Metro Lex News

Yesterday, U.S. Representatives Andy Barr and Ami Bera, who co-chair the Congressional Taiwan Caucus, led a bipartisan initiative urging House and Senate leaders to approve measures for U.S.-Taiwan double taxation relief before the year ends. The letter was supported by over 100 members of Congress.

Earlier this year, the House passed provisions related to Taiwan within the bipartisan Tax Relief for American Families and Workers Act. These provisions aim to alleviate double taxation on cross-border investments between the U.S. and Taiwan and grant authority for a tax agreement with Taiwan.

Despite these efforts, the Tax Relief for American Families and Workers Act has stalled in the Senate, preventing progress on Taiwan tax relief.

The letter from Members of Congress stated: “Currently, tax disincentives discourage Taiwanese and American companies from expanding reciprocal investments in both economies due to the absence of a bilateral tax arrangement."

It continued: “Without double tax relief, these disincentives will hinder additional Taiwanese investments in critical sectors, such as semiconductors, within the U.S. economy. The absence of these investments and expertise will make it even more difficult for the United States to lessen its foreign dependency on imports of critical technologies and avert supply chain disruptions that pose ongoing threats to U.S. national security and economic growth."

The Members concluded: “We can make real progress in removing tax disincentives on U.S. and Taiwan cross-border investments by enacting the U.S.-Taiwan double taxation relief measures this year. We believe there is overwhelming support in the Senate for doing so, as was the case in the House. We urge you to collaborate actively to pass the Taiwan tax provisions passed in the House before the 118th Congress adjourns. U.S. and Taiwanese investors shouldn’t have to wait for the next Congress to act.”

For further details, access to full text of their letter is available online.