The US Senate Committee on Finance on Thursday passed the US-Taiwan Expedited Double Tax Relief Act, with US officials saying that it would ease pressure on investors and boost the partnership between Taipei and Washington, although Taiwan needs to enact reciprocal legislation for it to take effect.
The bill — which was developed by US senators Ron Wyden, the committee’s chairman, and ranking member Mike Crapo, along with US representatives Jason Smith, chairman of the US House of Representatives Committee on Ways and Means, and ranking member Richard Neal — was passed in a 27-0 vote.
The proposal had momentum because of a bipartisan consensus among senators that the US’ economic partnership with Taiwan be strengthened, Wyden said during the markup hearing of the legislation, calling Taiwan “a critical trading partner.”
Photo: Reuters
The legislation is a part of US efforts in “supercharging chipmaking here in America,” which should not be hindered by a lack of double-tax relief, he said.
“Our unique relationship with Taiwan requires a unique approach to double-tax relief as well,” he said. “It is novel, but more importantly, it is fast.”
“There is no time to waste,” Wyden said, adding that amending the tax code to include double-tax relief means that US workers and businesses might enjoy its benefits in “months, not years” if things go well.
He called on the US Congress to help stabilize the Indo-Pacific region and prevent conflicts as China’s military threats against Taiwan also affect the US and its allies.
“Building up our economic relationship with Taiwan is a crucial component of this work,” Crapo said. “Without question, deepening ties with Taiwan and its vibrant democracy is in our nation’s best interests.”
Under the legislation, residents of Taiwan for tax purposes who work in the US would have six months before their wages were subject to US income tax rules, which would encourage more investment in US operations, he said.
The legislation would exempt people who have residency in Taiwan and the US from double taxation, Crapo said.
The items in the bill are subject to a reciprocity clause, which means that the benefits are conditional upon Taiwan providing reciprocal benefits to US-based companies and individuals investing and working in Taiwan, he said.
US Senator Robert Menendez, chairman of the Senate Foreign Relations Committee, offered his support for the bill, but said: “I have deep concerns that this legislation alone is insufficient.”
Despite being unable to sign a treaty with Taiwan due to a lack of official diplomatic ties, the US should reach a tax agreement with Taiwan, Menendez said.
His committee in July passed the Taiwan Tax Agreement Act, authorizing the US government to negotiate and enter an income tax agreement with Taiwan, Menendez said, adding that he hoped to find a compromise to move both bills forward jointly.
Some opposed the approach of entering into a tax agreement with Taiwan, saying that “allowing a less formal agreement to override the tax code — rather than using legislation or a treaty — would create a new, problematic precedent for making tax law,” the Washington-based Roll Call newspaper reported.
Representative to the US Hsiao Bi-khim (蕭美琴) thanked the finance committee for passing the bill, which she said was “an important milestone moving towards relief in double taxation, with the reciprocal goal of incentivizing more two-way investments and deeper Taiwan-US economic ties.”
CALL FOR SUPPORT: President William Lai called on lawmakers across party lines to ensure the livelihood of Taiwanese and that national security is protected President William Lai (賴清德) yesterday called for bipartisan support for Taiwan’s investment in self-defense capabilities at the christening and launch of two coast guard vessels at CSBC Corp, Taiwan’s (台灣國際造船) shipyard in Kaohsiung. The Taipei (台北) is the fourth and final ship of the Chiayi-class offshore patrol vessels, and the Siraya (西拉雅) is the Coast Guard Administration’s (CGA) first-ever ocean patrol vessel, the government said. The Taipei is the fourth and final ship of the Chiayi-class offshore patrol vessels with a displacement of about 4,000 tonnes, Lai said. This ship class was ordered as a result of former president Tsai Ing-wen’s (蔡英文) 2018
‘SECRETS’: While saying China would not attack during his presidency, Donald Trump declined to say how Washington would respond if Beijing were to take military action US President Donald Trump said that China would not take military action against Taiwan while he is president, as the Chinese leaders “know the consequences.” Trump made the statement during an interview on CBS’ 60 Minutes program that aired on Sunday, a few days after his meeting with Chinese President Xi Jinping (習近平) in South Korea. “He [Xi] has openly said, and his people have openly said at meetings, ‘we would never do anything while President Trump is president,’ because they know the consequences,” Trump said in the interview. However, he repeatedly declined to say exactly how Washington would respond in
WARFARE: All sectors of society should recognize, unite, and collectively resist and condemn Beijing’s cross-border suppression, MAC Minister Chiu Chui-cheng said The number of Taiwanese detained because of legal affairs by Chinese authorities has tripled this year, as Beijing intensified its intimidation and division of Taiwanese by combining lawfare and cognitive warfare, the Mainland Affairs Council (MAC) said yesterday. MAC Minister Chiu Chui-cheng (邱垂正) made the statement in response to questions by Democratic Progressive Party (DPP) Legislator Puma Shen (沈柏洋) about the government’s response to counter Chinese public opinion warfare, lawfare and psychological warfare. Shen said he is also being investigated by China for promoting “Taiwanese independence.” He was referring to a report published on Tuesday last week by China’s state-run Xinhua news agency,
‘ADDITIONAL CONDITION’: Taiwan will work with like-minded countries to protect its right to participate in next year’s meeting, the foreign ministry said The US will “continue to press China for security arrangements and protocols that safeguard all participants when attending APEC meetings in China,” a US Department of State spokesperson said yesterday, after Beijing suggested that members must adhere to its “one China principle” to participate. “The United States insists on the full and equal participation of all APEC member economies — including Taiwan — consistent with APEC’s guidelines, rules and established practice, as affirmed by China in its offer to host in 2026,” the unnamed spokesperson said in response to media queries about China putting a “one China” principle condition on Taiwan’s
RSS