US Home members favor Biden to negotiation Taiwan tax deal

© Reuters. A Taiwan flag could additionally be viewed at Liberty Sq. in Taipei, Taiwan, July 28, 2022. REUTERS/Ann Wang/File Describe

By Patricia Zengerle

WASHINGTON (Reuters) – Republican and Democratic members of the U.S. Home of Representatives presented laws on Wednesday that can authorize President Joe Biden’s administration to negotiate a tax agreement with Taiwan, seeking to foster investment as Washington works to shore up the island against a rising China.

The lawmakers, including Home International Affairs Committee Chairman Michael McCaul and high Democrat Gregory Meeks, stated the agreement, corresponding to a treaty, would facilitate investment, provide protection to against tax evasion and enable companies in both the United States and Taiwan to handle a long way off from double taxation.

“As well to to the advantages we are in a position to receive from extra investment from Taiwan, here’s one other crucial step in safeguarding Taiwan and inserting ahead peace and balance within the Indo-Pacific,” McCaul stated in a assertion.

The invoice is a accomplice to a measure presented within the Senate in Also can fair by lawmakers including the chairman and ranking member of the Senate International Family Committee.

Washington and Taipei attain no longer occupy formal diplomatic household, so the dearth of a tax agreement potential Taiwanese companies and folk are taxed on their profits by both the U.S. and Taiwanese governments.

China views democratically governed Taiwan as its like territory and has elevated navy, political and economic stress to protest those claims.

Taiwan is a major global supplier of the semiconductor chips a must occupy to a big selection of user goods and navy gear.