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US-Taiwan Tax Relief: Lower Withholding Rates on Dividends and Interest.

This Act aims to quickly alleviate double taxation for Taiwan residents earning income in the US, thereby facilitating trade and investment between the two economies. It introduces reduced withholding tax rates (from 30% to 10% or 15%) on interest, dividends, and royalties, and exempts certain employment wages from tax. For citizens, this means potentially increased attractiveness of investment and economic cooperation with Taiwan, although it primarily affects Taiwan residents and US companies dealing with them.
Key points
Reduced Withholding Tax: Federal tax on interest, dividends, and royalties for qualified Taiwan residents is lowered from 30% to 10% (or 15% for most dividends).
Wage Tax Exemption: Qualified wages (salaries, remuneration) paid to Taiwan residents for services performed in the US by non-US employers are exempt from tax.
Business Income Simplification: Business income earned by a Taiwan resident in the US will only be taxed if it is effectively connected with a US permanent establishment.
Reciprocity Requirement: The provisions will only apply if the US Treasury Secretary determines that Taiwan provides reciprocal tax benefits to US persons and companies.
Future Tax Agreement Authorization: The Act authorizes the President to negotiate and enter into a comprehensive tax agreement with Taiwan, subject to Congressional approval.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_199
Sponsor: Sen. Crapo, Mike [R-ID]
Process start date: 2025-01-23
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill 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_S_199.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-01-23.

What are the main provisions?

Key points include:

  • Reduced Withholding Tax: Federal tax on interest, dividends, and royalties for qualified Taiwan residents is lowered from 30% to 10% (or 15% for most dividends).
  • Wage Tax Exemption: Qualified wages (salaries, remuneration) paid to Taiwan residents for services performed in the US by non-US employers are exempt from tax.
  • Business Income Simplification: Business income earned by a Taiwan resident in the US will only be taxed if it is effectively connected with a US permanent establishment.
  • Reciprocity Requirement: The provisions will only apply if the US Treasury Secretary determines that Taiwan provides reciprocal tax benefits to US persons and companies.
  • Future Tax Agreement Authorization: The Act authorizes the President to negotiate and enter into a comprehensive tax agreement with Taiwan, subject to Congressional approval.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Crapo, Mike [R-ID].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Taxes Economy