United States 鈥� U.S-Taiwan Double-Tax Mitigation Bill Moves Forward

On November 30, 2023, the U.S. House Committee on Ways and Means approved the聽United States-Taiwan Expedited Double-Tax Relief Act.1

As reported in聽GMS Flash Alert听2023-183聽(September 21, 2023), the bill, which has bipartisan support, would address the double taxation of American and Taiwanese tax residents. 聽The bill includes provisions that address permanent establishment, income from employment, and residency issues.

If passed and signed into law, Taiwan would need to enact reciprocal legislation for the bill鈥檚 measures to take effect.

乐鱼（Leyu）体育官网 is planning on releasing a detailed report of this proposal.

Why this matters

While this bill does not constitute a full-fledged, traditional convention between the U.S. and Taiwan with respect to taxes on income and capital, it does aim to foster cross-border commerce and mitigate double taxation faced by cross-border businesses, investors, and workers.聽

More Information on the Legislation

The staff of the Joint Committee on Taxation released a description of the chairman鈥檚 mark of the act () and a description of the chairman鈥檚 modification to the chairman鈥檚 mark ().听

乐鱼（Leyu）体育官网 Insights

乐鱼（Leyu）体育官网 LLP (U.S.) is following the legislative process of the 鈥淯nited States-Taiwan Expedited Double-Tax Relief Act鈥� and will be providing further updates as necessary.聽聽As noted above, 乐鱼（Leyu）体育官网 will be providing further analysis as to how this bill may impact global mobility programs should it pass Congress and be signed into law.

Footnotes

1聽 Read the description of the chairman鈥檚 amendment prepared by the JCT dated November 29, 2023: . Read the description the U.S.-Taiwan Expedited Double-Tax Relief Act prepared by JCT dated November 28, 2023:

For a related report, see "Legislative update: House Ways and Means approves Taiwan double-tax relief bill" in TaxNewsFlash (November 30, 2023), a publication of 乐鱼（Leyu）体育官网 LLP in the United States at: /us/en/home/insights/2023/11/tnf-house-ways-means-approves-taiwan-double-tax-relief-bill.htmlopens in a new tab.

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