US House Approves Double Tax Avoidance Bill between the US and Taiwan

The bill aims to prevent double taxation between the U.S. and Taiwan, thereby enhancing economic and trade cooperation between the two countries. This move not only reduces the U.S.'s dependence on China but also enhances mutual investment between the U.S. and Taiwan, enabling both parties to withstand economic influence from China.

For Taiwan, the withholding tax rate on interest income, royalties, income received by eligible Taiwanese from the U.S. will be reduced from 30% to 10%. The withholding tax rate on dividends, including dividends paid by qualified Real Estate Investment Trusts (REITs), will be reduced from 30% to 15%. Additionally, the tax rate for individuals who own more than 10% equity in U.S. companies will be reduced to 10%.

Democratic Congressman Ron Wyden stated that the bill has received widespread support, which will enhance U.S.-Taiwan relations. The bill will now move to the Senate for a vote and then be sent to President Joe Biden for his signature. On the Taiwanese side, the Ministry of Finance has initiated negotiations on relevant documents, which will subsequently require approval from the Executive Yuan. Once both parties sign the international documents ensuring reciprocity, the bill will come into effect.

Both the U.S. and Taiwan welcome the passage of this bill. Additionally, on February 1, the Taiwanese Executive Yuan also announced that the government will continue to promote reciprocal cooperation with other countries to support Taiwan's globalization efforts.

美國眾議院於1月31日以357票同意對70票反對的壓倒性比數，順利通過「美台快速雙重稅收減免法案」。該法案為避免美台雙重課稅，以增強雙方的經貿合作。此舉除了美國可減少對中國的依賴，同時也增加美台相互投資，讓雙方降低來自中國的經濟影響。

對於台灣而言，符合條件的台灣人民自美國取得之利息收入、權利金和所得之預扣稅率將從30%降至10%，股利（包含合格不動產投資信託（REITs）支付股利）扣繳稅率則由30%降至15%。若擁有美國企業10%以上股權之持有人稅率則降至10%。

民主黨籍議員Ron Wyden表示，此案受到廣泛支持，且能增強美台關係。該法案後續將轉往參議院表決後，並送總統拜登簽署。台灣方面，財政部已著手商訂相關文書，後續須報奉行政院核定。待雙方簽署國際文書，確保互惠，即可生效。

美台對於此法案皆樂見其成，而台灣行政院於2月1日也表示政府後續也將持續推動與其他國家的互惠合作，協助台灣走向國際。