[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 199 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 199
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 23, 2025
Mr. Crapo (for himself, Mr. Risch, Mr. Wyden, and Mrs. Shaheen)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

f710bc1fda927709d7892c9e402ea32d60922338f1558b3c976c515c86ebfabb

This title may be cited as the ``United States-Taiwan Expedited
Double-Tax Relief Act''.

481cb410789a47edc2bd1413ae74adb6918f346e611ca116a453efa4aad10d9f

TITLE I

-UNITED STATES-TAIWAN EXPEDITED DOUBLE-TAX RELIEF ACT

32ce0fcb1c90c30d19a029e40c8c6206ddcdf984dc030871c5991159dba675c0

This title may be cited as the ``United States-Taiwan Tax Agreement
Authorization Act''.

955a28b389f8679a9bec70e218e7fea0c36d9086e3b6b304ff426528971a2280

TITLE II

-UNITED STATES-TAIWAN TAX AGREEMENT AUTHORIZATION ACT

In this title:
(1) Agreement.--The term ``Agreement'' means the tax
agreement authorized by section 203(a).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the
Committee on Finance of the Senate; and
(B) the Committee on Ways and Means of the House of
Representatives.
(3) Approval legislation.--The term ``approval
legislation'' means legislation that approves the Agreement.
(4) Implementing legislation.--The term ``implementing
legislation'' means legislation that makes any changes to the
Internal Revenue Code of 1986 necessary to implement the
Agreement.

052d594ea71d1a55ab95f32aa6a98ec006b697b60743cca25fce69644a3bc235

(a) In General.--Subsequent to a determination under section
894A(e)(1) of the Internal Revenue Code of 1986 (as added by the United
States-Taiwan Expedited Double-Tax Relief Act), the President is
authorized to negotiate and enter into a tax agreement relative to
Taiwan.
(b) Elements of Agreement.--
(1) Conformity with bilateral income tax conventions.--The
President shall ensure that--
(A) any provisions included in the Agreement
conform with provisions customarily contained in United
States bilateral income tax conventions, as exemplified
by the 2016 United States Model Income Tax Convention;
and
(B) the Agreement does not include elements outside
the scope of the 2016 United States Model Income Tax
Convention.
(2) Incorporation of tax agreements and laws.--
Notwithstanding paragraph (1), the Agreement may incorporate
and restate provisions of any agreement, or existing United
States law, addressing double taxation for residents of the
United States and Taiwan.
(3) Authority.--The Agreement shall include the following
statement: ``The Agreement is entered into pursuant to the
United States-Taiwan Tax Agreement Authorization Act.''
(4) Entry into force.--The Agreement shall include a
provision conditioning entry into force upon--
(A) enactment of approval legislation and
implementing legislation pursuant to section 207; and
(B) confirmation by the Secretary of the Treasury
that the relevant authority in Taiwan has approved and
taken appropriate steps required to implement the
Agreement.

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(a) Notification Upon Commencement of Negotiations.--The President
shall provide written notification to the appropriate congressional
committees of the commencement of negotiations between the United
States and Taiwan on the Agreement at least 15 calendar days before
commencing such negotiations.
(b) Consultations During Negotiations.--
(1) Briefings.--Not later than 90 days after commencement
of negotiations with respect to the Agreement, and every 180
days thereafter until the President enters into the Agreement,
the President shall provide a briefing to the appropriate
congressional committees on the status of the negotiations,
including a description of elements under negotiation.
(2) Meetings and other consultations.--
(A) In general.--In the course of negotiations with
respect to the Agreement, the Secretary of the
Treasury, in coordination with the Secretary of State,
shall--
(i) meet, upon request, with the chairman
or ranking member of any of the appropriate
congressional committees regarding negotiating
objectives and the status of negotiations in
progress; and
(ii) consult closely and on a timely basis
with, and keep fully apprised of the
negotiations, the appropriate congressional
committees.
(B) Elements of consultations.--The consultations
described in subparagraph (A) shall include
consultations with respect to--
(i) the nature of the contemplated
Agreement;
(ii) how and to what extent the
contemplated Agreement is consistent with the
elements set forth in section 203(b); and
(iii) the implementation of the
contemplated Agreement, including--
(I) the general effect of the
contemplated Agreement on existing
laws;
(II) proposed changes to any
existing laws to implement the
contemplated Agreement; and
(III) proposed administrative
actions to implement the contemplated
Agreement.

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(a) In General.--The Agreement may not enter into force unless--
(1) the President, at least 60 days before the day on which
the President enters into the Agreement, publishes the text of
the contemplated Agreement on a publicly available website of
the Department of the Treasury; and
(2) there is enacted into law, with respect to the
Agreement, approval legislation and implementing legislation
pursuant to section 207.
(b) Entry Into Force.--The President may provide for the Agreement
to enter into force upon--
(1) enactment of approval legislation and implementing
legislation pursuant to section 207; and
(2) confirmation by the Secretary of the Treasury that the
relevant authority in Taiwan has approved and taken appropriate
steps required to implement the Agreement.

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POLICY.
(a) Submission of Agreement.--Not later than 270 days after the
President enters into the Agreement, the President or the President's
designee shall submit to Congress--
(1) the final text of the Agreement; and
(2) a technical explanation of the Agreement.
(b) Submission of Implementation Policy.--Not later than 270 days
after the President enters into the Agreement, the Secretary of the
Treasury shall submit to Congress--
(1) a description of those changes to existing laws that
the President considers would be required in order to ensure
that the United States acts in a manner consistent with the
Agreement; and
(2) a statement of anticipated administrative action
proposed to implement the Agreement.

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LEGISLATION.
(a) In General.--The approval legislation with respect to the
Agreement shall include the following: ``Congress approves the
Agreement submitted to Congress pursuant to section 206 of the United
States-Taiwan Tax Agreement Authorization Act on ____.'', with the
blank space being filled with the appropriate date.
(b) Approval Legislation Committee Referral.--The approval
legislation shall--
(1) in the Senate, be referred to the Committee on Foreign
Relations; and
(2) in the House of Representatives, be referred to the
Committee on Ways and Means.
(c) Implementing Legislation Committee Referral.--The implementing
legislation shall--
(1) in the Senate, be referred to the Committee on Finance;
and
(2) in the House of Representatives, be referred to the
Committee on Ways and Means.

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(a) Internal Revenue Code of 1986 to Control.--No provision of the
Agreement or approval legislation, nor the application of any such
provision to any person or circumstance, which is inconsistent with any
provision of the Internal Revenue Code of 1986, shall have effect.
(b) Construction.--Nothing in this title shall be construed--
(1) to amend or modify any law of the United States; or
(2) to limit any authority conferred under any law of the
United States, unless specifically provided for in this title.

d3e4712a677f3fb4cc135c70878b5831682e2508f52e4995d59bd4f691b0720e

TAIWAN.
(a) In General.--Subsequent to the enactment of approval
legislation and implementing legislation pursuant to section 207--
(1) the term ``tax agreement'' in section 203(a) shall be
treated as including any tax agreement relative to Taiwan which
supplements or supersedes the Agreement to which such approval
legislation and implementing legislation relates; and
(2) the term ``Agreement'' shall be treated as including
such tax agreement.
(b) Requirements, etc., To Apply Separately.--The provisions of
this title (including section 204) shall be applied separately with
respect to each tax agreement referred to in subsection (a).

3a195a684f532031120a5580bdd1f066e18b850f6bdfcb0276245086ff1f2625

RESPECT TO TAIWAN.
(a) Findings.--Congress makes the following findings:
(1) The United States addresses issues with respect to
double taxation with foreign countries by entering into
bilateral income tax conventions (known as tax treaties) with
such countries, subject to the advice and consent of the Senate
to ratification pursuant to article II of the Constitution.
(2) The United States has entered into more than sixty such
tax treaties, which facilitate economic activity, strengthen
bilateral cooperation, and benefit United States workers,
businesses, and other United States taxpayers.
(3) Due to Taiwan's unique status, the United States is
unable to enter into an article II tax treaty with Taiwan,
necessitating an agreement to address issues with respect to
double taxation.
(b) Statement of Policy.--It is the policy of the United States
to--
(1) provide for additional bilateral tax relief with
respect to Taiwan, beyond that provided for in section 894A of
the Internal Revenue Code of 1986 (as added by the United
States-Taiwan Expedited Double-Tax Relief Act), only after
entry into force of an Agreement, as provided for in section
205, and only in a manner consistent with such Agreement; and
(2) continue to provide for bilateral tax relief with
sovereign states to address double taxation and other related
matters through entering into bilateral income tax conventions,
subject to the Senate's advice and consent to ratification
pursuant to article II of the Constitution.
<all>

8ce52b699fee093771abe7d89838376724e0c27900e65744677469b33efdb4c4

United States-Taiwan Tax Agreement Authorization Act

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.

United States-Taiwan Tax Agreement Authorization Act — S. 199

Other Sections

TITLE I

TITLE II

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