A bill to amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the United States.

Source of recordUS Congress · congress.govLast synced Jul 10, 2026

Chamber

Senate

Progress

Where this bill stands in the legislative process.

Introduced
Passed Senate
Passed House
To President
Became Law

Overview

This bill, the United States-Taiwan Expedited Double-Tax Relief Act, amends the Internal Revenue Code to provide special tax rules for certain residents of Taiwan who earn income from sources within the United States. Specifically, it establishes a 10% tax rate (potentially 15% in some cases) on interest, dividends, royalties, and certain other income received by these residents, and offers streamlined rules for determining permanent establishments. The bill also addresses issues related to qualified wages and aims to prevent abuse of the provisions.

Key provisions

Establishes a 10% (or 15% in certain cases) tax rate on specific income types (interest, dividends, royalties, etc.) for qualified residents of Taiwan.
Creates a ‘qualified resident of Taiwan’ definition with specific requirements related to domicile, taxation, and ownership.
Provides simplified rules for determining a United States permanent establishment for these residents.
Offers exemptions for certain types of income, such as dividends from REITs, amounts subject to Section 897, and amounts received from expatriated entities.
Addresses qualified wages, exempting certain Taiwanese residents from U.S. tax on wages earned in the U.S.
Includes provisions regarding income derived from entertainment or athletic activities, limiting the taxable income to $30,000.
Clarifies the definition of a ‘United States permanent establishment’ and includes exceptions for storage and display of goods.
Authorizes the President to negotiate and enter into a tax agreement with Taiwan to further clarify and implement these rules.