U.S. Senate Passes Bipartisan Bill to Negotiate Tax Agreement with Taiwan

The Senate Foreign Relations Committee has passed the "Taiwan Tax Agreement Act of 2023’’, which would authorize the Biden Administration to negotiate and conclude a tax agreement between the United States and Taiwan.

This bill would facilitate investment between the two countries in key strategic industries such as semiconductors, and make it easier for businesses to avoid double taxation while also protecting against tax evasion.

The Taiwan Tax Agreement Act of 2023 was passed on a bipartisan basis, with support from both Democrats and Republicans. Senators Bob Menendez (D-NJ) and Jim Risch (R-ID), the Chairman and Ranking Member of the Senate Foreign Relations Committee, led the effort to pass the bill.

This law is significant because it would be the first tax agreement between the United States and Taiwan, and is expected to go before the full Senate for a vote.