TAIPEI (Taiwan News) — The Ministry of Finance (MOF) on Friday (July 14) welcomed the passage of the Taiwan Tax Agreement Act by the United States Senate Foreign Relations Committee.
The committee's approval on Thursday (July 13) will likely provide further impetus for an agreement to end double taxation for businesses active in both markets and to promote bilateral trade and investment, per CNA. The MOF described the move as a “good start” but also pointed out that the process of passing relevant legislation was complicated, and likely to reach completion only in the mid to long term.
According to MOF officials, the committee's passage of the act was only the first step in a long procedure. The reason is that U.S. taxation legislation is considerably complex, and more time is required to conclude any tax agreement with Taiwan.
The Taiwan Tax Agreement Act still needs to be discussed by the full Senate, and after that, the bill must be approved by the House of Representatives and be signed by the president before it can become law.
According to the act, if passed, the president will be required to inform Congressional committees about the progress of any negotiations related to a double taxation avoidance agreement between the U.S. and Taiwan.