Bill · H.R. 33· House(119-HR-33)
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.
- Introduced
- 1/3/2025
- Last activity
- 1/16/2025 — Received in the Senate and Read twice and referred to the Committee on Finance.
- Sponsored by
- Jason Smith
- Cosponsors
- - 30 - 16
- Introduced
- Passed House
- In Senate committee
What this bill would do
This bill, titled the "United States-Taiwan Expedited Double-Tax Relief Act," amends the Internal Revenue Code to create special tax rules for qualified residents of Taiwan. It establishes reduced tax rates for certain income, such as interest, dividends, and royalties, provided specific conditions are met. Additionally, the bill provides tax relief for qualified wages and certain income from entertainment or athletic activities. It also establishes rules for income connected to a United States permanent establishment. Finally, the act authorizes the President to negotiate and enter into a formal tax agreement with Taiwan to address double taxation issues.
Yes· 3 of 6
Does this strengthen ties with allied countries?+6
The bill strengthens economic and diplomatic ties between the United States and Taiwan through specialized tax relief.
Does this cut the tax on profits from selling investments?+5
The bill reduces the tax rate on certain gains received by qualified residents of Taiwan.
Would business owners be better off under this?+5
The bill provides significant tax relief for corporate entities and residents of Taiwan conducting business in the US.
The opposite
No question was scored the opposite.
What Congress actually voted on
One recorded vote has been taken on this bill.
- The House: the vote on whether to pass the billPassed 423–1
This is the real decision in this chamber. Passing here sends the bill to the other chamber, which must pass it too before it can go to the President.
01/15/2025 · Roll call 15 · recorded as “On Passage”
Who it would affect, and how
Potential Positive Impacts for People
-
Reduced Tax Rates on Investment Income: Qualified residents of Taiwan may benefit from a lower tax rate on interest and dividends. For instance, the applicable percentage for interest and most dividends is set at 10 percent rather than 30 percent (Section 102(a)(1)).
-
Tax Relief for Workers: Certain "qualified wages" paid to qualified residents of Taiwan may not be subject to United States tax or withholding, provided the employer is not a United States person (Section 102(a)(2)).
-
Tax Relief for Entertainers and Athletes: Individuals performing personal services as entertainers or athletes in the United States may have their income exempt from certain taxes if their aggregate gross receipts for the year do not exceed $30,000 (Section 102(a)(3)).
-
Avoidance of Double Taxation: The bill aims to address issues where income might be taxed in both the United States and Taiwan by providing special rules for permanent establishments and qualifying residents (Section 102(b)).
Potential Negative Impacts for People
-
Strict Eligibility Requirements for Corporations: To be considered a "qualified resident of Taiwan," corporate entities must meet specific ownership and income requirements, such as having at least 50 percent of their stock owned by qualified residents of Taiwan (Section 102(c)(2)).
-
Limitations on Dividend Rates: While some dividends receive a 10 percent rate, others may be subject to a 15 percent rate unless specific requirements regarding stock ownership are met (Section 102(a)(1)(C)).
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Exclusions for Certain Income Types: Certain types of income, such as dividends from specific real estate investment trusts or income from expatriated entities, are explicitly excluded from these special tax rules (Section 102(a)(1)(B)).
-
Dependency on Reciprocity: The special tax rules only apply if the Secretary of the Treasury determines that Taiwan has provided reciprocal benefits to United States persons (Section 102(e)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Capital Gains Tax+5Improves Economic Growth+4Increases Job Creation+3
- Demographic And Interest Groups
- Good For Business Owners+5Good For Immigrants+4
- National Security And Foreign Policy
- Improves International Alliances+6
- 1/16/2025
- Received in the Senate and Read twice and referred to the Committee on Finance.
- 1/15/2025
- Motion to reconsider laid on the table Agreed to without objection.
- Passed/agreed to in House: On passage Passed by the Yeas and Nays: 423 - 1 (Roll no. 15). (text: CR H160-164)
- On passage Passed by the Yeas and Nays: 423 - 1 (Roll no. 15). (text: CR H160-164)
- Considered as unfinished business. (consideration: CR H170)
- POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 33, the Chair put the question on passage and by voice vote, announced that the ayes had prevailed. Mr. Smith (MO) demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
- The previous question was ordered pursuant to the rule.
- DEBATE - The House proceeded with one hour of debate on H.R. 33.
- Considered under the provisions of rule H. Res. 5. (consideration: CR H160-168)
- 1/14/2025
- 1 Cosponsor added.
- 1/13/2025
- 8 Cosponsors added.
- 1/9/2025
- 1 Cosponsor added.
- 1/7/2025
- 2 Cosponsors added.
- 1/6/2025
- 33 Cosponsors added.
- 1/3/2025
- Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
- 119-S-199: 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.
- 119-HRES-5: Adopting the Rules of the House of Representatives for the One Hundred Nineteenth Congress, and for other purposes.
Vern BuchananRepublican · Florida
Andy BarrRepublican · Kentucky
Donald BeyerDemocrat · Virginia
Aaron BeanRepublican · Florida
Judy ChuDemocrat · California
Earl CarterRepublican · Georgia
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