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.”
Auckland rang in 2026 with a downtown fireworks display launched from New Zealand’s tallest structure, Sky Tower, making it the first major city to greet the new year at a celebration dampened by rain, while crowds in Taipei braved the elements to watch Taipei 101’s display. South Pacific countries are the first to bid farewell to 2025. Clocks struck midnight in Auckland, with a population of 1.7 million, 18 hours before the famous ball was to drop in New York’s Times Square. The five-minute display involved 3,500 fireworks launched from the 240m Sky Tower. Smaller community events were canceled across New Zealand’s
The Ministry of Foreign Affairs (MOFA) yesterday said it is closely monitoring developments in Venezuela, and would continue to cooperate with democratic allies and work together for regional and global security, stability, and prosperity. The remarks came after the US on Saturday launched a series of airstrikes in Venezuela and kidnapped Venezuelan President Nicolas Maduro, who was later flown to New York along with his wife. The pair face US charges related to drug trafficking and alleged cooperation with gangs designated as terrorist organizations. Maduro has denied the allegations. The ministry said that it is closely monitoring the political and economic situation
‘SLICING METHOD’: In the event of a blockade, the China Coast Guard would intercept Taiwanese ships while its navy would seek to deter foreign intervention China’s military drills around Taiwan this week signaled potential strategies to cut the nation off from energy supplies and foreign military assistance, a US think tank report said. The Chinese People’s Liberation Army (PLA) conducted what it called “Justice Mission 2025” exercises from Monday to Tuesday in five maritime zones and airspace around Taiwan, calling them a warning to “Taiwanese independence” forces. In a report released on Wednesday, the Institute for the Study of War said the exercises effectively simulated blocking shipping routes to major port cities, including Kaohsiung, Keelung and Hualien. Taiwan would be highly vulnerable under such a blockade, because it
UNRELENTING: China attempted cyberattacks on Taiwan’s critical infrastructure 2.63 million times per day last year, up from 1.23 million in 2023, the NSB said China’s cyberarmy has long engaged in cyberattacks against Taiwan’s critical infrastructure, employing diverse and evolving tactics, the National Security Bureau (NSB) said yesterday, adding that cyberattacks on critical energy infrastructure last year increased 10-fold compared with the previous year. The NSB yesterday released a report titled Analysis on China’s Cyber Threats to Taiwan’s Critical Infrastructure in 2025, outlining the number of cyberattacks, major tactics and hacker groups. Taiwan’s national intelligence community identified a large number of cybersecurity incidents last year, the bureau said in a statement. China’s cyberarmy last year launched an average of 2.63 million intrusion attempts per day targeting Taiwan’s critical
RSS