AmCham Taiwan Commends Upcoming Negotiations on Double Taxation Avoidance

TAIPEI, Taiwan – The American Chamber of Commerce in Taiwan (AmCham Taiwan) warmly welcomes the ongoing negotiations on a comprehensive agreement to address U.S.-Taiwan double taxation issues.

The Department of the Treasury has stated its intention to build on existing efforts by Congress to address double taxation between the United States and Taiwan. It also stated its commitment to collaborating with Congress throughout the negotiation process, aiming to finalize and implement the agreement through amendments to the Internal Revenue Code. The tax treaty, modeled on the U.S. Model Income Tax Convention, will cover critical areas such as reducing withholding taxes on dividends, interest, and royalties, and addressing cross-border worker taxation.

Reaching agreement on double taxation avoidance has been a longstanding advocacy issue of AmCham Taiwan. In its 2024 Taiwan White Paper, AmCham requested speedy action on the matter, “considering the benefits that both economies would derive from this legislation, as well as the symbolic value its passage would represent for U.S.-Taiwan relations.”

In June this year, AmCham issued a joint letter with the U.S.-Taiwan Business Council to the U.S. senate committees on finance and foreign relations, urging the commencement of advanced negotiations between the United States and Taiwan.

“An agreement between the United States and Taiwan for the avoidance of double taxation has been a key topic for the Chamber and our members for many years,” said AmCham Taiwan President Patrick P. Lin. “We are encouraged to see these negotiations starting and the potential unlocking of investments that will spur innovation and growth.” Inclusion of provisions on double taxation avoidance in key legislative packages, such as the defense appropriations and continuing resolution bills, could support a streamlined process toward final implementation.

AmCham looks forward to a swift negotiation process and prompt legislative action in the U.S. Senate and House of Representatives to approve and implement a final agreement, ensuring it fulfills its goals through the Internal Revenue Code and that the legal language aligns with the needs identified during negotiations.

For media inquiries or further information, please contact:
Celine Fahn
Director of Government and Public Affairs
02-27188226 ext. 315
[email protected]

Fernando Chen
Senior Manager of Government and Public Affairs
02-27188226 ext. 213
[email protected]