties between the two nations.

Representative Judy Chu emphasized the challenges posed by existing tax regulations, which require businesses to pay taxes in both Taiwan and the U.S. on the same income, hindering business operations and investments. She highlighted the fact that Taiwan remains the only top 10 U.S. trading partner without a double tax agreement, an issue the new bill seeks to address.

The bill's advocate, Representative Jason Smith, underscored its importance for economic efficiency and strategic partnership. He pointed out that Taiwan, a key trading partner, lacks an income tax treaty with the U.S., unlike 66 other countries. The proposed legislation aims to bolster economic collaboration and stability by promoting investment and countering adverse external influences.

(With inputs from agencies.)