H.R. 33 · Passed House · Taxation

To amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the United States.

What it does

Amends the Internal Revenue Code to create Section 894A, providing special tax rules for qualified residents of Taiwan receiving income from U.S. sources.
Reduces withholding tax rates on interest, dividends, royalties, and certain gains paid to qualified Taiwan residents from 30 percent to 10 percent (or 15 percent for certain dividends), with exceptions for real estate investment trusts and section 897 amounts.
Exempts qualified wages paid to non-resident qualified Taiwan residents by non-U.S. employers from federal income tax and withholding.
Exempts income up to $30,000 per year derived by Taiwan resident entertainers or athletes from personal activities performed in the United States from federal tax.
Applies U.S. tax rates in sections 1, 11, 55, and 59A (rather than sections 871 and 882) to income effectively connected with a U.S. permanent establishment of a qualified Taiwan resident.

Jan 16, 2025: Received in the Senate and Read twice and referred to the Committee on Finance.

Committee: Senate Finance