Taiwan is a strong democratic ally of the United States, as well as one of our largest and most critical trading partners in the semiconductor industry and advanced manufacturing, making Taiwan a key economic partner.
However, double taxation issues are hindering our ability to do business and bolster our economic partnership to the benefit of both our nations, discouraging cross-border investment, placing economic burdens on American and Taiwanese businesses, and stifling jobs and the manufacturing industry.
Because of Taiwan’s unique status, it is our largest trading partner that we don’t have an income tax treaty with. Therefore, we need a unique solution to address double taxation between Taiwan and the U.S. that bolsters the partnership between our two nations by providing targeted and expedited tax relief and a way for a more extensive tax agreement.
Additionally, by strengthening our economic partnership with Taiwan, we also strengthen our national security. Taiwan is a world leader in semiconductor manufacturing, which produces the chips used in everything from cell phones, cars, and data centers to advanced weapons and military equipment. This makes Taiwan a key player in U.S. national security, as well as the national security of democratic nations, and our partnership benefits both America and Taiwan’s economies and national security.
It’s clear that bolstering our ties with Taiwan is in our country’s best interests, and would create jobs, boost the manufacturing industry, encourage investment in our communities, and promote prosperity for both America and Taiwan.
Chairman Jason Smith’s legislation, H.R. 33, the United States-Taiwan Expedited Double-Tax Relief Act, strengthens the U.S. economic alliance with Taiwan and enhances our competitive position by providing targeted and expedited relief from double taxation on cross-border investment between America and Taiwan through tax code changes and authorizing the President to broker and enter into a tax agreement relative to Taiwan.
House Republicans stand with our economic ally and will continue working to strengthen our ties, provide tax relief for cross-border investment, remove the burden from American and Taiwanese businesses, and deliver economic prosperity for both our nations.