[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2482-S2483]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 287. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of title XII, add the following:

              Subtitle H--Taiwan Tax Agreement Act of 2023

     SECTION 1299O. SHORT TITLE.

       This subtitle may be cited as the ``Taiwan Tax Agreement 
     Act of 2023''.

     SEC. 1299P. FINDINGS.

        Congress makes the following findings:
       (1) The United States has entered into tax treaties 
     covering 65 jurisdictions, which facilitate economic 
     activity, strengthen bilateral cooperation, and benefit 
     United States businesses and other United States taxpayers.
       (2) Taiwan is a one of the largest trading partners of the 
     United States and one of the world's largest economies, and 
     further bolstering economic ties between the United States 
     and Taiwan remains critical, especially given Taiwan's 
     strategic importance and the increasing threat posed by the 
     People's Republic of China.
       (3) A tax agreement with Taiwan would play a key role in 
     facilitating and promoting increased bilateral investment and 
     trade between the United States and Taiwan, fortifying the 
     relationship between the two more generally, and encouraging 
     other nations to increase their economic linkages to Taiwan.

     SEC. 1299Q. AUTHORIZATION TO NEGOTIATE AND CONCLUDE.

       (a) In General.--The President is authorized to negotiate 
     and enter into a tax agreement relative to Taiwan through the 
     American Institute in Taiwan (AIT) (hereinafter the 
     ``Agreement'').
       (b) Elements of Agreement.--The Agreement authorized to be 
     negotiated and concluded under this section shall conform 
     with the provisions customarily contained in United States 
     bilateral income tax conventions, as exemplified by the 2016 
     United States Model Income Tax Convention, and shall include 
     the following elements:
       (1) Application to tax residents of the United States, 
     Taiwan, or both, exclusive of enterprises headquartered in 
     the People's Republic of China or in third states that do not 
     have a comprehensive income tax treaty with the United 
     States.
       (2) Relief from double taxation.
       (3) Measures aimed at limiting the risk of tax evasion or 
     avoidance.
       (4) Entry into force conditioned upon confirmation by the 
     President of approval by the United States Congress, as 
     described in section 5, and relevant authority in Taiwan and 
     necessary steps taken to enable implementation.
       (c) Limitation.--The Agreement authorized to be negotiated 
     and concluded under this section may not include elements 
     outside the scope of the 2016 United States Model Income Tax 
     Convention.

     SEC. 1299R. CONSULTATION.

       (a) Notification Upon Commencement of Negotiations.--The 
     President shall provide written notification to the 
     appropriate congressional committees of the commencement of 
     negotiations between AIT and TECRO on the Agreement at least 
     15 calendar days before such commencement.
       (b) Briefings.--Not later than 90 days after commencement 
     of negotiations on the Agreement, and every 180 days 
     thereafter until conclusion of the Agreement, the President 
     shall provide a briefing to the appropriate congressional 
     committees providing an update on the status of negotiations, 
     including a description of elements under negotiation.
       (c) Consultations During Negotiations.--In the course of 
     negotiations conducted under the authorities of this 
     subtitle, the Secretary of the Treasury, in coordination with 
     the Secretary of State, shall--
       (1) meet, upon request, with the Chairman or Ranking Member 
     of the appropriate congressional committees regarding 
     negotiating objectives and the status of negotiations in 
     progress; and
       (2) consult closely, on a timely basis, and keep fully 
     apprised of the negotiations, the appropriate congressional 
     committees.

     SEC. 1299S. APPROVAL OF THE AGREEMENT.

       (a) Submission of Agreement.--Not later than 180 days after 
     the Agreement is concluded, the Secretary of State shall 
     provide the Agreement and technical explanation to the 
     appropriate congressional committees.
       (b) Approval.--The Agreement shall not take effect until 
     after Congress passes a concurrent resolution of approval as 
     described in subsection (c).
       (c) Terms of Concurrent Resolution of Approval.--
       (1) In general.--For purposes of subsection (b), the term 
     ``concurrent resolution of approval'' means only a concurrent 
     resolution--
       (A) which does not have a preamble;
       (B) which includes in the matter after the resolving clause 
     the following: ``That Congress approves the Tax Agreement 
     concluded between the American Institute in Taiwan and the 
     Taipei Economic and Cultural Representative Office, as 
     submitted by the President on ____.'', the blank space being 
     filled in with the appropriate date; and

[[Page S2483]]

       (C) the title of which is as follows: ``Concurrent 
     resolution approving the Tax Agreement concluded between the 
     American Institute in Taiwan and the Taipei Economic and 
     Cultural Representative Office.''.
       (2) Referral.--A resolution described in this subsection 
     that is introduced in the Senate shall be referred to the 
     Committee on Foreign Relations of the Senate. A resolution 
     described in this subsection that is introduced in the House 
     of Representatives shall be referred to the Committee on 
     Foreign Affairs of the House of Representatives.

     SEC. 1299T. ENTRY INTO FORCE AND LEGAL EFFECT OF THE 
                   AGREEMENT.

       (a) Entry Into Force.--Upon passage of the concurrent 
     resolution of approval, the President may bring the Agreement 
     into force.
       (b) Legal Effect.--Upon entry into force, the Agreement 
     shall be afforded the same treatment as a treaty for purposes 
     of the laws of the United States.

     SEC. 1299U. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

       In this section, the term ``appropriate congressional 
     committees'' means the Committee on Foreign Relations and the 
     Committee on Finance of the Senate and the Committee on 
     Foreign Affairs and the Committee on Ways and Means of the 
     House of Representatives.
                                 ______