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.
Sponsors
Legislative Progress
In CommitteeReceived; read twice and referred to the Committee on Finance
Passed House (inferred from eh version)
Mr. Smith of Missouri (for himself and Mr. Neal) introduced …
Summary
What This Bill Does
Grants Taiwan residents reduced US withholding tax rates on investment income (10% instead of 30%) similar to tax treaty benefits, despite the US not having a formal tax treaty with Taiwan.
Who Benefits and How
Taiwan residents and businesses investing in the US benefit from reduced withholding on dividends, interest, and royalties. US-Taiwan economic ties strengthen through tax parity with treaty partners.
Who Bears the Burden and How
US Treasury receives reduced tax revenue from Taiwan-source investment income. Administrative systems must accommodate Taiwan-specific rules.
Key Provisions
- Reduces withholding rate from 30% to 10% for qualified Taiwan residents
- Applies to interest, dividends, royalties, and certain gains
- Defines qualified resident of Taiwan based on residency tests
- Includes anti-abuse provisions for real estate and expatriated entities
- Creates framework for reciprocal tax relief
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Provides reduced US withholding tax rates for Taiwan residents similar to tax treaty benefits
Policy Domains
Legislative Strategy
"Provide tax treaty-equivalent benefits to Taiwan without formal treaty"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
Person meeting residency and beneficial owner requirements under the section
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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