The US Senate failed to pass the legislation (H.R. 7024) featuring the US-Taiwan Expedited Double-Tax Relief Act on 1 August 2024.
This legislation, known as the Tax Relief for American Families and Workers Act of 2024, aims to establish tax regulations for qualified Taiwan residents. It also includes the US-Taiwan Tax Agreement Authorisation Act, which would empower the President to negotiate and establish a tax agreement with Taiwan.
The United States-Taiwan Expedited Double-Tax Relief Act introduces specific regulations for taxing Taiwanese residents earning income from US sources. It covered “the reduction of the rate of withholding of taxes, the application of permanent establishment rules, treatment of income from employment, and the determination of the residency of citizens of Taiwan.”
Taiwan has been actively collaborating with the US to avoid double taxation. The bill specifies that for it to be fully effective, Taiwan must offer the same benefits to US individuals generating income that is taxable in Taiwan.
The bill was approved with a bipartisan majority in the House in January. However, because Congress is currently in recess until 9 September 2024, the bill cannot be reintroduced until lawmakers reconvene.
Although reintroduction is still possible, the bill’s passage is uncertain as lawmakers might prioritise other issues resulting in it being abandoned.
