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US-Taiwan Tax Relief: Lower Withholding Rates and Double Taxation Avoidance.

This Act establishes temporary, expedited tax relief measures for qualified residents of Taiwan earning income in the US, aiming to prevent double taxation. It significantly reduces US withholding tax rates on interest, dividends, and royalties, and exempts certain wages and small incomes of entertainers from US taxation. These provisions are contingent upon Taiwan providing reciprocal tax benefits to US citizens and businesses, facilitating trade and investment.
Key points
US withholding tax on interest, dividends, and royalties for Taiwanese residents is reduced (generally from 30% to 10% or 15%).
Wages and salaries earned by qualified Taiwanese residents performing services in the US are generally exempt from US tax, provided the employer is non-US.
The branch profits tax rate for Taiwanese corporations operating in the US is lowered from 30% to 10%.
The law authorizes the President to negotiate a comprehensive, formal tax agreement with Taiwan, subject to subsequent Congressional approval.
article Official text account_balance Process page
VOTING RESULTS
2025-01-15
100%
For 423
Against 1
Abstain 0
Full voting results open_in_new
Passed House
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_33
Sponsor: Rep. Smith, Jason [R-MO-8]
Process start date: 2025-01-03
Voting date: 2025-01-15
Meeting no: 1
Voting no: 15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the United States.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_33.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-01-03.

What are the main provisions?

Key points include:

  • US withholding tax on interest, dividends, and royalties for Taiwanese residents is reduced (generally from 30% to 10% or 15%).
  • Wages and salaries earned by qualified Taiwanese residents performing services in the US are generally exempt from US tax, provided the employer is non-US.
  • The branch profits tax rate for Taiwanese corporations operating in the US is lowered from 30% to 10%.
  • The law authorizes the President to negotiate a comprehensive, formal tax agreement with Taiwan, subject to subsequent Congressional approval.
What is the specific legal status?

The current status is Passed House.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Where is the official voting record?

The official roll call vote is recorded at: voting record

Who is the primary sponsor?

The primary sponsor is Rep. Smith, Jason [R-MO-8].

What is the latest detailed status?

The latest detailed status is: On passage Passed by the Yeas and Nays: 423 - 1 (Roll no. 15). (text: CR H160-164)

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Taxes Economy