Gallagher, Krishnamoorthi Joint Statement on Legislation to Resolve U.S.-Taiwan Double Taxation Issue

WASHINGTON, DC – Chairman Mike Gallagher (R-WI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Chinese Communist Party today released the below statement on legislation recently introduced by the House Ways and Means Committee and the Senate Finance Committee that works to end double taxation on U.S. and Taiwanese businesses that in each other's nation.

“We commend the bipartisan efforts of the House Ways and Means Committee and Senate Finance Committee to expeditiously introduce legislation to start to resolve the U.S. - Taiwan’s double taxation issue. These adjustments would alleviate the tax-related challenges faced by American companies conducting business in Taiwan, preventing the possibility of being taxed twice on their operational earnings, dividends, and royalties. Moreover, it would eliminate an obstacle to the United States' capacity to attract further investment initiatives from prominent Taiwanese corporations because of prohibitively high tax rates that are applied to them. Taiwanese companies currently investing in the United States face an estimated effective tax rate of fifty percent on profits earned in the United States, making it more costly for their companies and citizens to conduct business within the United States. This legislation will strengthen U.S.-Taiwan ties, spur economic development, and encourage Taiwanese investment in critical sectors like semiconductors as the United States moves forward with the implementation of policies to strengthen our supply chain resilience.”