Press Release:

The US-Taiwan Business Council Welcomes the Start of Negotiations to Address Double Taxation

(Arlington, Virginia, October 30, 2024)

The US-Taiwan Business Council (USTBC) welcomed the announcement by the U.S. Department of the Treasury that negotiations will begin on a comprehensive agreement to address U.S.-Taiwan double taxation issues. The first round of negotiations is expected to take place in the coming weeks.

The Treasury department said it would build on existing efforts by Congress to address double taxation between the United States and Taiwan. They also stated their commitment to engaging with Congress through the negotiations and to working with them on legislation to approve and implement the final agreement. The U.S. Model Income Tax Convention is expected to serve as the basis for the agreement text.

Council President Rupert Hammond-Chambers commented, “Launching negotiations on an avoidance of double taxation agreement is an exciting and positive development in U.S.-Taiwan relations. Earlier this year – in a joint letter with AmCham Taiwan to the U.S. Senate Committees on Finance and Foreign Relations – USTBC counseled Congress to greenlight just such advanced negotiations between the U.S. and Taiwan. We believe this will expedite the timeline for passage of the final legislation while signaling to U.S. and Taiwan industry the positive intent of the two governments. Companies can now start to make strategic decisions based on this policy development, which will in turn catalyze the deployment of capital into both markets.”

Hammond-Chambers added, “USTBC calls on both the U.S. and Taiwan, and on both U.S. political parties, to maintain their support for this important effort, given the economic and national security benefits that will accrue. Securing a more favorable bilateral tax environment is a true win-win for both the United States and Taiwan.”

About the US-Taiwan Business Council:

The US-Taiwan Business Council (www.us-taiwan.org) is a membership-based non-profit association, founded in 1976 to foster trade and business relations between the United States and Taiwan. The Council provides its members with business intelligence, offers access to an extensive network of relationships, and serves as a vital and effective representative in dealing with business, trade, and investment matters.