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US Senate committee passes bill that would cut taxes on Taiwanese firms operating in US
- Legislation approved unanimously by Senate Finance Committee would establish the first US tax deal specifically for Taiwan businesses
- The bill, which supports President Joe Biden’s goal of raising chip manufacturing in the US, would cut the tax rate on Taiwan companies’ US income by two-thirds
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US legislation that would establish the first US-Taiwan taxation agreement – and possibly benefit TSMC and other Taiwan companies operating in the US – passed a key congressional hurdle on Thursday.
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The bill – which, among other benefits, would cut by two-thirds the withholding tax rate on income earned in the US by qualified Taiwanese entities – passed the Senate Finance Committee unanimously in a special session.
Under the bill’s terms, a 30 per cent withholding tax on US-sourced income received by non-resident aliens and foreign corporations, interest and royalties would drop to 10 per cent.
A 15 per cent rate on US-sourced dividends would also fall, to 10 per cent.
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Biden tours new Taiwanese chip-making plant in Arizona, fans US-China semiconductor rivalry
Biden tours new Taiwanese chip-making plant in Arizona, fans US-China semiconductor rivalry
Senator Ron Wyden, Democrat of Oregon, said that the United States-Taiwan Expedited Tax Relief Act would help further the objectives of the Chips and Science Act, a landmark 2022 bill championed by US President Joe Biden to spur domestic production of semiconductor chips.
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