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Us Congress House Bill HB33

Us Congress 2025-2026 Regular Session

Us Congress House Bill HB33 Compare Versions

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1+I
12 119THCONGRESS
23 1
34 STSESSION H. R. 33
4-AN ACT
5+To amend the Internal Revenue Code of 1986 to provide special rules for
6+the taxation of certain residents of Taiwan with income from sources
7+within the United States.
8+IN THE HOUSE OF REPRESENTATIVES
9+JANUARY3, 2025
10+Mr. S
11+MITHof Missouri (for himself and Mr. NEAL) introduced the following
12+bill; which was referred to the Committee on Ways and Means, and in
13+addition to the Committee on Rules, for a period to be subsequently de-
14+termined by the Speaker, in each case for consideration of such provisions
15+as fall within the jurisdiction of the committee concerned
16+A BILL
517 To amend the Internal Revenue Code of 1986 to provide
618 special rules for the taxation of certain residents of Tai-
719 wan with income from sources within the United States.
820 Be it enacted by the Senate and House of Representa-1
9-tives of the United States of America in Congress assembled, 2 2
10-•HR 33 EH
11-TITLE I—UNITED STATES-TAI-1
12-WAN EXPEDITED DOUBLE- 2
13-TAX RELIEF ACT 3
14-SEC. 101. SHORT TITLE. 4
15-This title may be cited as the ‘‘United States-Taiwan 5
16-Expedited Double-Tax Relief Act’’. 6
17-SEC. 102. SPECIAL RULES FOR TAXATION OF CERTAIN 7
18-RESIDENTS OF TAIWAN. 8
21+tives of the United States of America in Congress assembled, 2
22+TITLE I—UNITED STATES-TAI-3
23+WAN EXPEDITED DOUBLE- 4
24+TAX RELIEF ACT 5
25+SEC. 101. SHORT TITLE. 6
26+This title may be cited as the ‘‘United States-Taiwan 7
27+Expedited Double-Tax Relief Act’’. 8
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30+•HR 33 IH
31+SEC. 102. SPECIAL RULES FOR TAXATION OF CERTAIN 1
32+RESIDENTS OF TAIWAN. 2
1933 (a) I
20-NGENERAL.—Subpart D of part II of sub-9
21-chapter N of chapter 1 of the Internal Revenue Code of 10
22-1986 is amended by inserting after section 894 the fol-11
23-lowing new section: 12
24-‘‘SEC. 894A. SPECIAL RULES FOR QUALIFIED RESIDENTS OF 13
25-TAIWAN. 14
34+NGENERAL.—Subpart D of part II of sub-3
35+chapter N of chapter 1 of the Internal Revenue Code of 4
36+1986 is amended by inserting after section 894 the fol-5
37+lowing new section: 6
38+‘‘SEC. 894A. SPECIAL RULES FOR QUALIFIED RESIDENTS OF 7
39+TAIWAN. 8
2640 ‘‘(a) C
27-ERTAININCOMEFROMUNITEDSTATES 15
41+ERTAININCOMEFROMUNITEDSTATES 9
2842 S
29-OURCES.— 16
43+OURCES.— 10
3044 ‘‘(1) I
31-NTEREST, DIVIDENDS, AND ROYALTIES, 17
32-ETC.— 18
45+NTEREST, DIVIDENDS, AND ROYALTIES, 11
46+ETC.— 12
3347 ‘‘(A) I
34-N GENERAL.—In the case of interest 19
35-(other than original issue discount), dividends, 20
36-royalties, amounts described in section 21
37-871(a)(1)(C), and gains described in section 22
38-871(a)(1)(D) received by or paid to a qualified 23
39-resident of Taiwan— 24 3
40-•HR 33 EH
41-‘‘(i) sections 871(a), 881(a), 1441(a), 1
42-1441(c)(5), and 1442(a) shall each be ap-2
43-plied by substituting ‘the applicable per-3
44-centage (as defined in section 4
45-894A(a)(1)(C))’ for ‘30 percent’ each place 5
46-it appears, and 6
47-‘‘(ii) sections 871(a), 881(a), and 7
48-1441(c)(1) shall each be applied by sub-8
49-stituting ‘a United States permanent es-9
50-tablishment of a qualified resident of Tai-10
51-wan’ for ‘a trade or business within the 11
52-United States’ each place it appears. 12
48+N GENERAL.—In the case of interest 13
49+(other than original issue discount), dividends, 14
50+royalties, amounts described in section 15
51+871(a)(1)(C), and gains described in section 16
52+871(a)(1)(D) received by or paid to a qualified 17
53+resident of Taiwan— 18
54+‘‘(i) sections 871(a), 881(a), 1441(a), 19
55+1441(c)(5), and 1442(a) shall each be ap-20
56+plied by substituting ‘the applicable per-21
57+centage (as defined in section 22
58+894A(a)(1)(C))’ for ‘30 percent’ each place 23
59+it appears, and 24
60+‘‘(ii) sections 871(a), 881(a), and 25
61+1441(c)(1) shall each be applied by sub-26
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64+•HR 33 IH
65+stituting ‘a United States permanent es-1
66+tablishment of a qualified resident of Tai-2
67+wan’ for ‘a trade or business within the 3
68+United States’ each place it appears. 4
5369 ‘‘(B) E
54-XCEPTIONS.— 13
70+XCEPTIONS.— 5
5571 ‘‘(i) I
56-N GENERAL.—Subparagraph (A) 14
57-shall not apply to— 15
58-‘‘(I) any dividend received from 16
59-or paid by a real estate investment 17
60-trust which is not a qualified REIT 18
61-dividend, 19
62-‘‘(II) any amount subject to sec-20
63-tion 897, 21
64-‘‘(III) any amount received from 22
65-or paid by an expatriated entity (as 23
66-defined in section 7874(a)(2)) to a 24 4
67-•HR 33 EH
68-foreign related person (as defined in 1
69-section 7874(d)(3)), and 2
70-‘‘(IV) any amount which is in-3
71-cluded in income under section 860C 4
72-to the extent that such amount does 5
73-not exceed an excess inclusion with re-6
74-spect to a REMIC. 7
72+N GENERAL.—Subparagraph (A) 6
73+shall not apply to— 7
74+‘‘(I) any dividend received from 8
75+or paid by a real estate investment 9
76+trust which is not a qualified REIT 10
77+dividend, 11
78+‘‘(II) any amount subject to sec-12
79+tion 897, 13
80+‘‘(III) any amount received from 14
81+or paid by an expatriated entity (as 15
82+defined in section 7874(a)(2)) to a 16
83+foreign related person (as defined in 17
84+section 7874(d)(3)), and 18
85+‘‘(IV) any amount which is in-19
86+cluded in income under section 860C 20
87+to the extent that such amount does 21
88+not exceed an excess inclusion with re-22
89+spect to a REMIC. 23
7590 ‘‘(ii) Q
76-UALIFIED REIT DIVIDEND .— 8
77-For purposes of clause (i)(I), the term 9
78-‘qualified REIT dividend’ means any divi-10
79-dend received from or paid by a real estate 11
80-investment trust if such dividend is paid 12
81-with respect to a class of shares that is 13
82-publicly traded and the recipient of the 14
83-dividend is a person who holds an interest 15
84-in any class of shares of the real estate in-16
85-vestment trust of not more than 5 percent. 17
91+UALIFIED REIT DIVIDEND .— 24
92+For purposes of clause (i)(I), the term 25
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95+•HR 33 IH
96+‘qualified REIT dividend’ means any divi-1
97+dend received from or paid by a real estate 2
98+investment trust if such dividend is paid 3
99+with respect to a class of shares that is 4
100+publicly traded and the recipient of the 5
101+dividend is a person who holds an interest 6
102+in any class of shares of the real estate in-7
103+vestment trust of not more than 5 percent. 8
86104 ‘‘(C) A
87-PPLICABLE PERCENTAGE .—For 18
88-purposes of applying subparagraph (A)(i)— 19
105+PPLICABLE PERCENTAGE .—For 9
106+purposes of applying subparagraph (A)(i)— 10
89107 ‘‘(i) I
90-N GENERAL.—Except as pro-20
91-vided in clause (ii), the term ‘applicable 21
92-percentage’ means 10 percent. 22
108+N GENERAL.—Except as pro-11
109+vided in clause (ii), the term ‘applicable 12
110+percentage’ means 10 percent. 13
93111 ‘‘(ii) S
94-PECIAL RULES FOR DIVI -23
95-DENDS.— In the case of any dividend in 24
96-respect of stock received by or paid to a 25 5
97-•HR 33 EH
98-qualified resident of Taiwan, the applicable 1
99-percentage shall be 15 percent (10 percent 2
100-in the case of a dividend which meets the 3
101-requirements of subparagraph (D) and is 4
102-received by or paid to an entity taxed as 5
103-a corporation in Taiwan). 6
112+PECIAL RULES FOR DIVI -14
113+DENDS.— In the case of any dividend in 15
114+respect of stock received by or paid to a 16
115+qualified resident of Taiwan, the applicable 17
116+percentage shall be 15 percent (10 percent 18
117+in the case of a dividend which meets the 19
118+requirements of subparagraph (D) and is 20
119+received by or paid to an entity taxed as 21
120+a corporation in Taiwan). 22
104121 ‘‘(D) R
105-EQUIREMENTS FOR LOWER DIVI -7
106-DEND RATE.— 8
122+EQUIREMENTS FOR LOWER DIVI -23
123+DEND RATE.— 24
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126+•HR 33 IH
127+‘‘(i) IN GENERAL.—The requirements 1
128+of this subparagraph are met with respect 2
129+to any dividend in respect of stock in a 3
130+corporation if, at all times during the 12- 4
131+month period ending on the date such 5
132+stock becomes ex-dividend with respect to 6
133+such dividend— 7
134+‘‘(I) the dividend is derived by a 8
135+qualified resident of Taiwan, and 9
136+‘‘(II) such qualified resident of 10
137+Taiwan has held directly at least 10 11
138+percent (by vote and value) of the 12
139+total outstanding shares of stock in 13
140+such corporation. 14
141+For purposes of subclause (II), a person 15
142+shall be treated as directly holding a share 16
143+of stock during any period described in the 17
144+preceding sentence if the share was held by 18
145+a corporation from which such person later 19
146+acquired that share and such corporation 20
147+was, at the time the share was acquired, 21
148+both a connected person to such person 22
149+and a qualified resident of Taiwan. 23
150+‘‘(ii) E
151+XCEPTION FOR RICS AND 24
152+REITS.—Notwithstanding clause (i), the re-25
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155+•HR 33 IH
156+quirements of this subparagraph shall not 1
157+be treated as met with respect to any divi-2
158+dend paid by a regulated investment com-3
159+pany or a real estate investment trust. 4
160+‘‘(2) Q
161+UALIFIED WAGES.— 5
162+‘‘(A) I
163+N GENERAL.—No tax shall be im-6
164+posed under this chapter (and no amount shall 7
165+be withheld under section 1441(a) or chapter 8
166+24) with respect to qualified wages paid to a 9
167+qualified resident of Taiwan who— 10
168+‘‘(i) is not a resident of the United 11
169+States (determined without regard to sub-12
170+section (c)(3)(E)), or 13
171+‘‘(ii) is employed as a member of the 14
172+regular component of a ship or aircraft op-15
173+erated in international traffic. 16
174+‘‘(B) Q
175+UALIFIED WAGES.— 17
107176 ‘‘(i) I
108-N GENERAL.—The requirements 9
109-of this subparagraph are met with respect 10
110-to any dividend in respect of stock in a 11
111-corporation if, at all times during the 12- 12
112-month period ending on the date such 13
113-stock becomes ex-dividend with respect to 14
114-such dividend— 15
115-‘‘(I) the dividend is derived by a 16
116-qualified resident of Taiwan, and 17
117-‘‘(II) such qualified resident of 18
118-Taiwan has held directly at least 10 19
119-percent (by vote and value) of the 20
120-total outstanding shares of stock in 21
121-such corporation. 22
122-For purposes of subclause (II), a person 23
123-shall be treated as directly holding a share 24
124-of stock during any period described in the 25 6
125-•HR 33 EH
126-preceding sentence if the share was held by 1
127-a corporation from which such person later 2
128-acquired that share and such corporation 3
129-was, at the time the share was acquired, 4
130-both a connected person to such person 5
131-and a qualified resident of Taiwan. 6
177+N GENERAL.—The term ‘quali-18
178+fied wages’ means wages, salaries, or simi-19
179+lar remunerations with respect to employ-20
180+ment involving the performance of personal 21
181+services within the United States which— 22
182+‘‘(I) are paid by (or on behalf of) 23
183+any employer other than a United 24
184+States person, and 25
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187+•HR 33 IH
188+‘‘(II) are not borne by a United 1
189+States permanent establishment of 2
190+any person other than a United States 3
191+person. 4
132192 ‘‘(ii) E
133-XCEPTION FOR RICS AND 7
134-REITS.—Notwithstanding clause (i), the re-8
135-quirements of this subparagraph shall not 9
136-be treated as met with respect to any divi-10
137-dend paid by a regulated investment com-11
138-pany or a real estate investment trust. 12
139-‘‘(2) Q
140-UALIFIED WAGES.— 13
193+XCEPTIONS.—Such term shall 5
194+not include directors’ fees, income derived 6
195+as an entertainer or athlete, income de-7
196+rived as a student or trainee, pensions, 8
197+amounts paid with respect to employment 9
198+with the United States, any State (or polit-10
199+ical subdivision thereof), or any possession 11
200+of the United States (or any political sub-12
201+division thereof), or other amounts speci-13
202+fied in regulations or guidance under sub-14
203+section (f)(1)(F). 15
204+‘‘(3) I
205+NCOME DERIVED FROM ENTERTAINMENT 16
206+OR ATHLETIC ACTIVITIES.— 17
141207 ‘‘(A) I
142-N GENERAL.—No tax shall be im-14
143-posed under this chapter (and no amount shall 15
144-be withheld under section 1441(a) or chapter 16
145-24) with respect to qualified wages paid to a 17
146-qualified resident of Taiwan who— 18
147-‘‘(i) is not a resident of the United 19
148-States (determined without regard to sub-20
149-section (c)(3)(E)), or 21
150-‘‘(ii) is employed as a member of the 22
151-regular component of a ship or aircraft op-23
152-erated in international traffic. 24
153-‘‘(B) Q
154-UALIFIED WAGES.— 25 7
155-•HR 33 EH
156-‘‘(i) IN GENERAL.—The term ‘quali-1
157-fied wages’ means wages, salaries, or simi-2
158-lar remunerations with respect to employ-3
159-ment involving the performance of personal 4
160-services within the United States which— 5
161-‘‘(I) are paid by (or on behalf of) 6
162-any employer other than a United 7
163-States person, and 8
164-‘‘(II) are not borne by a United 9
165-States permanent establishment of 10
166-any person other than a United States 11
167-person. 12
168-‘‘(ii) E
169-XCEPTIONS.—Such term shall 13
170-not include directors’ fees, income derived 14
171-as an entertainer or athlete, income de-15
172-rived as a student or trainee, pensions, 16
173-amounts paid with respect to employment 17
174-with the United States, any State (or polit-18
175-ical subdivision thereof), or any possession 19
176-of the United States (or any political sub-20
177-division thereof), or other amounts speci-21
178-fied in regulations or guidance under sub-22
179-section (f)(1)(F). 23
180-‘‘(3) I
181-NCOME DERIVED FROM ENTERTAINMENT 24
182-OR ATHLETIC ACTIVITIES.— 25 8
183-•HR 33 EH
184-‘‘(A) IN GENERAL.—No tax shall be im-1
185-posed under this chapter (and no amount shall 2
186-be withheld under section 1441(a) or chapter 3
187-24) with respect to income derived by an enter-4
188-tainer or athlete who is a qualified resident of 5
189-Taiwan from personal activities as such per-6
190-formed in the United States if the aggregate 7
191-amount of gross receipts from such activities 8
192-for the taxable year do not exceed $30,000. 9
208+N GENERAL.—No tax shall be im-18
209+posed under this chapter (and no amount shall 19
210+be withheld under section 1441(a) or chapter 20
211+24) with respect to income derived by an enter-21
212+tainer or athlete who is a qualified resident of 22
213+Taiwan from personal activities as such per-23
214+formed in the United States if the aggregate 24
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217+•HR 33 IH
218+amount of gross receipts from such activities 1
219+for the taxable year do not exceed $30,000. 2
193220 ‘‘(B) E
194-XCEPTION.—Subparagraph (A) 10
195-shall not apply with respect to— 11
196-‘‘(i) income which is qualified wages 12
197-(as defined in paragraph (2)(B), deter-13
198-mined without regard to clause (ii) there-14
199-of), or 15
200-‘‘(ii) income which is effectively con-16
201-nected with a United States permanent es-17
202-tablishment. 18
221+XCEPTION.—Subparagraph (A) 3
222+shall not apply with respect to— 4
223+‘‘(i) income which is qualified wages 5
224+(as defined in paragraph (2)(B), deter-6
225+mined without regard to clause (ii) there-7
226+of), or 8
227+‘‘(ii) income which is effectively con-9
228+nected with a United States permanent es-10
229+tablishment. 11
203230 ‘‘(b) I
204-NCOMECONNECTEDWITH AUNITEDSTATES 19
231+NCOMECONNECTEDWITH AUNITEDSTATES 12
205232 P
206-ERMANENT ESTABLISHMENT OF A QUALIFIEDRESI-20
207-DENT OFTAIWAN.— 21
233+ERMANENT ESTABLISHMENT OF A QUALIFIEDRESI-13
234+DENT OFTAIWAN.— 14
208235 ‘‘(1) I
209-N GENERAL.— 22
236+N GENERAL.— 15
210237 ‘‘(A) I
211-N GENERAL.—In lieu of applying 23
212-sections 871(b) and 882, a qualified resident of 24
213-Taiwan that carries on a trade or business 25 9
214-•HR 33 EH
215-within the United States through a United 1
216-States permanent establishment shall be taxable 2
217-as provided in section 1, 11, 55, or 59A, on its 3
218-taxable income which is effectively connected 4
219-with such permanent establishment. 5
238+N GENERAL.—In lieu of applying 16
239+sections 871(b) and 882, a qualified resident of 17
240+Taiwan that carries on a trade or business 18
241+within the United States through a United 19
242+States permanent establishment shall be taxable 20
243+as provided in section 1, 11, 55, or 59A, on its 21
244+taxable income which is effectively connected 22
245+with such permanent establishment. 23
220246 ‘‘(B) D
221-ETERMINATION OF TAXABLE IN -6
222-COME.—In determining taxable income for pur-7
223-poses of paragraph (1), gross income includes 8
224-only gross income which is effectively connected 9
225-with the permanent establishment. 10
247+ETERMINATION OF TAXABLE IN -24
248+COME.—In determining taxable income for pur-25
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251+•HR 33 IH
252+poses of paragraph (1), gross income includes 1
253+only gross income which is effectively connected 2
254+with the permanent establishment. 3
226255 ‘‘(2) T
227-REATMENT OF DISPOSITIONS OF UNITED 11
228-STATES REAL PROPERTY .—In the case of a qualified 12
229-resident of Taiwan, section 897(a) shall be applied— 13
230-‘‘(A) by substituting ‘carried on a trade or 14
231-business within the United States through a 15
232-United States permanent establishment’ for 16
233-‘were engaged in a trade or business within the 17
234-United States’, and 18
235-‘‘(B) by substituting ‘such United States 19
236-permanent establishment’ for ‘such trade or 20
237-business’. 21
256+REATMENT OF DISPOSITIONS OF UNITED 4
257+STATES REAL PROPERTY .—In the case of a qualified 5
258+resident of Taiwan, section 897(a) shall be applied— 6
259+‘‘(A) by substituting ‘carried on a trade or 7
260+business within the United States through a 8
261+United States permanent establishment’ for 9
262+‘were engaged in a trade or business within the 10
263+United States’, and 11
264+‘‘(B) by substituting ‘such United States 12
265+permanent establishment’ for ‘such trade or 13
266+business’. 14
238267 ‘‘(3) T
239-REATMENT OF BRANCH PROFITS 22
240-TAXES.—In the case of any corporation which is a 23
241-qualified resident of Taiwan, section 884 shall be ap-24
242-plied— 25 10
243-•HR 33 EH
244-‘‘(A) by substituting ‘10 percent’ for ‘30 1
245-percent’ in subsection (a) thereof, and 2
246-‘‘(B) by substituting ‘a United States per-3
247-manent establishment of a qualified resident of 4
248-Taiwan’ for ‘the conduct of a trade or business 5
249-within the United States’ in subsection (d)(1) 6
250-thereof. 7
251-‘‘(4) S
252-PECIAL RULE WITH RESPECT TO INCOME 8
253-DERIVED FROM CERTAIN ENTERTAINMENT OR ATH -9
254-LETIC ACTIVITIES.— 10
268+REATMENT OF BRANCH PROFITS 15
269+TAXES.—In the case of any corporation which is a 16
270+qualified resident of Taiwan, section 884 shall be ap-17
271+plied— 18
272+‘‘(A) by substituting ‘10 percent’ for ‘30 19
273+percent’ in subsection (a) thereof, and 20
274+‘‘(B) by substituting ‘a United States per-21
275+manent establishment of a qualified resident of 22
276+Taiwan’ for ‘the conduct of a trade or business 23
277+within the United States’ in subsection (d)(1) 24
278+thereof. 25
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282+‘‘(4) SPECIAL RULE WITH RESPECT TO INCOME 1
283+DERIVED FROM CERTAIN ENTERTAINMENT OR ATH -2
284+LETIC ACTIVITIES.— 3
255285 ‘‘(A) I
256-N GENERAL.—Paragraph (1) shall 11
257-not apply to the extent that the income is de-12
258-rived— 13
259-‘‘(i) in respect of entertainment or 14
260-athletic activities performed in the United 15
261-States, and 16
262-‘‘(ii) by a qualified resident of Taiwan 17
263-who is not the entertainer or athlete per-18
264-forming such activities. 19
286+N GENERAL.—Paragraph (1) shall 4
287+not apply to the extent that the income is de-5
288+rived— 6
289+‘‘(i) in respect of entertainment or 7
290+athletic activities performed in the United 8
291+States, and 9
292+‘‘(ii) by a qualified resident of Taiwan 10
293+who is not the entertainer or athlete per-11
294+forming such activities. 12
265295 ‘‘(B) E
266-XCEPTION.—Subparagraph (A) 20
267-shall not apply if the person described in sub-21
268-paragraph (A)(ii) is contractually authorized to 22
269-designate the individual who is to perform such 23
270-activities. 24 11
271-•HR 33 EH
272-‘‘(5) SPECIAL RULE WITH RESPECT TO CER -1
273-TAIN AMOUNTS.—Paragraph (1) shall not apply to 2
274-any income which is wages, salaries, or similar re-3
275-muneration with respect to employment or with re-4
276-spect to any amount which is described in subsection 5
277-(a)(2)(B)(ii). 6
296+XCEPTION.—Subparagraph (A) 13
297+shall not apply if the person described in sub-14
298+paragraph (A)(ii) is contractually authorized to 15
299+designate the individual who is to perform such 16
300+activities. 17
301+‘‘(5) S
302+PECIAL RULE WITH RESPECT TO CER -18
303+TAIN AMOUNTS.—Paragraph (1) shall not apply to 19
304+any income which is wages, salaries, or similar re-20
305+muneration with respect to employment or with re-21
306+spect to any amount which is described in subsection 22
307+(a)(2)(B)(ii). 23
278308 ‘‘(c) Q
279-UALIFIEDRESIDENT OFTAIWAN.—For pur-7
280-poses of this section— 8
309+UALIFIEDRESIDENT OFTAIWAN.—For pur-24
310+poses of this section— 25
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313+•HR 33 IH
314+‘‘(1) IN GENERAL.—The term ‘qualified resi-1
315+dent of Taiwan’ means any person who— 2
316+‘‘(A) is liable to tax under the laws of Tai-3
317+wan by reason of such person’s domicile, resi-4
318+dence, place of management, place of incorpora-5
319+tion, or any similar criterion, 6
320+‘‘(B) is not a United States person (deter-7
321+mined without regard to paragraph (3)(E)), 8
322+and 9
323+‘‘(C) in the case of an entity taxed as a 10
324+corporation in Taiwan, meets the requirements 11
325+of paragraph (2). 12
326+‘‘(2) L
327+IMITATION ON BENEFITS FOR COR -13
328+PORATE ENTITIES OF TAIWAN .— 14
329+‘‘(A) I
330+N GENERAL.—Subject to subpara-15
331+graphs (E) and (F), an entity meets the re-16
332+quirements of this paragraph only if it— 17
333+‘‘(i) meets the ownership and income 18
334+requirements of subparagraph (B), 19
335+‘‘(ii) meets the publicly traded re-20
336+quirements of subparagraph (C), or 21
337+‘‘(iii) meets the qualified subsidiary 22
338+requirements of subparagraph (D). 23
339+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
340+ssavage on LAPJG3WLY3PROD with BILLS 12
341+•HR 33 IH
342+‘‘(B) OWNERSHIP AND INCOME REQUIRE -1
343+MENTS.—The requirements of this subpara-2
344+graph are met for an entity if— 3
345+‘‘(i) at least 50 percent (by vote and 4
346+value) of the total outstanding shares of 5
347+stock in such entity are owned directly or 6
348+indirectly by qualified residents of Taiwan, 7
349+and 8
350+‘‘(ii) less than 50 percent of such enti-9
351+ty’s gross income (and in the case of an 10
352+entity that is a member of a tested group, 11
353+less than 50 percent of the tested group’s 12
354+gross income) is paid or accrued, directly 13
355+or indirectly, in the form of payments that 14
356+are deductible for purposes of the income 15
357+taxes imposed by Taiwan, to persons who 16
358+are not— 17
359+‘‘(I) qualified residents of Tai-18
360+wan, or 19
361+‘‘(II) United States persons who 20
362+meet such requirements with respect 21
363+to the United States as determined by 22
364+the Secretary to be equivalent to the 23
365+requirements of this subsection (deter-24
366+mined without regard to paragraph 25
367+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
368+ssavage on LAPJG3WLY3PROD with BILLS 13
369+•HR 33 IH
370+(1)(B)) with respect to residents of 1
371+Taiwan. 2
372+‘‘(C) P
373+UBLICLY TRADED REQUIRE -3
374+MENTS.—An entity meets the requirements of 4
375+this subparagraph if— 5
376+‘‘(i) the principal class of its shares 6
377+(and any disproportionate class of shares) 7
378+of such entity are primarily and regularly 8
379+traded on an established securities market 9
380+in Taiwan, or 10
381+‘‘(ii) the primary place of manage-11
382+ment and control of the entity is in Taiwan 12
383+and all classes of its outstanding shares 13
384+described in clause (i) are regularly traded 14
385+on an established securities market in Tai-15
386+wan. 16
387+‘‘(D) Q
388+UALIFIED SUBSIDIARY REQUIRE -17
389+MENTS.—An entity meets the requirement of 18
390+this subparagraph if— 19
391+‘‘(i) at least 50 percent (by vote and 20
392+value) of the total outstanding shares of 21
393+the stock of such entity are owned directly 22
394+or indirectly by 5 or fewer entities— 23
395+‘‘(I) which meet the requirements 24
396+of subparagraph (C), or 25
397+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
398+ssavage on LAPJG3WLY3PROD with BILLS 14
399+•HR 33 IH
400+‘‘(II) which are United States 1
401+persons the principal class of the 2
402+shares (and any disproportionate class 3
403+of shares) of which are primarily and 4
404+regularly traded on an established se-5
405+curities market in the United States, 6
406+and 7
407+‘‘(ii) the entity meets the require-8
408+ments of clause (ii) of subparagraph (B). 9
409+‘‘(E) O
410+NLY INDIRECT OWNERSHIP 10
411+THROUGH QUALIFYING INTERMEDIARIES 11
412+COUNTED.— 12
413+‘‘(i) I
414+N GENERAL.—Stock in an entity 13
415+owned by a person indirectly through 1 or 14
416+more other persons shall not be treated as 15
417+owned by such person in determining 16
418+whether the person meets the requirements 17
419+of subparagraph (B)(i) or (D)(i) unless all 18
420+such other persons are qualifying inter-19
421+mediate owners. 20
422+‘‘(ii) Q
423+UALIFYING INTERMEDIATE 21
424+OWNERS.—The term ‘qualifying inter-22
425+mediate owner’ means a person that is— 23
426+‘‘(I) a qualified resident of Tai-24
427+wan, or 25
428+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
429+ssavage on LAPJG3WLY3PROD with BILLS 15
430+•HR 33 IH
431+‘‘(II) a resident of any other for-1
432+eign country (other than a foreign 2
433+country that is a foreign country of 3
434+concern) that has in effect a com-4
435+prehensive convention with the United 5
436+States for the avoidance of double tax-6
437+ation. 7
438+‘‘(iii) S
439+PECIAL RULE FOR QUALIFIED 8
440+SUBSIDIARIES.—For purposes of applying 9
441+subparagraph (D)(i), the term ‘qualifying 10
442+intermediate owner’ shall include any per-11
443+son who is a United States person who 12
444+meets such requirements with respect to 13
445+the United States as determined by the 14
446+Secretary to be equivalent to the require-15
447+ments of this subsection (determined with-16
448+out regard to paragraph (1)(B)) with re-17
449+spect to residents of Taiwan. 18
450+‘‘(F) C
451+ERTAIN PAYMENTS NOT IN -19
452+CLUDED.—In determining whether the require-20
453+ments of subparagraph (B)(ii) or (D)(ii) are 21
454+met with respect to an entity, the following pay-22
455+ments shall not be taken into account: 23
456+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
457+ssavage on LAPJG3WLY3PROD with BILLS 16
458+•HR 33 IH
459+‘‘(i) Arm’s-length payments by the en-1
460+tity in the ordinary course of business for 2
461+services or tangible property. 3
462+‘‘(ii) In the case of a tested group, 4
463+intra-group transactions. 5
464+‘‘(3) D
465+UAL RESIDENTS.— 6
466+‘‘(A) R
467+ULES FOR DETERMINATION OF STA -7
468+TUS.— 8
469+‘‘(i) I
470+N GENERAL.—An individual who 9
471+is an applicable dual resident and who is 10
472+described in subparagraph (B), (C), or (D) 11
473+shall be treated as a qualified resident of 12
474+Taiwan. 13
475+‘‘(ii) A
476+PPLICABLE DUAL RESIDENT .— 14
477+For purposes of this paragraph, the term 15
478+‘applicable dual resident’ means an indi-16
479+vidual who— 17
480+‘‘(I) is not a United States cit-18
481+izen, 19
482+‘‘(II) is a resident of the United 20
483+States (determined without regard to 21
484+subparagraph (E)), and 22
485+‘‘(III) would be a qualified resi-23
486+dent of Taiwan but for paragraph 24
487+(1)(B). 25
488+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
489+ssavage on LAPJG3WLY3PROD with BILLS 17
490+•HR 33 IH
491+‘‘(B) PERMANENT HOME .—An individual 1
492+is described in this subparagraph if such indi-2
493+vidual— 3
494+‘‘(i) has a permanent home available 4
495+to such individual in Taiwan, and 5
496+‘‘(ii) does not have a permanent home 6
497+available to such individual in the United 7
498+States. 8
499+‘‘(C) C
500+ENTER OF VITAL INTERESTS .—An 9
501+individual is described in this subparagraph if— 10
502+‘‘(i) such individual has a permanent 11
503+home available to such individual in both 12
504+Taiwan and the United States, and 13
505+‘‘(ii) such individual’s personal and 14
506+economic relations (center of vital inter-15
507+ests) are closer to Taiwan than to the 16
508+United States. 17
509+‘‘(D) H
510+ABITUAL ABODE.—An individual is 18
511+described in this subparagraph if— 19
512+‘‘(i) such individual— 20
513+‘‘(I) does not have a permanent 21
514+home available to such individual in 22
515+either Taiwan or the United States, or 23
516+‘‘(II) has a permanent home 24
517+available to such individual in both 25
518+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
519+ssavage on LAPJG3WLY3PROD with BILLS 18
520+•HR 33 IH
521+Taiwan and the United States but 1
522+such individual’s center of vital inter-2
523+ests under subparagraph (C)(ii) can-3
524+not be determined, and 4
525+‘‘(ii) such individual has a habitual 5
526+abode in Taiwan and not the United 6
527+States. 7
528+‘‘(E) U
529+NITED STATES TAX TREATMENT OF 8
530+QUALIFIED RESIDENT OF TAIWAN .—Notwith-9
531+standing section 7701, an individual who is 10
532+treated as a qualified resident of Taiwan by 11
533+reason of this paragraph for all or any portion 12
534+of a taxable year shall not be treated as a resi-13
535+dent of the United States for purposes of com-14
536+puting such individual’s United States income 15
537+tax liability for such taxable year or portion 16
538+thereof. 17
539+‘‘(4) R
540+ULES OF SPECIAL APPLICATION .— 18
541+‘‘(A) D
542+IVIDENDS.—For purposes of apply-19
543+ing this section to any dividend, paragraph 20
544+(2)(D) shall be applied without regard to clause 21
545+(ii) thereof. 22
546+‘‘(B) I
547+TEMS OF INCOME EMANATING FROM 23
548+AN ACTIVE TRADE OR BUSINESS IN TAIWAN .— 24
549+For purposes of this section— 25
550+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
551+ssavage on LAPJG3WLY3PROD with BILLS 19
552+•HR 33 IH
553+‘‘(i) IN GENERAL.—Notwithstanding 1
554+the preceding paragraphs of this sub-2
555+section, if an entity taxed as a corporation 3
556+in Taiwan is not a qualified resident of 4
557+Taiwan but meets the requirements of sub-5
558+paragraphs (A) and (B) of paragraph (1), 6
559+any qualified item of income such entity 7
560+derived from the United States shall be 8
561+treated as income of a qualified resident of 9
562+Taiwan. 10
563+‘‘(ii) Q
564+UALIFIED ITEMS OF INCOME .— 11
565+‘‘(I) I
566+N GENERAL.—The term 12
567+‘qualified item of income’ means any 13
568+item of income which emanates from, 14
569+or is incidental to, the conduct of an 15
570+active trade or business in Taiwan 16
571+(other than operating as a holding 17
572+company, providing overall supervision 18
573+or administration of a group of com-19
574+panies, providing group financing, or 20
575+making or managing investments (un-21
576+less such making or managing invest-22
577+ments is carried on by a bank, insur-23
578+ance company, or registered securities 24
579+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
580+ssavage on LAPJG3WLY3PROD with BILLS 20
581+•HR 33 IH
582+dealer in the ordinary course of its 1
583+business as such)). 2
584+‘‘(II) S
585+UBSTANTIAL ACTIVITY RE-3
586+QUIREMENT.—An item of income 4
587+which is derived from a trade or busi-5
588+ness conducted in the United States 6
589+or from a connected person shall be a 7
590+qualified item of income only if the 8
591+trade or business activity conducted in 9
592+Taiwan to which the item is related is 10
593+substantial in relation to the same or 11
594+a complementary trade or business ac-12
595+tivity carried on in the United States. 13
596+For purposes of applying this sub-14
597+clause, activities conducted by persons 15
598+that are connected to the entity de-16
599+scribed in clause (i) shall be deemed 17
600+to be conducted by such entity. 18
601+‘‘(iii) E
602+XCEPTION.—This subpara-19
603+graph shall not apply to any item of in-20
604+come derived by an entity if at least 50 21
605+percent (by vote or value) of such entity is 22
606+owned (directly or indirectly) or controlled 23
607+by residents of a foreign country of con-24
608+cern. 25
609+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
610+ssavage on LAPJG3WLY3PROD with BILLS 21
611+•HR 33 IH
612+‘‘(d) OTHERDEFINITIONS ANDSPECIALRULES.— 1
613+For purposes of this section— 2
614+‘‘(1) U
615+NITED STATES PERMANENT ESTABLISH -3
616+MENT.— 4
617+‘‘(A) I
618+N GENERAL.—The term ‘United 5
619+States permanent establishment’ means, with 6
620+respect to a qualified resident of Taiwan, a per-7
621+manent establishment of such resident which is 8
622+within the United States. 9
623+‘‘(B) S
624+PECIAL RULE.—The determination 10
625+of whether there is a permanent establishment 11
626+of a qualified resident of Taiwan within the 12
627+United States shall be made without regard to 13
628+whether an entity which is taxed as a corpora-14
629+tion in Taiwan and which is a qualified resident 15
630+of Taiwan controls or is controlled by— 16
631+‘‘(i) a domestic corporation, or 17
632+‘‘(ii) any other person that carries on 18
633+business in the United States (whether 19
634+through a permanent establishment or oth-20
635+erwise). 21
636+‘‘(2) P
637+ERMANENT ESTABLISHMENT .— 22
638+‘‘(A) I
639+N GENERAL.—The term ‘permanent 23
640+establishment’ means a fixed place of business 24
641+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
642+ssavage on LAPJG3WLY3PROD with BILLS 22
643+•HR 33 IH
644+through which a trade or business is wholly or 1
645+partly carried on. Such term shall include— 2
646+‘‘(i) a place of management, 3
647+‘‘(ii) a branch, 4
648+‘‘(iii) an office, 5
649+‘‘(iv) a factory, 6
650+‘‘(v) a workshop, and 7
651+‘‘(vi) a mine, an oil or gas well, a 8
652+quarry, or any other place of extraction of 9
653+natural resources. 10
654+‘‘(B) S
655+PECIAL RULES FOR CERTAIN TEM -11
656+PORARY PROJECTS.— 12
657+‘‘(i) I
658+N GENERAL.—A building site or 13
659+construction or installation project, or an 14
660+installation or drilling rig or ship used for 15
661+the exploration or exploitation of the sea 16
662+bed and its subsoil and their natural re-17
663+sources, constitutes a permanent establish-18
664+ment only if it lasts, or the activities of the 19
665+rig or ship lasts, for more than 12 months. 20
666+‘‘(ii) D
667+ETERMINATION OF 12 -MONTH 21
668+PERIOD.—For purposes of clause (i), the 22
669+period over which a building site or con-23
670+struction or installation project of a person 24
671+lasts shall include any period of more than 25
672+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
673+ssavage on LAPJG3WLY3PROD with BILLS 23
674+•HR 33 IH
675+30 days during which such person does not 1
676+carry on activities at such building site or 2
677+construction or installation project but 3
678+connected activities are carried on at such 4
679+building site or construction or installation 5
680+project by one or more connected persons. 6
681+‘‘(C) H
682+ABITUAL EXERCISE OF CONTRACT 7
683+AUTHORITY TREATED AS PERMANENT ESTAB -8
684+LISHMENT.—Notwithstanding subparagraphs 9
685+(A) and (B), where a person (other than an 10
686+agent of an independent status to whom sub-11
687+paragraph (D)(ii) applies) is acting on behalf of 12
688+a trade or business of a qualified resident of 13
689+Taiwan and has and habitually exercises an au-14
690+thority to conclude contracts that are binding 15
691+on the trade or business, that trade or business 16
692+shall be deemed to have a permanent establish-17
693+ment in the country in which such authority is 18
694+exercised in respect of any activities that the 19
695+person undertakes for the trade or business, un-20
696+less the activities of such person are limited to 21
697+those described in subparagraph (D)(i) that, if 22
698+exercised through a fixed place of business, 23
699+would not make this fixed place of business a 24
700+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
701+ssavage on LAPJG3WLY3PROD with BILLS 24
702+•HR 33 IH
703+permanent establishment under the provisions 1
704+of that subparagraph. 2
705+‘‘(D) E
706+XCLUSIONS.— 3
707+‘‘(i) I
708+N GENERAL.—Notwithstanding 4
709+subparagraphs (A) and (B), the term ‘per-5
710+manent establishment’ shall not include— 6
711+‘‘(I) the use of facilities solely for 7
712+the purpose of storage, display, or de-8
713+livery of goods or merchandise belong-9
714+ing to the trade or business, 10
715+‘‘(II) the maintenance of a stock 11
716+of goods or merchandise belonging to 12
717+the trade or business solely for the 13
718+purpose of storage, display, or deliv-14
719+ery, 15
720+‘‘(III) the maintenance of a stock 16
721+of goods or merchandise belonging to 17
722+the trade or business solely for the 18
723+purpose of processing by another 19
724+trade or business, 20
725+‘‘(IV) the maintenance of a fixed 21
726+place of business solely for the pur-22
727+pose of purchasing goods or merchan-23
728+dise, or of collecting information, for 24
729+the trade or business, 25
730+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
731+ssavage on LAPJG3WLY3PROD with BILLS 25
732+•HR 33 IH
733+‘‘(V) the maintenance of a fixed 1
734+place of business solely for the pur-2
735+pose of carrying on, for the trade or 3
736+business, any other activity of a pre-4
737+paratory or auxiliary character, or 5
738+‘‘(VI) the maintenance of a fixed 6
739+place of business solely for any com-7
740+bination of the activities mentioned in 8
741+subclauses (I) through (V), provided 9
742+that the overall activity of the fixed 10
743+place of business resulting from this 11
744+combination is of a preparatory or 12
745+auxiliary character. 13
746+‘‘(ii) B
747+ROKERS AND OTHER INDE -14
748+PENDENT AGENTS .—A trade or business 15
749+shall not be considered to have a perma-16
750+nent establishment in a country merely be-17
751+cause it carries on business in such coun-18
752+try through a broker, general commission 19
753+agent, or any other agent of an inde-20
754+pendent status, provided that such persons 21
755+are acting in the ordinary course of their 22
756+business as independent agents. 23
757+‘‘(3) T
758+ESTED GROUP.—The term ‘tested group’ 24
759+includes, with respect to any entity taxed as a cor-25
760+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
761+ssavage on LAPJG3WLY3PROD with BILLS 26
762+•HR 33 IH
763+poration in Taiwan, such entity and any other entity 1
764+taxed as a corporation in Taiwan that— 2
765+‘‘(A) participates as a member with such 3
766+entity in a tax consolidation, fiscal unity, or 4
767+similar regime that requires members of the 5
768+group to share profits or losses, or 6
769+‘‘(B) shares losses with such entity pursu-7
770+ant to a group relief or other loss sharing re-8
771+gime. 9
772+‘‘(4) C
773+ONNECTED PERSON .—Two persons shall 10
774+be ‘connected persons’ if one owns, directly or indi-11
775+rectly, at least 50 percent of the interests in the 12
776+other (or, in the case of a corporation, at least 50 13
777+percent of the aggregate vote and value of the cor-14
778+poration’s shares) or another person owns, directly 15
779+or indirectly, at least 50 percent of the interests (or, 16
780+in the case of a corporation, at least 50 percent of 17
781+the aggregate vote and value of the corporation’s 18
782+shares) in each person. In any case, a person shall 19
783+be connected to another if, based on all the relevant 20
784+facts and circumstances, one has control of the other 21
785+or both are under the control of the same person or 22
786+persons. 23
787+‘‘(5) F
788+OREIGN COUNTRY OF CONCERN .—The 24
789+term ‘foreign country of concern’ has the meaning 25
790+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
791+ssavage on LAPJG3WLY3PROD with BILLS 27
792+•HR 33 IH
793+given such term under paragraph (7) of section 1
794+9901 of the William M. (Mac) Thornberry National 2
795+Defense Authorization Act for Fiscal Year 2021 (15 3
796+U.S.C. 4651(7)), as added by section 103(a)(4) of 4
797+the CHIPS Act of 2022). 5
798+‘‘(6) P
799+ARTNERSHIPS; BENEFICIARIES OF ES -6
800+TATES AND TRUSTS.—For purposes of this section— 7
801+‘‘(A) a qualified resident of Taiwan which 8
802+is a partner of a partnership which carries on 9
803+a trade or business within the United States 10
804+through a United States permanent establish-11
805+ment shall be treated as carrying on such trade 12
806+or business through such permanent establish-13
807+ment, and 14
808+‘‘(B) a qualified resident of Taiwan which 15
809+is a beneficiary of an estate or trust which car-16
810+ries on a trade or business within the United 17
811+States through a United States permanent es-18
812+tablishment shall be treated as carrying on such 19
813+trade or business through such permanent es-20
814+tablishment. 21
815+‘‘(7) D
816+ENIAL OF BENEFITS FOR CERTAIN PAY -22
817+MENTS THROUGH HYBRID ENTITIES .—For purposes 23
818+of this section, rules similar to the rules of section 24
819+894(c) shall apply. 25
820+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
821+ssavage on LAPJG3WLY3PROD with BILLS 28
822+•HR 33 IH
823+‘‘(e) APPLICATION.— 1
281824 ‘‘(1) I
282-N GENERAL.—The term ‘qualified resi-9
283-dent of Taiwan’ means any person who— 10
284-‘‘(A) is liable to tax under the laws of Tai-11
285-wan by reason of such person’s domicile, resi-12
286-dence, place of management, place of incorpora-13
287-tion, or any similar criterion, 14
288-‘‘(B) is not a United States person (deter-15
289-mined without regard to paragraph (3)(E)), 16
290-and 17
291-‘‘(C) in the case of an entity taxed as a 18
292-corporation in Taiwan, meets the requirements 19
293-of paragraph (2). 20
294-‘‘(2) L
295-IMITATION ON BENEFITS FOR COR -21
296-PORATE ENTITIES OF TAIWAN .— 22
297-‘‘(A) I
298-N GENERAL.—Subject to subpara-23
299-graphs (E) and (F), an entity meets the re-24
300-quirements of this paragraph only if it— 25 12
301-•HR 33 EH
302-‘‘(i) meets the ownership and income 1
303-requirements of subparagraph (B), 2
304-‘‘(ii) meets the publicly traded re-3
305-quirements of subparagraph (C), or 4
306-‘‘(iii) meets the qualified subsidiary 5
307-requirements of subparagraph (D). 6
308-‘‘(B) O
309-WNERSHIP AND INCOME REQUIRE -7
310-MENTS.—The requirements of this subpara-8
311-graph are met for an entity if— 9
312-‘‘(i) at least 50 percent (by vote and 10
313-value) of the total outstanding shares of 11
314-stock in such entity are owned directly or 12
315-indirectly by qualified residents of Taiwan, 13
316-and 14
317-‘‘(ii) less than 50 percent of such enti-15
318-ty’s gross income (and in the case of an 16
319-entity that is a member of a tested group, 17
320-less than 50 percent of the tested group’s 18
321-gross income) is paid or accrued, directly 19
322-or indirectly, in the form of payments that 20
323-are deductible for purposes of the income 21
324-taxes imposed by Taiwan, to persons who 22
325-are not— 23
326-‘‘(I) qualified residents of Tai-24
327-wan, or 25 13
328-•HR 33 EH
329-‘‘(II) United States persons who 1
330-meet such requirements with respect 2
331-to the United States as determined by 3
332-the Secretary to be equivalent to the 4
333-requirements of this subsection (deter-5
334-mined without regard to paragraph 6
335-(1)(B)) with respect to residents of 7
336-Taiwan. 8
337-‘‘(C) P
338-UBLICLY TRADED REQUIRE -9
339-MENTS.—An entity meets the requirements of 10
340-this subparagraph if— 11
341-‘‘(i) the principal class of its shares 12
342-(and any disproportionate class of shares) 13
343-of such entity are primarily and regularly 14
344-traded on an established securities market 15
345-in Taiwan, or 16
346-‘‘(ii) the primary place of manage-17
347-ment and control of the entity is in Taiwan 18
348-and all classes of its outstanding shares 19
349-described in clause (i) are regularly traded 20
350-on an established securities market in Tai-21
351-wan. 22
352-‘‘(D) Q
353-UALIFIED SUBSIDIARY REQUIRE -23
354-MENTS.—An entity meets the requirement of 24
355-this subparagraph if— 25 14
356-•HR 33 EH
357-‘‘(i) at least 50 percent (by vote and 1
358-value) of the total outstanding shares of 2
359-the stock of such entity are owned directly 3
360-or indirectly by 5 or fewer entities— 4
361-‘‘(I) which meet the requirements 5
362-of subparagraph (C), or 6
363-‘‘(II) which are United States 7
364-persons the principal class of the 8
365-shares (and any disproportionate class 9
366-of shares) of which are primarily and 10
367-regularly traded on an established se-11
368-curities market in the United States, 12
369-and 13
370-‘‘(ii) the entity meets the require-14
371-ments of clause (ii) of subparagraph (B). 15
372-‘‘(E) O
373-NLY INDIRECT OWNERSHIP 16
374-THROUGH QUALIFYING INTERMEDIARIES 17
375-COUNTED.— 18
376-‘‘(i) I
377-N GENERAL.—Stock in an entity 19
378-owned by a person indirectly through 1 or 20
379-more other persons shall not be treated as 21
380-owned by such person in determining 22
381-whether the person meets the requirements 23
382-of subparagraph (B)(i) or (D)(i) unless all 24 15
383-•HR 33 EH
384-such other persons are qualifying inter-1
385-mediate owners. 2
386-‘‘(ii) Q
387-UALIFYING INTERMEDIATE 3
388-OWNERS.—The term ‘qualifying inter-4
389-mediate owner’ means a person that is— 5
390-‘‘(I) a qualified resident of Tai-6
391-wan, or 7
392-‘‘(II) a resident of any other for-8
393-eign country (other than a foreign 9
394-country that is a foreign country of 10
395-concern) that has in effect a com-11
396-prehensive convention with the United 12
397-States for the avoidance of double tax-13
398-ation. 14
399-‘‘(iii) S
400-PECIAL RULE FOR QUALIFIED 15
401-SUBSIDIARIES.—For purposes of applying 16
402-subparagraph (D)(i), the term ‘qualifying 17
403-intermediate owner’ shall include any per-18
404-son who is a United States person who 19
405-meets such requirements with respect to 20
406-the United States as determined by the 21
407-Secretary to be equivalent to the require-22
408-ments of this subsection (determined with-23
409-out regard to paragraph (1)(B)) with re-24
410-spect to residents of Taiwan. 25 16
411-•HR 33 EH
412-‘‘(F) CERTAIN PAYMENTS NOT IN -1
413-CLUDED.—In determining whether the require-2
414-ments of subparagraph (B)(ii) or (D)(ii) are 3
415-met with respect to an entity, the following pay-4
416-ments shall not be taken into account: 5
417-‘‘(i) Arm’s-length payments by the en-6
418-tity in the ordinary course of business for 7
419-services or tangible property. 8
420-‘‘(ii) In the case of a tested group, 9
421-intra-group transactions. 10
422-‘‘(3) D
423-UAL RESIDENTS.— 11
424-‘‘(A) R
425-ULES FOR DETERMINATION OF STA -12
426-TUS.— 13
427-‘‘(i) I
428-N GENERAL.—An individual who 14
429-is an applicable dual resident and who is 15
430-described in subparagraph (B), (C), or (D) 16
431-shall be treated as a qualified resident of 17
432-Taiwan. 18
433-‘‘(ii) A
434-PPLICABLE DUAL RESIDENT .— 19
435-For purposes of this paragraph, the term 20
436-‘applicable dual resident’ means an indi-21
437-vidual who— 22
438-‘‘(I) is not a United States cit-23
439-izen, 24 17
440-•HR 33 EH
441-‘‘(II) is a resident of the United 1
442-States (determined without regard to 2
443-subparagraph (E)), and 3
444-‘‘(III) would be a qualified resi-4
445-dent of Taiwan but for paragraph 5
446-(1)(B). 6
447-‘‘(B) P
448-ERMANENT HOME .—An individual 7
449-is described in this subparagraph if such indi-8
450-vidual— 9
451-‘‘(i) has a permanent home available 10
452-to such individual in Taiwan, and 11
453-‘‘(ii) does not have a permanent home 12
454-available to such individual in the United 13
455-States. 14
456-‘‘(C) C
457-ENTER OF VITAL INTERESTS .—An 15
458-individual is described in this subparagraph if— 16
459-‘‘(i) such individual has a permanent 17
460-home available to such individual in both 18
461-Taiwan and the United States, and 19
462-‘‘(ii) such individual’s personal and 20
463-economic relations (center of vital inter-21
464-ests) are closer to Taiwan than to the 22
465-United States. 23
466-‘‘(D) H
467-ABITUAL ABODE.—An individual is 24
468-described in this subparagraph if— 25 18
469-•HR 33 EH
470-‘‘(i) such individual— 1
471-‘‘(I) does not have a permanent 2
472-home available to such individual in 3
473-either Taiwan or the United States, or 4
474-‘‘(II) has a permanent home 5
475-available to such individual in both 6
476-Taiwan and the United States but 7
477-such individual’s center of vital inter-8
478-ests under subparagraph (C)(ii) can-9
479-not be determined, and 10
480-‘‘(ii) such individual has a habitual 11
481-abode in Taiwan and not the United 12
482-States. 13
483-‘‘(E) U
484-NITED STATES TAX TREATMENT OF 14
485-QUALIFIED RESIDENT OF TAIWAN .—Notwith-15
486-standing section 7701, an individual who is 16
487-treated as a qualified resident of Taiwan by 17
488-reason of this paragraph for all or any portion 18
489-of a taxable year shall not be treated as a resi-19
490-dent of the United States for purposes of com-20
491-puting such individual’s United States income 21
492-tax liability for such taxable year or portion 22
493-thereof. 23
494-‘‘(4) R
495-ULES OF SPECIAL APPLICATION .— 24 19
496-•HR 33 EH
497-‘‘(A) DIVIDENDS.—For purposes of apply-1
498-ing this section to any dividend, paragraph 2
499-(2)(D) shall be applied without regard to clause 3
500-(ii) thereof. 4
501-‘‘(B) I
502-TEMS OF INCOME EMANATING FROM 5
503-AN ACTIVE TRADE OR BUSINESS IN TAIWAN .— 6
504-For purposes of this section— 7
505-‘‘(i) I
506-N GENERAL.—Notwithstanding 8
507-the preceding paragraphs of this sub-9
508-section, if an entity taxed as a corporation 10
509-in Taiwan is not a qualified resident of 11
510-Taiwan but meets the requirements of sub-12
511-paragraphs (A) and (B) of paragraph (1), 13
512-any qualified item of income such entity 14
513-derived from the United States shall be 15
514-treated as income of a qualified resident of 16
515-Taiwan. 17
516-‘‘(ii) Q
517-UALIFIED ITEMS OF INCOME .— 18
518-‘‘(I) I
519-N GENERAL.—The term 19
520-‘qualified item of income’ means any 20
521-item of income which emanates from, 21
522-or is incidental to, the conduct of an 22
523-active trade or business in Taiwan 23
524-(other than operating as a holding 24
525-company, providing overall supervision 25 20
526-•HR 33 EH
527-or administration of a group of com-1
528-panies, providing group financing, or 2
529-making or managing investments (un-3
530-less such making or managing invest-4
531-ments is carried on by a bank, insur-5
532-ance company, or registered securities 6
533-dealer in the ordinary course of its 7
534-business as such)). 8
535-‘‘(II) S
536-UBSTANTIAL ACTIVITY RE-9
537-QUIREMENT.—An item of income 10
538-which is derived from a trade or busi-11
539-ness conducted in the United States 12
540-or from a connected person shall be a 13
541-qualified item of income only if the 14
542-trade or business activity conducted in 15
543-Taiwan to which the item is related is 16
544-substantial in relation to the same or 17
545-a complementary trade or business ac-18
546-tivity carried on in the United States. 19
547-For purposes of applying this sub-20
548-clause, activities conducted by persons 21
549-that are connected to the entity de-22
550-scribed in clause (i) shall be deemed 23
551-to be conducted by such entity. 24 21
552-•HR 33 EH
553-‘‘(iii) EXCEPTION.—This subpara-1
554-graph shall not apply to any item of in-2
555-come derived by an entity if at least 50 3
556-percent (by vote or value) of such entity is 4
557-owned (directly or indirectly) or controlled 5
558-by residents of a foreign country of con-6
559-cern. 7
560-‘‘(d) O
561-THERDEFINITIONS ANDSPECIALRULES.— 8
562-For purposes of this section— 9
563-‘‘(1) U
564-NITED STATES PERMANENT ESTABLISH -10
565-MENT.— 11
566-‘‘(A) I
567-N GENERAL.—The term ‘United 12
568-States permanent establishment’ means, with 13
569-respect to a qualified resident of Taiwan, a per-14
570-manent establishment of such resident which is 15
571-within the United States. 16
572-‘‘(B) S
573-PECIAL RULE.—The determination 17
574-of whether there is a permanent establishment 18
575-of a qualified resident of Taiwan within the 19
576-United States shall be made without regard to 20
577-whether an entity which is taxed as a corpora-21
578-tion in Taiwan and which is a qualified resident 22
579-of Taiwan controls or is controlled by— 23
580-‘‘(i) a domestic corporation, or 24 22
581-•HR 33 EH
582-‘‘(ii) any other person that carries on 1
583-business in the United States (whether 2
584-through a permanent establishment or oth-3
585-erwise). 4
825+N GENERAL.—This section shall not apply 2
826+to any period unless the Secretary has determined 3
827+that Taiwan has provided benefits to United States 4
828+persons for such period that are reciprocal to the 5
829+benefits provided to qualified residents of Taiwan 6
830+under this section. 7
586831 ‘‘(2) P
587-ERMANENT ESTABLISHMENT .— 5
588-‘‘(A) I
589-N GENERAL.—The term ‘permanent 6
590-establishment’ means a fixed place of business 7
591-through which a trade or business is wholly or 8
592-partly carried on. Such term shall include— 9
593-‘‘(i) a place of management, 10
594-‘‘(ii) a branch, 11
595-‘‘(iii) an office, 12
596-‘‘(iv) a factory, 13
597-‘‘(v) a workshop, and 14
598-‘‘(vi) a mine, an oil or gas well, a 15
599-quarry, or any other place of extraction of 16
600-natural resources. 17
601-‘‘(B) S
602-PECIAL RULES FOR CERTAIN TEM -18
603-PORARY PROJECTS.— 19
604-‘‘(i) I
605-N GENERAL.—A building site or 20
606-construction or installation project, or an 21
607-installation or drilling rig or ship used for 22
608-the exploration or exploitation of the sea 23
609-bed and its subsoil and their natural re-24
610-sources, constitutes a permanent establish-25 23
611-•HR 33 EH
612-ment only if it lasts, or the activities of the 1
613-rig or ship lasts, for more than 12 months. 2
614-‘‘(ii) D
615-ETERMINATION OF 12 -MONTH 3
616-PERIOD.—For purposes of clause (i), the 4
617-period over which a building site or con-5
618-struction or installation project of a person 6
619-lasts shall include any period of more than 7
620-30 days during which such person does not 8
621-carry on activities at such building site or 9
622-construction or installation project but 10
623-connected activities are carried on at such 11
624-building site or construction or installation 12
625-project by one or more connected persons. 13
626-‘‘(C) H
627-ABITUAL EXERCISE OF CONTRACT 14
628-AUTHORITY TREATED AS PERMANENT ESTAB -15
629-LISHMENT.—Notwithstanding subparagraphs 16
630-(A) and (B), where a person (other than an 17
631-agent of an independent status to whom sub-18
632-paragraph (D)(ii) applies) is acting on behalf of 19
633-a trade or business of a qualified resident of 20
634-Taiwan and has and habitually exercises an au-21
635-thority to conclude contracts that are binding 22
636-on the trade or business, that trade or business 23
637-shall be deemed to have a permanent establish-24
638-ment in the country in which such authority is 25 24
639-•HR 33 EH
640-exercised in respect of any activities that the 1
641-person undertakes for the trade or business, un-2
642-less the activities of such person are limited to 3
643-those described in subparagraph (D)(i) that, if 4
644-exercised through a fixed place of business, 5
645-would not make this fixed place of business a 6
646-permanent establishment under the provisions 7
647-of that subparagraph. 8
648-‘‘(D) E
649-XCLUSIONS.— 9
650-‘‘(i) I
651-N GENERAL.—Notwithstanding 10
652-subparagraphs (A) and (B), the term ‘per-11
653-manent establishment’ shall not include— 12
654-‘‘(I) the use of facilities solely for 13
655-the purpose of storage, display, or de-14
656-livery of goods or merchandise belong-15
657-ing to the trade or business, 16
658-‘‘(II) the maintenance of a stock 17
659-of goods or merchandise belonging to 18
660-the trade or business solely for the 19
661-purpose of storage, display, or deliv-20
662-ery, 21
663-‘‘(III) the maintenance of a stock 22
664-of goods or merchandise belonging to 23
665-the trade or business solely for the 24 25
666-•HR 33 EH
667-purpose of processing by another 1
668-trade or business, 2
669-‘‘(IV) the maintenance of a fixed 3
670-place of business solely for the pur-4
671-pose of purchasing goods or merchan-5
672-dise, or of collecting information, for 6
673-the trade or business, 7
674-‘‘(V) the maintenance of a fixed 8
675-place of business solely for the pur-9
676-pose of carrying on, for the trade or 10
677-business, any other activity of a pre-11
678-paratory or auxiliary character, or 12
679-‘‘(VI) the maintenance of a fixed 13
680-place of business solely for any com-14
681-bination of the activities mentioned in 15
682-subclauses (I) through (V), provided 16
683-that the overall activity of the fixed 17
684-place of business resulting from this 18
685-combination is of a preparatory or 19
686-auxiliary character. 20
687-‘‘(ii) B
688-ROKERS AND OTHER INDE -21
689-PENDENT AGENTS .—A trade or business 22
690-shall not be considered to have a perma-23
691-nent establishment in a country merely be-24
692-cause it carries on business in such coun-25 26
693-•HR 33 EH
694-try through a broker, general commission 1
695-agent, or any other agent of an inde-2
696-pendent status, provided that such persons 3
697-are acting in the ordinary course of their 4
698-business as independent agents. 5
699-‘‘(3) T
700-ESTED GROUP.—The term ‘tested group’ 6
701-includes, with respect to any entity taxed as a cor-7
702-poration in Taiwan, such entity and any other entity 8
703-taxed as a corporation in Taiwan that— 9
704-‘‘(A) participates as a member with such 10
705-entity in a tax consolidation, fiscal unity, or 11
706-similar regime that requires members of the 12
707-group to share profits or losses, or 13
708-‘‘(B) shares losses with such entity pursu-14
709-ant to a group relief or other loss sharing re-15
710-gime. 16
711-‘‘(4) C
712-ONNECTED PERSON .—Two persons shall 17
713-be ‘connected persons’ if one owns, directly or indi-18
714-rectly, at least 50 percent of the interests in the 19
715-other (or, in the case of a corporation, at least 50 20
716-percent of the aggregate vote and value of the cor-21
717-poration’s shares) or another person owns, directly 22
718-or indirectly, at least 50 percent of the interests (or, 23
719-in the case of a corporation, at least 50 percent of 24
720-the aggregate vote and value of the corporation’s 25 27
721-•HR 33 EH
722-shares) in each person. In any case, a person shall 1
723-be connected to another if, based on all the relevant 2
724-facts and circumstances, one has control of the other 3
725-or both are under the control of the same person or 4
726-persons. 5
727-‘‘(5) F
728-OREIGN COUNTRY OF CONCERN .—The 6
729-term ‘foreign country of concern’ has the meaning 7
730-given such term under paragraph (7) of section 8
731-9901 of the William M. (Mac) Thornberry National 9
732-Defense Authorization Act for Fiscal Year 2021 (15 10
733-U.S.C. 4651(7)), as added by section 103(a)(4) of 11
734-the CHIPS Act of 2022). 12
735-‘‘(6) P
736-ARTNERSHIPS; BENEFICIARIES OF ES -13
737-TATES AND TRUSTS.—For purposes of this section— 14
738-‘‘(A) a qualified resident of Taiwan which 15
739-is a partner of a partnership which carries on 16
740-a trade or business within the United States 17
741-through a United States permanent establish-18
742-ment shall be treated as carrying on such trade 19
743-or business through such permanent establish-20
744-ment, and 21
745-‘‘(B) a qualified resident of Taiwan which 22
746-is a beneficiary of an estate or trust which car-23
747-ries on a trade or business within the United 24
748-States through a United States permanent es-25 28
749-•HR 33 EH
750-tablishment shall be treated as carrying on such 1
751-trade or business through such permanent es-2
752-tablishment. 3
753-‘‘(7) D
754-ENIAL OF BENEFITS FOR CERTAIN PAY -4
755-MENTS THROUGH HYBRID ENTITIES .—For purposes 5
756-of this section, rules similar to the rules of section 6
757-894(c) shall apply. 7
758-‘‘(e) A
759-PPLICATION.— 8
832+ROVISION OF RECIPROCITY .—The Presi-8
833+dent or his designee is authorized to exchange let-9
834+ters, enter into an agreement, or take other nec-10
835+essary and appropriate steps relative to Taiwan for 11
836+the reciprocal provision of the benefits described in 12
837+this section. 13
838+‘‘(f) R
839+EGULATIONS OROTHERGUIDANCE.— 14
760840 ‘‘(1) I
761-N GENERAL.—This section shall not apply 9
762-to any period unless the Secretary has determined 10
763-that Taiwan has provided benefits to United States 11
764-persons for such period that are reciprocal to the 12
765-benefits provided to qualified residents of Taiwan 13
766-under this section. 14
767-‘‘(2) P
768-ROVISION OF RECIPROCITY .—The Presi-15
769-dent or his designee is authorized to exchange let-16
770-ters, enter into an agreement, or take other nec-17
771-essary and appropriate steps relative to Taiwan for 18
772-the reciprocal provision of the benefits described in 19
773-this section. 20
774-‘‘(f) R
775-EGULATIONS OROTHERGUIDANCE.— 21
776-‘‘(1) I
777-N GENERAL.—The Secretary shall issue 22
778-such regulations or other guidance as may be nec-23
779-essary or appropriate to carry out the provisions of 24 29
780-•HR 33 EH
781-this section, including such regulations or guidance 1
782-for— 2
783-‘‘(A) determining— 3
784-‘‘(i) what constitutes a United States 4
785-permanent establishment of a qualified 5
786-resident of Taiwan, and 6
787-‘‘(ii) income that is effectively con-7
788-nected with such a permanent establish-8
789-ment, 9
790-‘‘(B) preventing the abuse of the provisions 10
791-of this section by persons who are not (or who 11
792-should not be treated as) qualified residents of 12
793-Taiwan, 13
794-‘‘(C) requirements for record keeping and 14
795-reporting, 15
796-‘‘(D) rules to assist withholding agents or 16
797-employers in determining whether a foreign per-17
798-son is a qualified resident of Taiwan for pur-18
799-poses of determining whether withholding or re-19
800-porting is required for a payment (and, if with-20
801-holding is required, whether it should be applied 21
802-at a reduced rate), 22
803-‘‘(E) the application of subsection 23
804-(a)(1)(D)(i) to stock held by predecessor own-24
805-ers, 25 30
806-•HR 33 EH
807-‘‘(F) determining what amounts are to be 1
808-treated as qualified wages for purposes of sub-2
809-section (a)(2), 3
810-‘‘(G) determining the amounts to which 4
811-subsection (a)(3) applies, 5
812-‘‘(H) defining established securities market 6
813-for purposes of subsection (c), 7
814-‘‘(I) the application of the rules of sub-8
815-section (c)(4)(B), 9
816-‘‘(J) the application of subsection (d)(6) 10
817-and section 1446, 11
818-‘‘(K) determining ownership interests held 12
819-by residents of a foreign country of concern, 13
820-and 14
821-‘‘(L) determining the starting and ending 15
822-dates for periods with respect to the application 16
823-of this section under subsection (e), which may 17
824-be separate dates for taxes withheld at the 18
825-source and other taxes. 19
841+N GENERAL.—The Secretary shall issue 15
842+such regulations or other guidance as may be nec-16
843+essary or appropriate to carry out the provisions of 17
844+this section, including such regulations or guidance 18
845+for— 19
846+‘‘(A) determining— 20
847+‘‘(i) what constitutes a United States 21
848+permanent establishment of a qualified 22
849+resident of Taiwan, and 23
850+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
851+ssavage on LAPJG3WLY3PROD with BILLS 29
852+•HR 33 IH
853+‘‘(ii) income that is effectively con-1
854+nected with such a permanent establish-2
855+ment, 3
856+‘‘(B) preventing the abuse of the provisions 4
857+of this section by persons who are not (or who 5
858+should not be treated as) qualified residents of 6
859+Taiwan, 7
860+‘‘(C) requirements for record keeping and 8
861+reporting, 9
862+‘‘(D) rules to assist withholding agents or 10
863+employers in determining whether a foreign per-11
864+son is a qualified resident of Taiwan for pur-12
865+poses of determining whether withholding or re-13
866+porting is required for a payment (and, if with-14
867+holding is required, whether it should be applied 15
868+at a reduced rate), 16
869+‘‘(E) the application of subsection 17
870+(a)(1)(D)(i) to stock held by predecessor own-18
871+ers, 19
872+‘‘(F) determining what amounts are to be 20
873+treated as qualified wages for purposes of sub-21
874+section (a)(2), 22
875+‘‘(G) determining the amounts to which 23
876+subsection (a)(3) applies, 24
877+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
878+ssavage on LAPJG3WLY3PROD with BILLS 30
879+•HR 33 IH
880+‘‘(H) defining established securities market 1
881+for purposes of subsection (c), 2
882+‘‘(I) the application of the rules of sub-3
883+section (c)(4)(B), 4
884+‘‘(J) the application of subsection (d)(6) 5
885+and section 1446, 6
886+‘‘(K) determining ownership interests held 7
887+by residents of a foreign country of concern, 8
888+and 9
889+‘‘(L) determining the starting and ending 10
890+dates for periods with respect to the application 11
891+of this section under subsection (e), which may 12
892+be separate dates for taxes withheld at the 13
893+source and other taxes. 14
826894 ‘‘(2) R
827-EGULATIONS TO BE CONSISTENT WITH 20
828-MODEL TREATY.—Any regulations or other guidance 21
829-issued under this section shall, to the extent prac-22
830-tical, be consistent with the provisions of the United 23
831-States model income tax convention dated February 24
832-7, 2016.’’. 25 31
833-•HR 33 EH
834-(b) CONFORMINGAMENDMENT TO WITHHOLDING 1
895+EGULATIONS TO BE CONSISTENT WITH 15
896+MODEL TREATY.—Any regulations or other guidance 16
897+issued under this section shall, to the extent prac-17
898+tical, be consistent with the provisions of the United 18
899+States model income tax convention dated February 19
900+7, 2016.’’. 20
901+(b) C
902+ONFORMINGAMENDMENT TO WITHHOLDING 21
835903 T
836-AX.—Subchapter A of chapter 3 of the Internal Revenue 2
837-Code of 1986 is amended by adding at the end the fol-3
838-lowing new section: 4
839-‘‘SEC. 1447. WITHHOLDING FOR QUALIFIED RESIDENTS OF 5
840-TAIWAN. 6
841-‘‘For reduced rates of withholding for certain resi-7
842-dents of Taiwan, see section 894A.’’. 8
904+AX.—Subchapter A of chapter 3 of the Internal Revenue 22
905+Code of 1986 is amended by adding at the end the fol-23
906+lowing new section: 24
907+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
908+ssavage on LAPJG3WLY3PROD with BILLS 31
909+•HR 33 IH
910+‘‘SEC. 1447. WITHHOLDING FOR QUALIFIED RESIDENTS OF 1
911+TAIWAN. 2
912+‘‘For reduced rates of withholding for certain resi-3
913+dents of Taiwan, see section 894A.’’. 4
843914 (c) C
844-LERICALAMENDMENTS.— 9
845-(1) The table of sections for subpart D of part 10
846-II of subchapter N of chapter 1 of the Internal Rev-11
847-enue Code of 1986 is amended by inserting after the 12
848-item relating to section 894 the following new item: 13
915+LERICALAMENDMENTS.— 5
916+(1) The table of sections for subpart D of part 6
917+II of subchapter N of chapter 1 of the Internal Rev-7
918+enue Code of 1986 is amended by inserting after the 8
919+item relating to section 894 the following new item: 9
849920 ‘‘Sec. 894A. Special rules for qualified residents of Taiwan.’’.
850-(2) The table of sections for subchapter A of 14
851-chapter 3 of such Code is amended by adding at the 15
852-end the following new item: 16
921+(2) The table of sections for subchapter A of 10
922+chapter 3 of such Code is amended by adding at the 11
923+end the following new item: 12
853924 ‘‘Sec. 1447. Withholding for qualified residents of Taiwan.’’.
854-TITLE II—UNITED STATES-TAI-17
855-WAN TAX AGREEMENT AU-18
856-THORIZATION ACT 19
857-SEC. 201. SHORT TITLE. 20
858-This title may be cited as the ‘‘United States-Taiwan 21
859-Tax Agreement Authorization Act’’. 22
860-SEC. 202. DEFINITIONS. 23
861-In this title: 24 32
862-•HR 33 EH
863-(1) AGREEMENT.—The term ‘‘Agreement’’ 1
864-means the tax agreement authorized by section 2
865-203(a). 3
866-(2) A
867-PPROPRIATE CONGRESSIONAL COMMIT -4
868-TEES.—The term ‘‘appropriate congressional com-5
869-mittees’’ means— 6
870-(A) the Committee on Foreign Relations 7
871-and the Committee on Finance of the Senate; 8
872-and 9
873-(B) the Committee on Ways and Means of 10
874-the House of Representatives. 11
925+TITLE II—UNITED STATES-TAI-13
926+WAN TAX AGREEMENT AU-14
927+THORIZATION ACT 15
928+SEC. 201. SHORT TITLE. 16
929+This title may be cited as the ‘‘United States-Taiwan 17
930+Tax Agreement Authorization Act’’. 18
931+SEC. 202. DEFINITIONS. 19
932+In this title: 20
933+(1) A
934+GREEMENT.—The term ‘‘Agreement’’ 21
935+means the tax agreement authorized by section 22
936+203(a). 23
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939+•HR 33 IH
940+(2) APPROPRIATE CONGRESSIONAL COMMIT -1
941+TEES.—The term ‘‘appropriate congressional com-2
942+mittees’’ means— 3
943+(A) the Committee on Foreign Relations 4
944+and the Committee on Finance of the Senate; 5
945+and 6
946+(B) the Committee on Ways and Means of 7
947+the House of Representatives. 8
875948 (3) A
876-PPROVAL LEGISLATION .—The term ‘‘ap-12
877-proval legislation’’ means legislation that approves 13
878-the Agreement. 14
949+PPROVAL LEGISLATION .—The term ‘‘ap-9
950+proval legislation’’ means legislation that approves 10
951+the Agreement. 11
879952 (4) I
880-MPLEMENTING LEGISLATION .—The term 15
881-‘‘implementing legislation’’ means legislation that 16
882-makes any changes to the Internal Revenue Code of 17
883-1986 necessary to implement the Agreement. 18
884-SEC. 203. AUTHORIZATION TO NEGOTIATE AND ENTER 19
885-INTO AGREEMENT. 20
953+MPLEMENTING LEGISLATION .—The term 12
954+‘‘implementing legislation’’ means legislation that 13
955+makes any changes to the Internal Revenue Code of 14
956+1986 necessary to implement the Agreement. 15
957+SEC. 203. AUTHORIZATION TO NEGOTIATE AND ENTER 16
958+INTO AGREEMENT. 17
886959 (a) I
887-NGENERAL.—Subsequent to a determination 21
888-under section 894A(e)(1) of the Internal Revenue Code 22
889-of 1986 (as added by the United States-Taiwan Expedited 23
890-Double-Tax Relief Act), the President is authorized to ne-24
891-gotiate and enter into a tax agreement relative to Taiwan. 25 33
892-•HR 33 EH
893-(b) ELEMENTS OFAGREEMENT.— 1
960+NGENERAL.—Subsequent to a determination 18
961+under section 894A(e)(1) of the Internal Revenue Code 19
962+of 1986 (as added by the United States-Taiwan Expedited 20
963+Double-Tax Relief Act), the President is authorized to ne-21
964+gotiate and enter into a tax agreement relative to Taiwan. 22
965+(b) E
966+LEMENTS OFAGREEMENT.— 23
894967 (1) C
895-ONFORMITY WITH BILATERAL INCOME TAX 2
896-CONVENTIONS.—The President shall ensure that— 3
897-(A) any provisions included in the Agree-4
898-ment conform with provisions customarily con-5
899-tained in United States bilateral income tax 6
900-conventions, as exemplified by the 2016 United 7
901-States Model Income Tax Convention; and 8
902-(B) the Agreement does not include ele-9
903-ments outside the scope of the 2016 United 10
904-States Model Income Tax Convention. 11
968+ONFORMITY WITH BILATERAL INCOME TAX 24
969+CONVENTIONS.—The President shall ensure that— 25
970+VerDate Sep 11 2014 00:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H33.IH H33
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972+•HR 33 IH
973+(A) any provisions included in the Agree-1
974+ment conform with provisions customarily con-2
975+tained in United States bilateral income tax 3
976+conventions, as exemplified by the 2016 United 4
977+States Model Income Tax Convention; and 5
978+(B) the Agreement does not include ele-6
979+ments outside the scope of the 2016 United 7
980+States Model Income Tax Convention. 8
905981 (2) I
906-NCORPORATION OF TAX AGREEMENTS AND 12
907-LAWS.—Notwithstanding paragraph (1), the Agree-13
908-ment may incorporate and restate provisions of any 14
909-agreement, or existing United States law, addressing 15
910-double taxation for residents of the United States 16
911-and Taiwan. 17
982+NCORPORATION OF TAX AGREEMENTS AND 9
983+LAWS.—Notwithstanding paragraph (1), the Agree-10
984+ment may incorporate and restate provisions of any 11
985+agreement, or existing United States law, addressing 12
986+double taxation for residents of the United States 13
987+and Taiwan. 14
912988 (3) A
913-UTHORITY.—The Agreement shall include 18
914-the following statement: ‘‘The Agreement is entered 19
915-into pursuant to the United States-Taiwan Tax 20
916-Agreement Authorization Act.’’ 21
989+UTHORITY.—The Agreement shall include 15
990+the following statement: ‘‘The Agreement is entered 16
991+into pursuant to the United States-Taiwan Tax 17
992+Agreement Authorization Act.’’ 18
917993 (4) E
918-NTRY INTO FORCE.—The Agreement shall 22
919-include a provision conditioning entry into force 23
920-upon— 24 34
921-•HR 33 EH
922-(A) enactment of approval legislation and 1
923-implementing legislation pursuant to section 2
924-207; and 3
925-(B) confirmation by the Secretary of the 4
926-Treasury that the relevant authority in Taiwan 5
927-has approved and taken appropriate steps re-6
928-quired to implement the Agreement. 7
929-SEC. 204. CONSULTATIONS WITH CONGRESS. 8
994+NTRY INTO FORCE.—The Agreement shall 19
995+include a provision conditioning entry into force 20
996+upon— 21
997+(A) enactment of approval legislation and 22
998+implementing legislation pursuant to section 23
999+207; and 24
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1002+•HR 33 IH
1003+(B) confirmation by the Secretary of the 1
1004+Treasury that the relevant authority in Taiwan 2
1005+has approved and taken appropriate steps re-3
1006+quired to implement the Agreement. 4
1007+SEC. 204. CONSULTATIONS WITH CONGRESS. 5
9301008 (a) N
931-OTIFICATIONUPONCOMMENCEMENT OF NEGO-9
932-TIATIONS.—The President shall provide written notifica-10
933-tion to the appropriate congressional committees of the 11
934-commencement of negotiations between the United States 12
935-and Taiwan on the Agreement at least 15 calendar days 13
936-before commencing such negotiations. 14
1009+OTIFICATIONUPONCOMMENCEMENT OF NEGO-6
1010+TIATIONS.—The President shall provide written notifica-7
1011+tion to the appropriate congressional committees of the 8
1012+commencement of negotiations between the United States 9
1013+and Taiwan on the Agreement at least 15 calendar days 10
1014+before commencing such negotiations. 11
9371015 (b) C
938-ONSULTATIONSDURINGNEGOTIATIONS.— 15
1016+ONSULTATIONSDURINGNEGOTIATIONS.— 12
9391017 (1) B
940-RIEFINGS.—Not later than 90 days after 16
941-commencement of negotiations with respect to the 17
942-Agreement, and every 180 days thereafter until the 18
943-President enters into the Agreement, the President 19
944-shall provide a briefing to the appropriate congres-20
945-sional committees on the status of the negotiations, 21
946-including a description of elements under negotia-22
947-tion. 23
1018+RIEFINGS.—Not later than 90 days after 13
1019+commencement of negotiations with respect to the 14
1020+Agreement, and every 180 days thereafter until the 15
1021+President enters into the Agreement, the President 16
1022+shall provide a briefing to the appropriate congres-17
1023+sional committees on the status of the negotiations, 18
1024+including a description of elements under negotia-19
1025+tion. 20
9481026 (2) M
949-EETINGS AND OTHER CONSULTATIONS .— 24 35
950-•HR 33 EH
951-(A) IN GENERAL.—In the course of nego-1
952-tiations with respect to the Agreement, the Sec-2
953-retary of the Treasury, in coordination with the 3
954-Secretary of State, shall— 4
955-(i) meet, upon request, with the chair-5
956-man or ranking member of any of the ap-6
957-propriate congressional committees regard-7
958-ing negotiating objectives and the status of 8
959-negotiations in progress; and 9
960-(ii) consult closely and on a timely 10
961-basis with, and keep fully apprised of the 11
962-negotiations, the appropriate congressional 12
963-committees. 13
1027+EETINGS AND OTHER CONSULTATIONS .— 21
1028+(A) I
1029+N GENERAL.—In the course of nego-22
1030+tiations with respect to the Agreement, the Sec-23
1031+retary of the Treasury, in coordination with the 24
1032+Secretary of State, shall— 25
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1035+•HR 33 IH
1036+(i) meet, upon request, with the chair-1
1037+man or ranking member of any of the ap-2
1038+propriate congressional committees regard-3
1039+ing negotiating objectives and the status of 4
1040+negotiations in progress; and 5
1041+(ii) consult closely and on a timely 6
1042+basis with, and keep fully apprised of the 7
1043+negotiations, the appropriate congressional 8
1044+committees. 9
9641045 (B) E
965-LEMENTS OF CONSULTATIONS .—The 14
966-consultations described in subparagraph (A) 15
967-shall include consultations with respect to— 16
968-(i) the nature of the contemplated 17
969-Agreement; 18
970-(ii) how and to what extent the con-19
971-templated Agreement is consistent with the 20
972-elements set forth in section 203(b); and 21
973-(iii) the implementation of the con-22
974-templated Agreement, including— 23
975-(I) the general effect of the con-24
976-templated Agreement on existing laws; 25 36
977-•HR 33 EH
978-(II) proposed changes to any ex-1
979-isting laws to implement the con-2
980-templated Agreement; and 3
981-(III) proposed administrative ac-4
982-tions to implement the contemplated 5
983-Agreement. 6
984-SEC. 205. APPROVAL AND IMPLEMENTATION OF AGREE-7
985-MENT. 8
1046+LEMENTS OF CONSULTATIONS .—The 10
1047+consultations described in subparagraph (A) 11
1048+shall include consultations with respect to— 12
1049+(i) the nature of the contemplated 13
1050+Agreement; 14
1051+(ii) how and to what extent the con-15
1052+templated Agreement is consistent with the 16
1053+elements set forth in section 203(b); and 17
1054+(iii) the implementation of the con-18
1055+templated Agreement, including— 19
1056+(I) the general effect of the con-20
1057+templated Agreement on existing laws; 21
1058+(II) proposed changes to any ex-22
1059+isting laws to implement the con-23
1060+templated Agreement; and 24
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1063+•HR 33 IH
1064+(III) proposed administrative ac-1
1065+tions to implement the contemplated 2
1066+Agreement. 3
1067+SEC. 205. APPROVAL AND IMPLEMENTATION OF AGREE-4
1068+MENT. 5
9861069 (a) I
987-NGENERAL.—The Agreement may not enter 9
988-into force unless— 10
989-(1) the President, at least 60 days before the 11
990-day on which the President enters into the Agree-12
991-ment, publishes the text of the contemplated Agree-13
992-ment on a publicly available website of the Depart-14
993-ment of the Treasury; and 15
994-(2) there is enacted into law, with respect to 16
995-the Agreement, approval legislation and imple-17
996-menting legislation pursuant to section 207. 18
1070+NGENERAL.—The Agreement may not enter 6
1071+into force unless— 7
1072+(1) the President, at least 60 days before the 8
1073+day on which the President enters into the Agree-9
1074+ment, publishes the text of the contemplated Agree-10
1075+ment on a publicly available website of the Depart-11
1076+ment of the Treasury; and 12
1077+(2) there is enacted into law, with respect to 13
1078+the Agreement, approval legislation and imple-14
1079+menting legislation pursuant to section 207. 15
9971080 (b) E
998-NTRYINTOFORCE.—The President may pro-19
999-vide for the Agreement to enter into force upon— 20
1000-(1) enactment of approval legislation and imple-21
1001-menting legislation pursuant to section 207; and 22
1002-(2) confirmation by the Secretary of the Treas-23
1003-ury that the relevant authority in Taiwan has ap-24 37
1004-•HR 33 EH
1005-proved and taken appropriate steps required to im-1
1006-plement the Agreement. 2
1007-SEC. 206. SUBMISSION TO CONGRESS OF AGREEMENT AND 3
1008-IMPLEMENTATION POLICY. 4
1081+NTRYINTOFORCE.—The President may pro-16
1082+vide for the Agreement to enter into force upon— 17
1083+(1) enactment of approval legislation and imple-18
1084+menting legislation pursuant to section 207; and 19
1085+(2) confirmation by the Secretary of the Treas-20
1086+ury that the relevant authority in Taiwan has ap-21
1087+proved and taken appropriate steps required to im-22
1088+plement the Agreement. 23
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1091+•HR 33 IH
1092+SEC. 206. SUBMISSION TO CONGRESS OF AGREEMENT AND 1
1093+IMPLEMENTATION POLICY. 2
10091094 (a) S
1010-UBMISSION OFAGREEMENT.—Not later than 5
1011-270 days after the President enters into the Agreement, 6
1012-the President or the President’s designee shall submit to 7
1013-Congress— 8
1014-(1) the final text of the Agreement; and 9
1015-(2) a technical explanation of the Agreement. 10
1095+UBMISSION OFAGREEMENT.—Not later than 3
1096+270 days after the President enters into the Agreement, 4
1097+the President or the President’s designee shall submit to 5
1098+Congress— 6
1099+(1) the final text of the Agreement; and 7
1100+(2) a technical explanation of the Agreement. 8
10161101 (b) S
1017-UBMISSION OFIMPLEMENTATION POLICY.—Not 11
1018-later than 270 days after the President enters into the 12
1019-Agreement, the Secretary of the Treasury shall submit to 13
1020-Congress— 14
1021-(1) a description of those changes to existing 15
1022-laws that the President considers would be required 16
1023-in order to ensure that the United States acts in a 17
1024-manner consistent with the Agreement; and 18
1025-(2) a statement of anticipated administrative 19
1026-action proposed to implement the Agreement. 20
1027-SEC. 207. CONSIDERATION OF APPROVAL LEGISLATION 21
1028-AND IMPLEMENTING LEGISLATION. 22
1102+UBMISSION OFIMPLEMENTATION POLICY.—Not 9
1103+later than 270 days after the President enters into the 10
1104+Agreement, the Secretary of the Treasury shall submit to 11
1105+Congress— 12
1106+(1) a description of those changes to existing 13
1107+laws that the President considers would be required 14
1108+in order to ensure that the United States acts in a 15
1109+manner consistent with the Agreement; and 16
1110+(2) a statement of anticipated administrative 17
1111+action proposed to implement the Agreement. 18
1112+SEC. 207. CONSIDERATION OF APPROVAL LEGISLATION 19
1113+AND IMPLEMENTING LEGISLATION. 20
10291114 (a) I
1030-NGENERAL.—The approval legislation with re-23
1031-spect to the Agreement shall include the following: ‘‘Con-24
1032-gress approves the Agreement submitted to Congress pur-25 38
1033-•HR 33 EH
1034-suant to section 206 of the United States-Taiwan Tax 1
1035-Agreement Authorization Act on llll.’’, with the 2
1036-blank space being filled with the appropriate date. 3
1037-(b) A
1038-PPROVALLEGISLATIONCOMMITTEEREFER-4
1039-RAL.—The approval legislation shall— 5
1040-(1) in the Senate, be referred to the Committee 6
1041-on Foreign Relations; and 7
1042-(2) in the House of Representatives, be referred 8
1043-to the Committee on Ways and Means. 9
1115+NGENERAL.—The approval legislation with re-21
1116+spect to the Agreement shall include the following: ‘‘Con-22
1117+gress approves the Agreement submitted to Congress pur-23
1118+suant to section 206 of the United States-Taiwan Tax 24
1119+Agreement Authorization Act on llll.’’, with the 25
1120+blank space being filled with the appropriate date. 26
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1123+•HR 33 IH
1124+(b) APPROVALLEGISLATIONCOMMITTEEREFER-1
1125+RAL.—The approval legislation shall— 2
1126+(1) in the Senate, be referred to the Committee 3
1127+on Foreign Relations; and 4
1128+(2) in the House of Representaives, be referred 5
1129+to the Committee on Ways and Means. 6
10441130 (c) I
1045-MPLEMENTING LEGISLATIONCOMMITTEERE-10
1046-FERRAL.—The implementing legislation shall— 11
1047-(1) in the Senate, be referred to the Committee 12
1048-on Finance; and 13
1049-(2) in the House of Representatives, be referred 14
1050-to the Committee on Ways and Means. 15
1051-SEC. 208. RELATIONSHIP OF AGREEMENT TO INTERNAL 16
1052-REVENUE CODE OF 1986. 17
1131+MPLEMENTING LEGISLATIONCOMMITTEERE-7
1132+FERRAL.—The implementing legislation shall— 8
1133+(1) in the Senate, be referred to the Committee 9
1134+on Finance; and 10
1135+(2) in the House of Representatives, be referred 11
1136+to the Committee on Ways and Means. 12
1137+SEC. 208. RELATIONSHIP OF AGREEMENT TO INTERNAL 13
1138+REVENUE CODE OF 1986. 14
10531139 (a) I
1054-NTERNALREVENUECODE OF1986 TOCON-18
1055-TROL.—No provision of the Agreement or approval legisla-19
1056-tion, nor the application of any such provision to any per-20
1057-son or circumstance, which is inconsistent with any provi-21
1058-sion of the Internal Revenue Code of 1986, shall have ef-22
1059-fect. 23
1140+NTERNALREVENUECODE OF1986 TOCON-15
1141+TROL.—No provision of the Agreement or approval legisla-16
1142+tion, nor the application of any such provision to any per-17
1143+son or circumstance, which is inconsistent with any provi-18
1144+sion of the Internal Revenue Code of 1986, shall have ef-19
1145+fect. 20
10601146 (b) C
1061-ONSTRUCTION.—Nothing in this title shall be 24
1062-construed— 25 39
1063-•HR 33 EH
1064-(1) to amend or modify any law of the United 1
1065-States; or 2
1066-(2) to limit any authority conferred under any 3
1067-law of the United States, 4
1068-unless specifically provided for in this title. 5
1069-SEC. 209. AUTHORIZATION OF SUBSEQUENT TAX AGREE-6
1070-MENTS RELATIVE TO TAIWAN. 7
1147+ONSTRUCTION.—Nothing in this title shall be 21
1148+construed— 22
1149+(1) to amend or modify any law of the United 23
1150+States; or 24
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1153+•HR 33 IH
1154+(2) to limit any authority conferred under any 1
1155+law of the United States, 2
1156+unless specifically provided for in this title. 3
1157+SEC. 209. AUTHORIZATION OF SUBSEQUENT TAX AGREE-4
1158+MENTS RELATIVE TO TAIWAN. 5
10711159 (a) I
1072-NGENERAL.—Subsequent to the enactment of 8
1073-approval legislation and implementing legislation pursuant 9
1074-to section 207— 10
1075-(1) the term ‘‘tax agreement’’ in section 203(a) 11
1076-shall be treated as including any tax agreement rel-12
1077-ative to Taiwan which supplements or supersedes 13
1078-the Agreement to which such approval legislation 14
1079-and implementing legislation relates, and 15
1080-(2) the term ‘‘Agreement’’ shall be treated as 16
1081-including such tax agreement. 17
1160+NGENERAL.—Subsequent to the enactment of 6
1161+approval legislation and implementing legislation pursuant 7
1162+to section 207— 8
1163+(1) the term ‘‘tax agreement’’ in section 203(a) 9
1164+shall be treated as including any tax agreement rel-10
1165+ative to Taiwan which supplements or supersedes 11
1166+the Agreement to which such approval legislation 12
1167+and implementing legislation relates, and 13
1168+(2) the term ‘‘Agreement’’ shall be treated as 14
1169+including such tax agreement. 15
10821170 (b) R
1083-EQUIREMENTS, ETC., TOAPPLYSEPA-18
1084-RATELY.—The provisions of this title (including section 19
1085-204) shall be applied separately with respect to each tax 20
1086-agreement referred to in subsection (a). 21
1087-SEC. 210. UNITED STATES TREATMENT OF DOUBLE TAX-22
1088-ATION MATTERS WITH RESPECT TO TAIWAN. 23
1171+EQUIREMENTS, ETC., TOAPPLYSEPA-16
1172+RATELY.—The provisions of this title (including section 17
1173+204) shall be applied separately with respect to each tax 18
1174+agreement referred to in subsection (a). 19
1175+SEC. 210. UNITED STATES TREATMENT OF DOUBLE TAX-20
1176+ATION MATTERS WITH RESPECT TO TAIWAN. 21
10891177 (a) F
1090-INDINGS.—Congress makes the following find-24
1091-ings: 25 40
1092-•HR 33 EH
1093-(1) The United States addresses issues with re-1
1094-spect to double taxation with foreign countries by 2
1095-entering into bilateral income tax conventions 3
1096-(known as tax treaties) with such countries, subject 4
1097-to the advice and consent of the Senate to ratifica-5
1098-tion pursuant to article II of the Constitution. 6
1099-(2) The United States has entered into more 7
1100-than sixty such tax treaties, which facilitate eco-8
1101-nomic activity, strengthen bilateral cooperation, and 9
1102-benefit United States workers, businesses, and other 10
1103-United States taxpayers. 11
1104-(3) Due to Taiwan’s unique status, the United 12
1105-States is unable to enter into an article II tax treaty 13
1106-with Taiwan, necessitating an agreement to address 14
1107-issues with respect to double taxation. 15
1178+INDINGS.—Congress makes the following find-22
1179+ings: 23
1180+(1) The United States addresses issues with re-24
1181+spect to double taxation with foreign countries by 25
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1184+•HR 33 IH
1185+entering into bilateral income tax conventions 1
1186+(known as tax treaties) with such countries, subject 2
1187+to the advice and consent of the Senate to ratifica-3
1188+tion pursuant to article II of the Constitution. 4
1189+(2) The United States has entered into more 5
1190+than sixty such tax treaties, which facilitate eco-6
1191+nomic activity, strengthen bilateral cooperation, and 7
1192+benefit United States workers, businesses, and other 8
1193+United States taxpayers. 9
1194+(3) Due to Taiwan’s unique status, the United 10
1195+States is unable to enter into an article II tax treaty 11
1196+with Taiwan, necessitating an agreement to address 12
1197+issues with respect to double taxation. 13
11081198 (b) S
1109-TATEMENT OFPOLICY.—It is the policy of the 16
1110-United States to— 17
1111-(1) provide for additional bilateral tax relief 18
1112-with respect to Taiwan, beyond that provided for in 19
1113-section 894A of the Internal Revenue Code of 1986 20
1114-(as added by the United States-Taiwan Expedited 21
1115-Double-Tax Relief Act), only after entry into force 22
1116-of an Agreement, as provided for in section 205, and 23
1117-only in a manner consistent with such Agreement; 24
1118-and 25 41
1119-•HR 33 EH
1120-(2) continue to provide for bilateral tax relief 1
1121-with sovereign states to address double taxation and 2
1122-other related matters through entering into bilateral 3
1123-income tax conventions, subject to the Senate’s ad-4
1124-vice and consent to ratification pursuant to article II 5
1125-of the Constitution. 6
1126-Passed the House of Representatives January 15,
1127-2025.
1128-Attest:
1129-Clerk. 119
1130-TH
1131-CONGRESS
1132-1
1133-ST
1134-S
1135-ESSION
1136-
1137-H. R. 33
1138-AN ACT
1139-To amend the Internal Revenue Code of 1986 to
1140-provide special rules for the taxation of certain
1141-residents of Taiwan with income from sources
1142-within the United States.
1199+TATEMENT OFPOLICY.—It is the policy of the 14
1200+United States to— 15
1201+(1) provide for additional bilateral tax relief 16
1202+with respect to Taiwan, beyond that provided for in 17
1203+section 894A of the Internal Revenue Code of 1986 18
1204+(as added by the United States-Taiwan Expedited 19
1205+Double-Tax Relief Act), only after entry into force 20
1206+of an Agreement, as provided for in section 205, and 21
1207+only in a manner consistent with such Agreement; 22
1208+and 23
1209+(2) continue to provide for bilateral tax relief 24
1210+with sovereign states to address double taxation and 25
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1213+•HR 33 IH
1214+other related matters through entering into bilateral 1
1215+income tax conventions, subject to the Senate’s ad-2
1216+vice and consent to ratification pursuant to article II 3
1217+of the Constitution. 4
1218+Æ
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