Taiwan Tax Agreement Act of 2023

Bill: 118-s-1457
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2023-05-04
Policy area: International Affairs
Subjects: Asia

Congressional oversight

International law and treaties

Taiwan

Tax administration and collection, taxpayers

Taxation of foreign income
Latest action: action_date: 2023-07-25
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 151.

Summaries:
action_date: 2023-05-04
action_desc: Introduced in Senate
text: <p><b>Taiwan Tax Agreement Act of 2023 </b></p> <p>This bill authorizes the United States to enter into a tax agreement with Taiwan.</p> <p>Specifically, the President may, through the American Institute in Taiwan (AIT), negotiate and enter into a tax agreement with the Taipei Economic and Cultural Representative Office (TECRO). (The U.S.-Taiwan relationship is unofficial; TECRO is Taiwan's principal representative office in the United States, while the AIT, a private corporation, performs many of the same functions as U.S. embassies elsewhere.)</p>  <p>The agreement must address issues including (1) the taxation of tax residents of Taiwan, the United States, or both; (2) relief from double taxation; and (3) protection against tax evasion or avoidance. The agreement must conform with the 2016 U.S. Model Income Tax Convention and other customary U.S. bilateral income tax convention terms.</p> <p>The bill requires the President to notify Congress 15 days before negotiations begin and provide periodic reports. The Department of the Treasury must brief Congress upon request and provide timely updates during the course of negotiations.</p> <p>The negotiated agreement may only take legal effect upon submission of the agreement to Congress and the approval of a concurrent resolution in a form prescribed by the bill. The agreement, once in force, must be afforded the same treatment as a treaty under U.S. law. </p>

action_date: 2023-07-25
action_desc: Reported to Senate
text: <p><strong>Taiwan Tax Agreement Act of 2023 </strong></p><p>This bill authorizes the United States to enter into a tax agreement with Taiwan.</p><p>Specifically, the President may, through the American Institute in Taiwan (AIT), negotiate and enter into a tax agreement with the Taipei Economic and Cultural Representative Office (TECRO). (The U.S.-Taiwan relationship is unofficial; TECRO is Taiwan's principal representative office in the United States, while the AIT, a private corporation, performs many of the same functions as U.S. embassies elsewhere.)</p><p>The agreement must address issues including (1) the taxation of tax residents of Taiwan, the United States, or both; (2) relief from double taxation; and (3) protection against tax evasion or avoidance. The agreement must conform with the 2016 U.S. Model Income Tax Convention and other customary U.S. bilateral income tax convention terms.</p><p>The bill requires the President to notify Congress 15 days before negotiations begin and provide periodic briefings. The Department of the Treasury must brief Congress upon request and provide timely updates during the course of negotiations.</p><p>The negotiated agreement may only take legal effect upon submission of the agreement to Congress and the approval of a concurrent resolution in a form prescribed by the bill. The agreement, once in force, must be afforded the same treatment as a treaty under U.S. law.</p>

tv_txt: II Calendar No. 151 118th CONGRESS 1st Session S. 1457 IN THE SENATE OF THE UNITED STATES May 4, 2023 Mr. Menendez (for himself, Mr. Risch , Mr. Van Hollen , Mr. Romney , Mr. Ricketts , Mr. Rubio , Mr. Graham , Ms. Murkowski , Mr. Scott of Florida , Mr. Wicker , Mr. Sullivan , Mr. Kaine , Mrs. Shaheen , Ms. Duckworth , Mr. Coons , Mr. Merkley , and Mr. Hagerty ) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations July 25, 2023 Reported by Mr. Menendez , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To authorize negotiation and conclusion and to provide for congressional consideration of a tax agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO).

1. Short title This Act may be cited as the Taiwan Tax Agreement Act of 2023 . 2. Findings Congress makes the following findings: (1) The United States has entered into tax treaties covering 65 jurisdictions, which facilitate economic activity, strengthen bilateral cooperation, and benefit United States businesses and other United States taxpayers. (2) Taiwan is a one of the largest trading partners of the United States and one of the world’s largest economies, and further bolstering economic ties between the United States and Taiwan remains critical, especially given Taiwan’s strategic importance and the increasing threat posed by the People’s Republic of China. (3) A tax agreement with Taiwan would play a key role in facilitating and promoting increased bilateral investment and trade between the United States and Taiwan, fortifying the relationship between the two more generally, and encouraging other nations to increase their economic linkages to Taiwan. 3. Authorization to negotiate and conclude (a) In general The President is authorized to negotiate and enter into a tax agreement relative to Taiwan through the American Institute in Taiwan (AIT) (hereinafter the Agreement ). (b) Elements of agreement The Agreement authorized to be negotiated and concluded under this section shall conform with the provisions customarily contained in United States bilateral income tax conventions, as exemplified by the 2016 United States Model Income Tax Convention, and shall include the following elements: (1) Application to tax residents of the United States, Taiwan, or both, exclusive of enterprises permanently established in the People’s Republic of China or in third States that do not have a comprehensive income tax treaty with the United States. (2) Relief from double taxation. (3) Measures aimed at limiting the risk of tax evasion or avoidance. (4) Entry into force conditioned upon confirmation by the President of approval by the United States Congress, as described in section 4, and relevant authority in Taiwan and necessary steps taken to enable implementation. (c) Limitation The Agreement authorized to be negotiated and concluded under this section may not include elements outside the scope of the 2016 United States Model Income Tax Convention. 4. Consultation (a) Notification upon commencement of negotiations The President shall provide written notification to the appropriate congressional committees of the commencement of negotiations between AIT and TECRO on the Agreement at least 15 calendar days before such commencement. (b) Reports Not later than 90 days after commencement of negotiations on the Agreement, and every 180 days thereafter until conclusion of the Agreement, the President shall submit a report to the appropriate congressional committees providing an update on the status of negotiations, including a description of elements under negotiation. (c) Consultations during negotiations In the course of negotiations conducted under the authorities of this Act, the Secretary of the Treasury, in coordination with the Secretary of State, shall— (1) meet, upon request, with the Chairman or Ranking Member of the appropriate congressional committees regarding negotiating objectives and the status of negotiations in progress; and (2) consult closely, on a timely basis, and keep fully apprised of the negotiations, the appropriate congressional committees. 5. Approval of the Agreement (a) Submission of agreement Not later than 30 days after the Agreement is concluded, the Secretary of State shall provide the Agreement and technical explanation to the appropriate congressional committees. (b) Approval The Agreement shall not take effect until after Congress passes a concurrent resolution of approval as described in subsection (c). (c) Terms of concurrent resolution of approval (1) In general For purposes of subsection (b), the term concurrent resolution of approval means only a concurrent resolution— (A) which does not have a preamble; (B) which includes in the matter after the resolving clause the following: That Congress approves the Tax Agreement concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office, as submitted by the President on ____. , the blank space being filled in with the appropriate date; and (C) the title of which is as follows: Concurrent resolution approving the Tax Agreement concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office. . (2) Referral A resolution described in this subsection that is introduced in the Senate shall be referred to the Committee on Foreign Relations of the Senate. A resolution described in this subsection that is introduced in the House of Representatives shall be referred to the Committee on Foreign Affairs of the House of Representatives. 6. Entry into force and legal effect of the Agreement (a) Entry into force Upon passage of the concurrent resolution of approval, the President may bring the Agreement into force. (b) Legal effect Upon entry into force, the Agreement shall be afforded the same treatment as a treaty for purposes of the laws of the United States. 7. Appropriate congressional committees defined In this section, the term appropriate congressional committees means the Committee on Foreign Relations and the Committee on Finance of the Senate and the Committee on Foreign Affairs and the Committee on Ways and Means of the House of Representatives.

1. Short title This Act may be cited as the Taiwan Tax Agreement Act of 2023 . 2. Findings Congress makes the following findings: (1) The United States has entered into tax treaties covering 65 jurisdictions, which facilitate economic activity, strengthen bilateral cooperation, and benefit United States businesses and other United States taxpayers. (2) Taiwan is a one of the largest trading partners of the United States and one of the world’s largest economies, and further bolstering economic ties between the United States and Taiwan remains critical, especially given Taiwan’s strategic importance and the increasing threat posed by the People’s Republic of China. (3) A tax agreement with Taiwan would play a key role in facilitating and promoting increased bilateral investment and trade between the United States and Taiwan, fortifying the relationship between the two more generally, and encouraging other nations to increase their economic linkages to Taiwan. 3. Authorization to negotiate and conclude (a) In general The President is authorized to negotiate and enter into a tax agreement relative to Taiwan through the American Institute in Taiwan (AIT) (hereinafter the Agreement ). (b) Elements of agreement The Agreement authorized to be negotiated and concluded under this section shall conform with the provisions customarily contained in United States bilateral income tax conventions, as exemplified by the 2016 United States Model Income Tax Convention, and shall include the following elements: (1) Application to tax residents of the United States, Taiwan, or both, exclusive of enterprises headquartered in the People’s Republic of China or in third states that do not have a comprehensive income tax treaty with the United States. (2) Relief from double taxation. (3) Measures aimed at limiting the risk of tax evasion or avoidance. (4) Entry into force conditioned upon confirmation by the President of approval by the United States Congress, as described in section 5, and relevant authority in Taiwan and necessary steps taken to enable implementation. (c) Limitation The Agreement authorized to be negotiated and concluded under this section may not include elements outside the scope of the 2016 United States Model Income Tax Convention. 4. Consultation (a) Notification upon commencement of negotiations The President shall provide written notification to the appropriate congressional committees of the commencement of negotiations between AIT and TECRO on the Agreement at least 15 calendar days before such commencement. (b) Briefings Not later than 90 days after commencement of negotiations on the Agreement, and every 180 days thereafter until conclusion of the Agreement, the President shall provide a briefing to the appropriate congressional committees providing an update on the status of negotiations, including a description of elements under negotiation. (c) Consultations during negotiations In the course of negotiations conducted under the authorities of this Act, the Secretary of the Treasury, in coordination with the Secretary of State, shall— (1) meet, upon request, with the Chairman or Ranking Member of the appropriate congressional committees regarding negotiating objectives and the status of negotiations in progress; and (2) consult closely, on a timely basis, and keep fully apprised of the negotiations, the appropriate congressional committees. 5. Approval of the Agreement (a) Submission of agreement Not later than 180 days after the Agreement is concluded, the Secretary of State shall provide the Agreement and technical explanation to the appropriate congressional committees. (b) Approval The Agreement shall not take effect until after Congress passes a concurrent resolution of approval as described in subsection (c). (c) Terms of concurrent resolution of approval (1) In general For purposes of subsection (b), the term concurrent resolution of approval means only a concurrent resolution— (A) which does not have a preamble; (B) which includes in the matter after the resolving clause the following: That Congress approves the Tax Agreement concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office, as submitted by the President on ____. , the blank space being filled in with the appropriate date; and (C) the title of which is as follows: Concurrent resolution approving the Tax Agreement concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office. . (2) Referral A resolution described in this subsection that is introduced in the Senate shall be referred to the Committee on Foreign Relations of the Senate. A resolution described in this subsection that is introduced in the House of Representatives shall be referred to the Committee on Foreign Affairs of the House of Representatives. 6. Entry into force and legal effect of the Agreement (a) Entry into force Upon passage of the concurrent resolution of approval, the President may bring the Agreement into force. (b) Legal effect Upon entry into force, the Agreement shall be afforded the same treatment as a treaty for purposes of the laws of the United States. 7. Appropriate congressional committees defined In this section, the term appropriate congressional committees means the Committee on Foreign Relations and the Committee on Finance of the Senate and the Committee on Foreign Affairs and the Committee on Ways and Means of the House of Representatives.

July 25, 2023 Reported with an amendment

tv_txt: II 118th CONGRESS 1st Session S. 1457 IN THE SENATE OF THE UNITED STATES May 4, 2023 Mr. Menendez (for himself, Mr. Risch , Mr. Van Hollen , and Mr. Romney ) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To authorize negotiation and conclusion and to provide for congressional consideration of a tax agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO).

1. Short title This Act may be cited as the Taiwan Tax Agreement Act of 2023 . 2. Findings Congress makes the following findings: (1) The United States has entered into tax treaties covering 65 jurisdictions, which facilitate economic activity, strengthen bilateral cooperation, and benefit United States businesses and other United States taxpayers. (2) Taiwan is a one of the largest trading partners of the United States and one of the world’s largest economies, and further bolstering economic ties between the United States and Taiwan remains critical, especially given Taiwan’s strategic importance and the increasing threat posed by the People’s Republic of China. (3) A tax agreement with Taiwan would play a key role in facilitating and promoting increased bilateral investment and trade between the United States and Taiwan, fortifying the relationship between the two more generally, and encouraging other nations to increase their economic linkages to Taiwan. 3. Authorization to negotiate and conclude (a) In general The President is authorized to negotiate and enter into a tax agreement relative to Taiwan through the American Institute in Taiwan (AIT) (hereinafter the Agreement ). (b) Elements of agreement The Agreement authorized to be negotiated and concluded under this section shall conform with the provisions customarily contained in United States bilateral income tax conventions, as exemplified by the 2016 United States Model Income Tax Convention, and shall include the following elements: (1) Application to tax residents of the United States, Taiwan, or both, exclusive of enterprises permanently established in the People’s Republic of China or in third States that do not have a comprehensive income tax treaty with the United States. (2) Relief from double taxation. (3) Measures aimed at limiting the risk of tax evasion or avoidance. (4) Entry into force conditioned upon confirmation by the President of approval by the United States Congress, as described in section 4, and relevant authority in Taiwan and necessary steps taken to enable implementation. (c) Limitation The Agreement authorized to be negotiated and concluded under this section may not include elements outside the scope of the 2016 United States Model Income Tax Convention. 4. Consultation (a) Notification upon commencement of negotiations The President shall provide written notification to the appropriate congressional committees of the commencement of negotiations between AIT and TECRO on the Agreement at least 15 calendar days before such commencement. (b) Reports Not later than 90 days after commencement of negotiations on the Agreement, and every 180 days thereafter until conclusion of the Agreement, the President shall submit a report to the appropriate congressional committees providing an update on the status of negotiations, including a description of elements under negotiation. (c) Consultations during negotiations In the course of negotiations conducted under the authorities of this Act, the Secretary of the Treasury, in coordination with the Secretary of State, shall— (1) meet, upon request, with the Chairman or Ranking Member of the appropriate congressional committees regarding negotiating objectives and the status of negotiations in progress; and (2) consult closely, on a timely basis, and keep fully apprised of the negotiations, the appropriate congressional committees. 5. Approval of the Agreement (a) Submission of agreement Not later than 30 days after the Agreement is concluded, the Secretary of State shall provide the Agreement and technical explanation to the appropriate congressional committees. (b) Approval The Agreement shall not take effect until after Congress passes a concurrent resolution of approval as described in subsection (c). (c) Terms of concurrent resolution of approval (1) In general For purposes of subsection (b), the term concurrent resolution of approval means only a concurrent resolution— (A) which does not have a preamble; (B) which includes in the matter after the resolving clause the following: That Congress approves the Tax Agreement concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office, as submitted by the President on ____. , the blank space being filled in with the appropriate date; and (C) the title of which is as follows: Concurrent resolution approving the Tax Agreement concluded between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office. . (2) Referral A resolution described in this subsection that is introduced in the Senate shall be referred to the Committee on Foreign Relations of the Senate. A resolution described in this subsection that is introduced in the House of Representatives shall be referred to the Committee on Foreign Affairs of the House of Representatives. 6. Entry into force and legal effect of the Agreement (a) Entry into force Upon passage of the concurrent resolution of approval, the President may bring the Agreement into force. (b) Legal effect Upon entry into force, the Agreement shall be afforded the same treatment as a treaty for purposes of the laws of the United States. 7. Appropriate congressional committees defined In this section, the term appropriate congressional committees means the Committee on Foreign Relations and the Committee on Finance of the Senate and the Committee on Foreign Affairs and the Committee on Ways and Means of the House of Representatives.