View source for Resolution Supporting a US-Taiwan Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

{{Infobox ALEC Bills
|bill_title          = Resolution Supporting a US-Taiwan Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income
|date_introduced     = July 28, 2023
|date_reviewed       =
|date_finalized      =
|date_amended        =	
|date_accessed       =
|type                = Model Resolution
|status              = Draft
|task_forces         = Tax and Fiscal Policy; Federalism and International Relations
|keywords            = International relations
|notes               =
}}
<h1>Resolution Supporting a US-Taiwan Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income</h1>

WHEREAS, the United States has entered into tax treaties covering more than 60 jurisdictions around the world which facilitate bilateral economic activity; strengthen global cooperation and benefit US businesses and consumers; and

WHEREAS, Taiwan, with a population of 23.2 million has a rapidly expanding economy that produces items critical to the 21st century innovation economy and has the infrastructure to sustain continued development; and

WHEREAS, the US Department of Commerce considers Taiwan a top source of job-creating foreign direct investment (FDI), however Taiwan is one of only five tax jurisdictions enjoying that FDI distinction that does not currently have an ADTA in force with the United States; and

WHEREAS, Taiwanese companies are subject to a 30% withholding tax rate under current US federal tax law; and

WHEREAS, a tax agreement with Taiwan would play a key role in facilitating and promoting increased bilateral investment and trade between the United States and Taiwan, strengthening the relationship between the two democracies and encouraging other countries around the globe to bolster their economic ties with Taiwan; and

WHEREAS, a US-Taiwan ADTA can address double taxation arising from differing domestic tax laws in both democracies and resolve double taxation resulting from dual residency where individuals are sometimes subject to full tax liability in both the US and Taiwan jurisdictions facilitating a fair tax environment that benefits bilateral economic activity; and

WHEREAS, US enterprises may also encounter dual source income issues when they conduct business in Taiwan; and

WHEREAS, many of the countries with which the United States has negotiated tax treaties do not enjoy as close an economic or strategic partnership with the US as Taiwan; and

WHEREAS, Taiwan is a true democratic republic, and the United States has an interest in protecting Taiwan’s sovereignty and territorial integrity from PRC aggression and maintaining close economic ties with Taiwan is one way to strengthen this robust democracy’s strategic position; and

WHEREAS, the conclusion of a US-Taiwan ADTA will remove tax barriers and create a sustainable environment for cross-border investment and economic cooperation; and

WHEREAS, a US-Taiwan ADTA would foster greater investment by Taiwanese industries in the US, creating jobs for Americans and securing supply chains for vital products, including, but not limited to, semiconductors; and

WHEREAS, numerous nations around the globe, including significant US trading partners like Canada, the UK, Australia and Japan, have already adopted comprehensive income tax agreements with Taiwan.

NOW THEREFORE, BE IT RESOLVED that this legislative chamber supports the adoption and conclusion of a US-Taiwan Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.

BE IT FURTHER RESOLVED that a copy of this Resolution be forwarded to the President of the United States, to the Secretary of State of the United States, to the US Secretary of the Treasury, to the Chair and Ranking Member of the US Senate Foreign Relations Committee, to the Chair and Ranking Member of the US House Foreign Affairs Committee, and to the Commissioner of the Internal Revenue Service.