# Taiwan Tax Agreement Act of 2023

This bill establishes a tax agreement between the United States and Taiwan. Essentially, it's a deal that clarifies how taxes work when American companies do business in Taiwan and when Taiwanese companies do business in America, so that neither country taxes the same income twice.

Right now, without a formal agreement, American workers and businesses operating in Taiwan might face taxes from both countries on the same earnings. The same problem happens for Taiwanese entities working here. This bill creates rules that say: if you've already paid taxes to one country, you don't have to pay the full amount again in the other country. It's designed to make it easier and cheaper for companies and individuals to do business across both countries by eliminating this "double taxation" problem.

The practical effect is that American companies with operations in Taiwan will likely find it more affordable to do business there, and vice versa. This could make trade between the two countries smoother and potentially create more business opportunities. For individual workers or small business owners dealing with both countries, it means clearer rules about which taxes they owe and where. The agreement would cover things like income taxes, and it establishes procedures for resolving disputes if the two countries disagree about how much someone owes.

Taiwan Tax Agreement Act of 2023

Menendez, Robert

Taiwan Tax Agreement Act of 2023 This bill authorizes the United States to enter into a tax agreement with Taiwan. Specifically, the President may, through the American Institute in Taiwan (AIT), negotiate and enter into a tax agreement with the Taipei Economic and Cultural Representative Office (TECRO). (The U.S.-Taiwan relationship is unofficial; TECRO is Taiwan's principal representative office in the United States, while the AIT, a private corporation, performs many of the same functions as U.S. embassies elsewhere.) The agreement must address issues including (1) the taxation of tax residents of Taiwan, the United States, or both; (2) relief from double taxation; and (3) protection against tax evasion or avoidance. The agreement must conform with the 2016 U.S. Model Income Tax Convention and other customary U.S. bilateral income tax convention terms. The bill requires the President to notify Congress 15 days before negotiations begin and provide periodic reports. The Department of the Treasury must brief Congress upon request and provide timely updates during the course of negotiations. The negotiated agreement may only take legal effect upon submission of the agreement to Congress and the approval of a concurrent resolution in a form prescribed by the bill. The agreement, once in force, must be afforded the same treatment as a treaty under U.S. law.