TAIPEI (Taiwan News) — U.S. senators Chris Van Hollen and Ben Sasse have proposed a resolution calling for the U.S. and Taiwan to negotiate a tax agreement, which the Ministry of Finance (MOF) said it “welcomes.”
According to a press release published by Van Hollen on Friday (July 22), the bipartisan resolution would encourage U.S. President Joe Biden and Congress to work on a congressional-executive income tax agreement between the two countries. By doing so, the U.S. will “recognize the importance of Taiwan’s security and prosperity to the United States’ own security and prosperity,” boosting bilateral trade and investments.
Despite being a key economic partner of the U.S. for decades, Taiwanese and U.S. businesses continue to be double-taxed due to the lack of such an agreement, Van Hollen was cited as saying. He added, “It’s time to address this gap in our trade policy, and our resolution urges the Biden Administration to begin negotiations to that end.”
Sasse was quoted as saying, “Our economic partnership with Taiwan is one we should always look to strengthen.” He lauded Taiwan as a democratic and economic success story as well as the U.S.’ eighth-largest trading partner.
An unnamed MOF official told CNA in an interview the current tax treaties between Taiwan and the U.S. pertain to specific international transaction types, such as shipping by sea or air. Taiwan also signed comprehensive tax treaties with 34 countries.
The official added the MOF has always maintained an active and open attitude towards negotiating agreements. Meanwhile, another unnamed MOF official called the resolution’s introduction “a major breakthrough” as the U.S. Senate has blocked U.S. tax treaties with other countries from going into effect over the past decade.
