Sec. 201 Short title
This title may be cited as the “United States-Taiwan Tax Agreement Authorization Act”.
Title II — United States-Taiwan Tax Agreement Authorization Act
II United States-Taiwan Tax Agreement Authorization Act
Sec. 202 Definitions
In this title:
Agreement— The term “Agreement” means the tax agreement authorized by section 203(a).
Appropriate congressional committees— The term “appropriate congressional committees” means—
the Committee on Foreign Relations and the Committee on Finance of the Senate; and
the Committee on Ways and Means of the House of Representatives.
Approval legislation— The term “approval legislation” means legislation that approves the Agreement.
Implementing legislation— The term “implementing legislation” means legislation that makes any changes to the Internal Revenue Code of 1986 necessary to implement the Agreement.
Sec. 203 Authorization to negotiate and enter into agreement
In general— Subsequent to a determination under section 894A(e)(1) of the Internal Revenue Code of 1986 (as added by the United States-Taiwan Expedited Double-Tax Relief Act), the President is authorized to negotiate and enter into a tax agreement relative to Taiwan.
Elements of agreement—
Conformity with bilateral income tax conventions— The President shall ensure that—
any provisions included in the Agreement conform with provisions customarily contained in United States bilateral income tax conventions, as exemplified by the 2016 United States Model Income Tax Convention; and
the Agreement does not include elements outside the scope of the 2016 United States Model Income Tax Convention.
Incorporation of tax agreements and laws— Notwithstanding paragraph (1), the Agreement may incorporate and restate provisions of any agreement, or existing United States law, addressing double taxation for residents of the United States and Taiwan.
Authority— The Agreement shall include the following statement: “The Agreement is entered into pursuant to the United States-Taiwan Tax Agreement Authorization Act.”
Entry into force— The Agreement shall include a provision conditioning entry into force upon—
enactment of approval legislation and implementing legislation pursuant to section 207; and
confirmation by the Secretary of the Treasury that the relevant authority in Taiwan has approved and taken appropriate steps required to implement the Agreement.
Sec. 204 Consultations with Congress
Notification upon commencement of negotiations— The President shall provide written notification to the appropriate congressional committees of the commencement of negotiations between the United States and Taiwan on the Agreement at least 15 calendar days before commencing such negotiations.
Consultations during negotiations—
Briefings— Not later than 90 days after commencement of negotiations with respect to the Agreement, and every 180 days thereafter until the President enters into the Agreement, the President shall provide a briefing to the appropriate congressional committees on the status of the negotiations, including a description of elements under negotiation.
Meetings and other consultations—
In general— In the course of negotiations with respect to the Agreement, the Secretary of the Treasury, in coordination with the Secretary of State, shall—
meet, upon request, with the chairman or ranking member of any of the appropriate congressional committees regarding negotiating objectives and the status of negotiations in progress; and
consult closely and on a timely basis with, and keep fully apprised of the negotiations, the appropriate congressional committees.
Elements of consultations— The consultations described in subparagraph (A) shall include consultations with respect to—
the nature of the contemplated Agreement;
how and to what extent the contemplated Agreement is consistent with the elements set forth in section 203(b); and
the implementation of the contemplated Agreement, including—
the general effect of the contemplated Agreement on existing laws;
proposed changes to any existing laws to implement the contemplated Agreement; and
proposed administrative actions to implement the contemplated Agreement.
Sec. 205 Approval and implementation of agreement
In general— The Agreement may not enter into force unless—
the President, at least 60 days before the day on which the President enters into the Agreement, publishes the text of the contemplated Agreement on a publicly available website of the Department of the Treasury; and
there is enacted into law, with respect to the Agreement, approval legislation and implementing legislation pursuant to section 207.
Entry into force— The President may provide for the Agreement to enter into force upon—
enactment of approval legislation and implementing legislation pursuant to section 207; and
confirmation by the Secretary of the Treasury that the relevant authority in Taiwan has approved and taken appropriate steps required to implement the Agreement.
Sec. 206 Submission to Congress of agreement and implementation policy
Submission of agreement— Not later than 270 days after the President enters into the Agreement, the President or the President’s designee shall submit to Congress—
the final text of the Agreement; and
a technical explanation of the Agreement.
Submission of implementation policy— Not later than 270 days after the President enters into the Agreement, the Secretary of the Treasury shall submit to Congress—
a description of those changes to existing laws that the President considers would be required in order to ensure that the United States acts in a manner consistent with the Agreement; and
a statement of anticipated administrative action proposed to implement the Agreement.
Sec. 207 Consideration of approval legislation and implementing legislation
In general— The approval legislation with respect to the Agreement shall include the following: “Congress approves the Agreement submitted to Congress pursuant to section 206 of the United States-Taiwan Tax Agreement Authorization Act on ____.”, with the blank space being filled with the appropriate date.
Approval legislation committee referral— The approval legislation shall—
in the Senate, be referred to the Committee on Foreign Relations; and
in the House of Representatives, be referred to the Committee on Ways and Means.
Implementing legislation committee referral— The implementing legislation shall—
in the Senate, be referred to the Committee on Finance; and
in the House of Representatives, be referred to the Committee on Ways and Means.
Sec. 208 Relationship of agreement to Internal Revenue Code of 1986
Internal Revenue Code of 1986 to control— No provision of the Agreement or approval legislation, nor the application of any such provision to any person or circumstance, which is inconsistent with any provision of the Internal Revenue Code of 1986, shall have effect.
Construction— Nothing in this title shall be construed—
to amend or modify any law of the United States; or
to limit any authority conferred under any law of the United States,
Sec. 209 Authorization of subsequent tax agreements relative to Taiwan
In general— Subsequent to the enactment of approval legislation and implementing legislation pursuant to section 207—
the term “tax agreement” in section 203(a) shall be treated as including any tax agreement relative to Taiwan which supplements or supersedes the Agreement to which such approval legislation and implementing legislation relates, and
the term “Agreement” shall be treated as including such tax agreement.
Requirements, etc., to apply separately— The provisions of this title (including section 204) shall be applied separately with respect to each tax agreement referred to in subsection (a).
Sec. 210 United States treatment of double taxation matters with respect to Taiwan
Findings— Congress makes the following findings:
The United States addresses issues with respect to double taxation with foreign countries by entering into bilateral income tax conventions (known as tax treaties) with such countries, subject to the advice and consent of the Senate to ratification pursuant to article II of the Constitution.
The United States has entered into more than sixty such tax treaties, which facilitate economic activity, strengthen bilateral cooperation, and benefit United States workers, businesses, and other United States taxpayers.
Due to Taiwan’s unique status, the United States is unable to enter into an article II tax treaty with Taiwan, necessitating an agreement to address issues with respect to double taxation.
Statement of policy— It is the policy of the United States to—
provide for additional bilateral tax relief with respect to Taiwan, beyond that provided for in section 894A of the Internal Revenue Code of 1986 (as added by the United States-Taiwan Expedited Double-Tax Relief Act), only after entry into force of an Agreement, as provided for in section 205, and only in a manner consistent with such Agreement; and
continue to provide for bilateral tax relief with sovereign states to address double taxation and other related matters through entering into bilateral income tax conventions, subject to the Senate’s advice and consent to ratification pursuant to article II of the Constitution.