US House of Representatives approved taxation relief bill related to Taiwan, this is its main objective

Washington: The US House of Representatives passed a new bill on January 15. Its main purpose is to reduce taxes, prevent double taxation, and provide tax breaks to Taiwanese businesses, residents, and employees in the US. This information has been given by Central News Agency Taiwan.

Titled The United States-Taiwan Expedited Double-Tax Relief Act, the act was passed in the House by a 423-1 vote, according to Focus Taiwan. It will now be sent to the US Senate for a vote and, if approved, will be sent to the US President to be signed into law.

The main objective of the bill is to prevent double taxation between the US and Taiwan. According to a report by Focus Taiwan, it wants to amend current US tax laws to provide tax breaks for eligible Taiwanese residents in the US and reduce tax rates on income from specific sources in the US, such as dividends and interest. Is.

talks regarding taiwan

Focus Taiwan said that in a significant development, the bill would seek to enact the United States-Taiwan Tax Agreement Authorization Act, which would authorize the US President to “negotiate and enter into tax agreements with respect to Taiwan.” Representative Judy Chu said that current laws require Americans doing business in Taiwan to pay income taxes on the same income in both places, and vice versa, which “has hurt businesses of all sizes.”

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He said that among America's top 10 trading partners, “only Taiwan lacks a double tax agreement.”

He also cited a survey conducted by the American Institute in Taiwan, which showed that for 79 percent of Taiwanese companies, the double taxation requirement of income was “a significant factor” that prevented them from “investing more in the US.”

Taiwan is America's eighth largest trading partner

Taiwan Focus said Representative Jason Smith, who chairs the House Ways and Means Committee, made the point before the vote that Taiwan is America's eighth-largest trading partner, but it is “clearly not included” in the list of 66 countries. Absent from” the United States with whom the United States has income tax treaties.

Smith said the new bill “promotes economic efficiency and integration, strengthens our strategic partnership with Taiwan, and strengthens the long-term economic stability that American businesses and our trusted allies need to invest in the future and There is a need to deal with the influence of bad people.”

(with agency input)