Neal, Wyden, Smith, and Crapo Release Discussion Draft of Bill Providing Relief for U.S. and Taiwanese Workers and Businesses from Double Taxation
Washington, D.C., July 12, 2023
House Ways & Means Committee Ranking Member Richard E. Neal (D-MA), Senate Finance Committee Chairman Ron Wyden (D-OR), House Ways & Means Committee Chairman Jason Smith (R-MO), and Senate Finance Committee Ranking Member Mike Crapo (R-ID) released a discussion draft of legislation to provide relief from double-taxation for workers and businesses engaged in U.S.-Taiwan cross-border investment. Among other benefits, the bill would significantly reduce withholding taxes on dividends, interest, and royalties paid on these cross-border investments, mitigate barriers for smaller businesses to make those investments, reduce complexity for dual residents, and unlock opportunity for deepening our economic cooperation with Taiwan.
“Today’s draft is an important step toward providing relief for American and Taiwanese workers and businesses that face burdens when operating across our borders,” the lawmakers said. “Given Taiwan’s very unique status precluding it from remedying double taxation through an income tax treaty, we remain committed to solutions that will unlock investment, create more jobs, and lead to greater shared prosperity. This legislation will provide much needed certainty for U.S. businesses investing in Taiwan, and vice-versa, while strengthening our economic partnership for decades to come.”
Comments on this discussion draft are requested by July 24 and can be sent to _internationalTax@finance.senate.gov.