[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.
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