To authorize negotiation and conclusion and to provide for congressional consideration of a tax agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO).
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Taiwan Tax Agreement Act of 2023 authorizes the President to negotiate a bilateral income tax agreement with Taiwan through the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO). The agreement must conform to the 2016 US Model Income Tax Convention and include provisions for double taxation relief and anti-tax evasion measures. It requires congressional approval via concurrent resolution before taking effect.
Who Benefits and How
US businesses operating in Taiwan and Taiwanese businesses operating in the US benefit from double taxation relief, reducing their effective tax burden and encouraging cross-border investment. Both economies benefit from reduced barriers to bilateral trade and investment. The agreement explicitly excludes enterprises headquartered in the PRC, benefiting US and Taiwanese companies relative to Chinese competitors.
Who Bears the Burden and How
The US Treasury and State Department bear administrative burden of negotiating and consulting with Congress throughout the process. Congress takes on procedural obligations for review and approval. Any reduction in double taxation may reduce tax revenue collected by the US and/or Taiwan from cross-border economic activity.
Key Provisions
- Authorizes President to negotiate tax agreement via AIT-TECRO channel
- Agreement must conform to 2016 US Model Income Tax Convention
- Excludes enterprises headquartered in PRC or non-treaty third states
- Requires 15-day advance notice to Congress before negotiations begin
- Mandates status reports every 180 days during negotiations
- Requires concurrent resolution of approval from both chambers
- Gives agreement treaty-level legal effect upon entry into force
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Authorizes the President to negotiate and conclude a bilateral tax agreement between the United States and Taiwan (via AIT and TECRO), establishing congressional consultation and approval procedures, and giving the agreement treaty-level legal effect upon ratification.
Key Policy Areas
Taxation, Foreign Affairs, Trade
Primary Purpose
Authorizes the President to negotiate and conclude a bilateral tax agreement between the United States and Taiwan (via AIT and TECRO), establishing congressional consultation and approval procedures, and giving the agreement treaty-level legal effect upon ratification.
Policy Domains
Taiwan Tax Agreement Act of 2023
Identified Gains
Contextual inference, no direct clause citation- US businesses with Taiwan operations
- Taiwanese businesses with US operations
- US-Taiwan bilateral trade relationship
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- US Treasury (reduced double-tax revenue)
- State Department and Treasury (negotiation and consultation burden)
- PRC-headquartered enterprises (explicit exclusion)
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
ReportedReported by Mr. Menendez, with an amendment
Mr. Menendez (for himself, Mr. Risch, Mr. Van Hollen, and …
Mr. Menendez (for himself, Mr. Risch, Mr. Van Hollen, Mr. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Congress, Congressional committees, Secretary of State
Positive-direction: Congressional committees
Negative-direction: Congress, Secretary of State, Secretary of Treasury, US Treasury
PRC-headquartered enterprises, Taiwanese businesses with US operations, US businesses operating in Taiwan
Positive-direction: Taiwanese businesses with US operations, US businesses with Taiwan operations
Negative-direction: PRC-headquartered enterprises
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "AIT"
- → American Institute in Taiwan
- "TECRO"
- → Taipei Economic and Cultural Representative Office
- "the_president"
- → President of the United States
- "secretary_of_state"
- → Secretary of State
- "secretary_of_treasury"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
A concurrent resolution without preamble stating Congress approves the Tax Agreement concluded between AIT and TECRO
Senate Foreign Relations and Finance Committees, and House Foreign Affairs and Ways and Means Committees
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.
Learn more about our methodology