[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1457 Reported in Senate (RS)]
<DOC>
Calendar No. 151
118th CONGRESS
1st Session
S. 1457
To authorize negotiation and conclusion and to provide for
congressional consideration of a tax agreement between the American
Institute in Taiwan (AIT) and the Taipei Economic and Cultural
Representative Office (TECRO).
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 4, 2023
Mr. Menendez (for himself, Mr. Risch, Mr. Van Hollen, Mr. Romney, Mr.
Ricketts, Mr. Rubio, Mr. Graham, Ms. Murkowski, Mr. Scott of Florida,
Mr. Wicker, Mr. Sullivan, Mr. Kaine, Mrs. Shaheen, Ms. Duckworth, Mr.
Coons, Mr. Merkley, and Mr. Hagerty) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
July 25, 2023
Reported by Mr. Menendez, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To authorize negotiation and conclusion and to provide for
congressional consideration of a tax agreement between the American
Institute in Taiwan (AIT) and the Taipei Economic and Cultural
Representative Office (TECRO).
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Taiwan Tax Agreement Act of
2023''.</DELETED>
<DELETED>SEC. 2. FINDINGS.</DELETED>
<DELETED> Congress makes the following findings:</DELETED>
<DELETED> (1) The United States has entered into tax
treaties covering 65 jurisdictions, which facilitate economic
activity, strengthen bilateral cooperation, and benefit United
States businesses and other United States taxpayers.</DELETED>
<DELETED> (2) Taiwan is a one of the largest trading
partners of the United States and one of the world's largest
economies, and further bolstering economic ties between the
United States and Taiwan remains critical, especially given
Taiwan's strategic importance and the increasing threat posed
by the People's Republic of China.</DELETED>
<DELETED> (3) 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,
fortifying the relationship between the two more generally, and
encouraging other nations to increase their economic linkages
to Taiwan.</DELETED>
<DELETED>SEC. 3. AUTHORIZATION TO NEGOTIATE AND CONCLUDE.</DELETED>
<DELETED> (a) In General.--The President is authorized to negotiate
and enter into a tax agreement relative to Taiwan through the American
Institute in Taiwan (AIT) (hereinafter the ``Agreement'').</DELETED>
<DELETED> (b) Elements of Agreement.--The Agreement authorized to be
negotiated and concluded under this section shall conform with the
provisions customarily contained in United States bilateral income tax
conventions, as exemplified by the 2016 United States Model Income Tax
Convention, and shall include the following elements:</DELETED>
<DELETED> (1) Application to tax residents of the United
States, Taiwan, or both, exclusive of enterprises permanently
established in the People's Republic of China or in third
States that do not have a comprehensive income tax treaty with
the United States.</DELETED>
<DELETED> (2) Relief from double taxation.</DELETED>
<DELETED> (3) Measures aimed at limiting the risk of tax
evasion or avoidance.</DELETED>
<DELETED> (4) Entry into force conditioned upon confirmation
by the President of approval by the United States Congress, as
described in section 4, and relevant authority in Taiwan and
necessary steps taken to enable implementation.</DELETED>
<DELETED> (c) Limitation.--The Agreement authorized to be negotiated
and concluded under this section may not include elements outside the
scope of the 2016 United States Model Income Tax Convention.</DELETED>
<DELETED>SEC. 4. CONSULTATION.</DELETED>
<DELETED> (a) Notification Upon Commencement of Negotiations.--The
President shall provide written notification to the appropriate
congressional committees of the commencement of negotiations between
AIT and TECRO on the Agreement at least 15 calendar days before such
commencement.</DELETED>
<DELETED> (b) Reports.--Not later than 90 days after commencement of
negotiations on the Agreement, and every 180 days thereafter until
conclusion of the Agreement, the President shall submit a report to the
appropriate congressional committees providing an update on the status
of negotiations, including a description of elements under
negotiation.</DELETED>
<DELETED> (c) Consultations During Negotiations.--In the course of
negotiations conducted under the authorities of this Act, the Secretary
of the Treasury, in coordination with the Secretary of State, shall--
</DELETED>
<DELETED> (1) meet, upon request, with the Chairman or
Ranking Member of the appropriate congressional committees
regarding negotiating objectives and the status of negotiations
in progress; and</DELETED>
<DELETED> (2) consult closely, on a timely basis, and keep
fully apprised of the negotiations, the appropriate
congressional committees.</DELETED>
<DELETED>SEC. 5. APPROVAL OF THE AGREEMENT.</DELETED>
<DELETED> (a) Submission of Agreement.--Not later than 30 days after
the Agreement is concluded, the Secretary of State shall provide the
Agreement and technical explanation to the appropriate congressional
committees.</DELETED>
<DELETED> (b) Approval.--The Agreement shall not take effect until
after Congress passes a concurrent resolution of approval as described
in subsection (c).</DELETED>
<DELETED> (c) Terms of Concurrent Resolution of Approval.--
</DELETED>
<DELETED> (1) In general.--For purposes of subsection (b),
the term ``concurrent resolution of approval'' means only a
concurrent resolution--</DELETED>
<DELETED> (A) which does not have a
preamble;</DELETED>
<DELETED> (B) which includes in the matter after the
resolving clause the following: ``That Congress
approves the Tax Agreement concluded between the
American Institute in Taiwan and the Taipei Economic
and Cultural Representative Office, as submitted by the
President on ____.'', the blank space being filled in
with the appropriate date; and</DELETED>
<DELETED> (C) the title of which is as follows:
``Concurrent resolution approving the Tax Agreement
concluded between the American Institute in Taiwan and
the Taipei Economic and Cultural Representative
Office.''.</DELETED>
<DELETED> (2) Referral.--A resolution described in this
subsection that is introduced in the Senate shall be referred
to the Committee on Foreign Relations of the Senate. A
resolution described in this subsection that is introduced in
the House of Representatives shall be referred to the Committee
on Foreign Affairs of the House of Representatives.</DELETED>
<DELETED>SEC. 6. ENTRY INTO FORCE AND LEGAL EFFECT OF THE
AGREEMENT.</DELETED>
<DELETED> (a) Entry Into Force.--Upon passage of the concurrent
resolution of approval, the President may bring the Agreement into
force.</DELETED>
<DELETED> (b) Legal Effect.--Upon entry into force, the Agreement
shall be afforded the same treatment as a treaty for purposes of the
laws of the United States.</DELETED>
<DELETED>SEC. 7. APPROPRIATE CONGRESSIONAL COMMITTEES
DEFINED.</DELETED>
<DELETED> In this section, the term ``appropriate congressional
committees'' means the Committee on Foreign Relations and the Committee
on Finance of the Senate and the Committee on Foreign Affairs and the
Committee on Ways and Means of the House of Representatives.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taiwan Tax Agreement Act of 2023''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The United States has entered into tax treaties
covering 65 jurisdictions, which facilitate economic activity,
strengthen bilateral cooperation, and benefit United States
businesses and other United States taxpayers.
(2) Taiwan is a one of the largest trading partners of the
United States and one of the world's largest economies, and
further bolstering economic ties between the United States and
Taiwan remains critical, especially given Taiwan's strategic
importance and the increasing threat posed by the People's
Republic of China.
(3) 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, fortifying the
relationship between the two more generally, and encouraging
other nations to increase their economic linkages to Taiwan.
SEC. 3. AUTHORIZATION TO NEGOTIATE AND CONCLUDE.
(a) In General.--The President is authorized to negotiate and enter
into a tax agreement relative to Taiwan through the American Institute
in Taiwan (AIT) (hereinafter the ``Agreement'').
(b) Elements of Agreement.--The Agreement authorized to be
negotiated and concluded under this section shall conform with the
provisions customarily contained in United States bilateral income tax
conventions, as exemplified by the 2016 United States Model Income Tax
Convention, and shall include the following elements:
(1) Application to tax residents of the United States,
Taiwan, or both, exclusive of enterprises headquartered in the
People's Republic of China or in third states that do not have
a comprehensive income tax treaty with the United States.
(2) Relief from double taxation.
(3) Measures aimed at limiting the risk of tax evasion or
avoidance.
(4) Entry into force conditioned upon confirmation by the
President of approval by the United States Congress, as
described in section 5, and relevant authority in Taiwan and
necessary steps taken to enable implementation.
(c) Limitation.--The Agreement authorized to be negotiated and
concluded under this section may not include elements outside the scope
of the 2016 United States Model Income Tax Convention.
SEC. 4. CONSULTATION.
(a) Notification Upon Commencement of Negotiations.--The President
shall provide written notification to the appropriate congressional
committees of the commencement of negotiations between AIT and TECRO on
the Agreement at least 15 calendar days before such commencement.
(b) Briefings.--Not later than 90 days after commencement of
negotiations on the Agreement, and every 180 days thereafter until
conclusion of the Agreement, the President shall provide a briefing to
the appropriate congressional committees providing an update on the
status of negotiations, including a description of elements under
negotiation.
(c) Consultations During Negotiations.--In the course of
negotiations conducted under the authorities of this Act, the Secretary
of the Treasury, in coordination with the Secretary of State, shall--
(1) meet, upon request, with the Chairman or Ranking Member
of the appropriate congressional committees regarding
negotiating objectives and the status of negotiations in
progress; and
(2) consult closely, on a timely basis, and keep fully
apprised of the negotiations, the appropriate congressional
committees.
SEC. 5. APPROVAL OF THE AGREEMENT.
(a) Submission of Agreement.--Not later than 180 days after the
Agreement is concluded, the Secretary of State shall provide the
Agreement and technical explanation to the appropriate congressional
committees.
(b) Approval.--The Agreement shall not take effect until after
Congress passes a concurrent resolution of approval as described in
subsection (c).
(c) Terms of Concurrent Resolution of Approval.--
(1) In general.--For purposes of subsection (b), the term
``concurrent resolution of approval'' means only a concurrent
resolution--
(A) which does not have a preamble;
(B) which includes in the matter after the
resolving clause the following: ``That Congress
approves the Tax Agreement concluded between the
American Institute in Taiwan and the Taipei Economic
and Cultural Representative Office, as submitted by the
President on ____.'', the blank space being filled in
with the appropriate date; and
(C) the title of which is as follows: ``Concurrent
resolution approving the Tax Agreement concluded
between the American Institute in Taiwan and the Taipei
Economic and Cultural Representative Office.''.
(2) Referral.-- A resolution described in this subsection
that is introduced in the Senate shall be referred to the
Committee on Foreign Relations of the Senate. A resolution
described in this subsection that is introduced in the House of
Representatives shall be referred to the Committee on Foreign
Affairs of the House of Representatives.
SEC. 6. ENTRY INTO FORCE AND LEGAL EFFECT OF THE AGREEMENT.
(a) Entry Into Force.--Upon passage of the concurrent resolution of
approval, the President may bring the Agreement into force.
(b) Legal Effect.--Upon entry into force, the Agreement shall be
afforded the same treatment as a treaty for purposes of the laws of the
United States.
SEC. 7. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this section, the term ``appropriate congressional committees''
means the Committee on Foreign Relations and the Committee on Finance
of the Senate and the Committee on Foreign Affairs and the Committee on
Ways and Means of the House of Representatives.
Calendar No. 151
118th CONGRESS
1st Session
S. 1457
_______________________________________________________________________
A BILL
To authorize negotiation and conclusion and to provide for
congressional consideration of a tax agreement between the American
Institute in Taiwan (AIT) and the Taipei Economic and Cultural
Representative Office (TECRO).
_______________________________________________________________________
July 25, 2023
Reported with an amendment