What This Bill Does
This is a Senate resolution expressing support for negotiating an income tax agreement (a treaty that prevents people and businesses from paying taxes twice on the same income) between the United States and Taiwan. The resolution encourages the President to begin these negotiations and to find other ways to strengthen trade and investment between the two countries.
Who It Affects
The resolution affects the President, the Senate, the House of Representatives, American businesses that trade with Taiwan, and Taiwan's government.
Key Provisions
• The Senate recognizes that Taiwan's security and prosperity matters to the United States' own security and prosperity (resolved paragraph 1)
• The Senate encourages the President to start negotiations on an income tax agreement with Taiwan (resolved paragraph 2)
• The Senate encourages the President and House to work with the Senate on a congressional-executive agreement (a formal agreement between the President and Congress) to establish an income tax agreement with Taiwan, following the Taiwan Relations Act (resolved paragraph 3)
• The Senate encourages the President to find additional ways to increase trade, technology, and investment ties between the United States and Taiwan (resolved paragraph 4)
What Changes
Not specified in bill text. This resolution expresses what the Senate believes should happen but does not create new laws or requirements.
Important Definitions
None defined.
III
118TH CONGRESS
1ST SESSION
S. RES. 91
Expressing the sense of the Senate on the value of a tax agreement with
Taiwan.
IN THE SENATE OF THE UNITED STATES
MARCH 2, 2023
Mr. VAN HOLLEN (for himself, Mr. CASSIDY, Mr. KAINE, Mr. YOUNG, Mr.
COONS, and Mr. ROMNEY) submitted the following resolution; which was
referred to the Committee on Foreign Relations
RESOLUTION
Expressing the sense of the Senate on the value of a tax
agreement with Taiwan.
Whereas Taiwan is a democratic success story, an economic
success story, a key part of global technology supply
chains, and a close security partner of the United States;
Whereas the United States has pursued a robust unofficial
partnership with Taiwan within the context of the cur-
rent one-China policy of the United States;
Whereas the Taiwan Relations Act (22 U.S.C. 3301 et seq.)
has played an important role in promoting democracy
and prosperity in Taiwan, peace and security in the Tai-
wan Strait, and close relations between the United States
and Taiwan since 1979;
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•SRES 91 IS
Whereas Taiwan is the eighth-largest trading partner of the
United States, United States exports of goods and serv-
ices to Taiwan support at least 188,000 American jobs,
and Taiwan’s cumulative investment in the United States
is at least $13,700,000,000;
Whereas the United States has ongoing economic dialogues
with Taiwan that cover a range of trade, technology, and
investment issues through the Trade and Investment
Framework Agreement Council led by the United States
Trade Representative, the U.S.-Taiwan Economic Pros-
perity Partnership Dialogue led by the Department of
State, and the Technology, Trade, and Investment Col-
laboration framework led by the Department of Com-
merce;
Whereas the Biden Administration announced the ‘‘U.S.-Tai-
wan Initiative on 21st Century Trade’’ on June 1, 2022;
Whereas the United States has income tax treaties with 66
countries, including the People’s Republic of China, and
has agreements with other parties, including Taiwan, re-
lated to taxation, such as facilitating implementation of
the Foreign Account Tax Compliance Act;
Whereas Taiwan is the United States largest trading partner
with whom we do not have an income tax treaty;
Whereas Taiwan has income tax agreements with 34 coun-
tries, including countries that have trade agreements with
the United States and do not maintain diplomatic rela-
tions with Taiwan;
Whereas the United States signed a transportation income
tax agreement with Taiwan in 1988, under the auspices
of the American Institute in Taiwan (AIT) and the Co-
ordination Council for North American Affairs, which has
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•SRES 91 IS
since been renamed as the Taipei Economic and Cultural
Representative Office (TECRO);
Whereas an income tax agreement between the United States
and Taiwan could boost bilateral trade and investment by
reducing double taxation and increasing economic effi-
ciency and integration; and
Whereas the American Chamber of Commerce in Taipei in its
‘‘2022 White Paper’’ called for the United States and
Taiwan to continue exploring an income tax agreement:
Now, therefore, be it
Resolved, That the Senate—
1
(1) recognizes the importance of Taiwan’s secu-
2
rity and prosperity to the United States own secu-
3
rity and prosperity;
4
(2) encourages the President to begin negotia-
5
tions on an income tax agreement with Taiwan;
6
(3) encourages the President and the House of
7
Representatives to work with the Senate on a con-
8
gressional-executive agreement to establish an in-
9
come tax agreement between the United States and
10
Taiwan, consistent with United States commitments
11
under the Taiwan Relations Act (22 U.S.C. 3301 et
12
seq.); and
13
(4) encourages the President to proactively seek
14
other ways to increase trade, technology, and invest-
15
ment ties between the United States and Taiwan.
16
Æ
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