Romney, Colleagues Laud SFRC Passage of their Taiwan Tax Agreement Act of 2023

WASHINGTON—U.S. Senator Mitt Romney (R-UT), Ranking Member of the Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy, today joined Senators Bob Menendez (D-NJ) and Jim Risch (R-ID), Chairman and Ranking Member of the Senate Foreign Relations Committee, as well as Senator Chris Van Hollen (D-MD), Chairman of the Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy, in releasing statements following the Committee’s passage of their Taiwan Tax Agreement Act of 2023, bipartisan legislation authorizing the Biden Administration to negotiate and conclude a tax agreement between the United States and Taiwan.

This bill facilitates investment between the United States and Taiwan in key strategic industries such as semiconductors, making it easier for businesses in the U.S. and Taiwan to avoid double taxation while also protecting against tax evasion. Given Taiwan’s unique status, the U.S. and Taiwan cannot enter into a “tax treaty,” but this bill comes as close as possible by laying the groundwork for an agreement with the key features of a tax treaty. In doing so, the bill demonstrates the deep respect that the U.S. shows Taiwan, approaching it like some of our closest partners.

“Taiwan has long been a trusted partner of the United States,” said Senator Romney. “By authorizing the Administration to negotiate this tax agreement, our legislation will help ensure that U.S. tax policies reflect our commitment to our relationship with Taiwan. The rising threat of China makes it important that we continue to strengthen the economic ties between our two countries. I am pleased that our legislation has passed out of committee and hope to see it go before the full Senate soon.”

“As Co-Chair of the Senate Taiwan Caucus, I am proud to lead the bipartisan effort to secure Foreign Relations Committee approval of this critical legislation. The Taiwan Tax Agreement Act of 2023, which authorizes the negotiation and conclusion of a tax agreement between the United States and Taiwan, is vital to ensuring economic stability and bolstering American and Taiwanese businesses, including entrepreneurs and innovators throughout New Jersey,” said Chairman Menendez. “As Beijing’s predatory economic practices escalate and President Xi seeks to find allies like President Putin to join in their malign actions, it is important we continue to work with partners such as Taiwan to promote a transparent, secure, and open global economy for all. The economic ties forged by the Taiwan Tax Agreement Act would support our supply chain resiliency and America’s future economic security, as well as that of our partners and allies. I look forward to working with my colleagues to ensure swift passage in both the House and Senate.”

“The Taiwan Tax Agreement provides an important opportunity to strengthen our economic relationship with Taiwan – one of the world’s largest economies,” said Ranking Member Risch. “This legislation will allow the president to start negotiating an agreement, modeled upon existing tax treaties, that would encourage increased investment between the U.S. and Taiwan by eliminating duplicative tax structures. It is important for the United States and other countries to increase their economic relations with Taiwan, especially given increased coercion by China. I hope the full Senate will vote on it soon.”

“It’s time to negotiate an agreement between the United States and Taiwan that removes the barrier and burden of double taxation and generates increased economic activity and opportunity between us. I’m glad the Foreign Relations Committee has advanced our bill today on a bipartisan basis to lay the groundwork for further cooperation and investment between the U.S. and Taiwan,” said Senator Van Hollen.

Find a copy of the legislation here.