Bill would cut US withholding tax rates for qualified Taiwan residents
Passed one chamberH.R. 33Latest action
Sponsor: Jason Smith · Representative · MO
AIDecoded by AI · checked against the recordRead the official text
Official title: 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.
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
The plain-language version comes first. The official text is always the reference.
The bill lowers U.S. withholding taxes on Taiwan-linked income and sets up a process for a broader tax agreement with Taiwan.
50-second read · 4 questions answered below
What does this do?
This bill changes the U.S. tax code to lower withholding tax rates, generally to 10-15% instead of 30%, on dividends, interest, royalties, and wages earned by qualified residents of Taiwan, including individuals and qualifying companies. It also defines when a Taiwanese business has a taxable presence in the U.S. and creates a process for the president to negotiate a broader tax agreement with Taiwan, subject to congressional review and approval.
Who does it affect?
The bill affects Taiwanese individuals and companies earning U.S. income, U.S. companies with Taiwanese investors or partners, and financial institutions or employers handling related tax withholding. It also affects Americans doing business in Taiwan.
Why does it matter?
These tax benefits only take effect once the Treasury Department confirms Taiwan offers reciprocal tax relief to U.S. citizens and companies. Because Taiwan's diplomatic status prevents a standard , the bill relies on direct tax code changes and a congressional approval process for any broader agreement.
AI-drafted summary. Check it against the official text before you act on it.
Based on the “Referred in Senate” text of Jan 16, 2025.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedJan 3, 2025
- House committee
- House vote
- SenateYou are here · Jan 16, 2025
- The president's desk
Right now: it passed the House, and the official record shows nothing new since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Received in the Senate and Read twice and referred to the Committee on Finance.
Recorded votes
Roll-call votes recorded since January 3, 2025.
House · · Roll call 15
As recorded
- Question
- On Passage
- Result:
- Passed
- 423
- Nay
- 1
- 0
- 9
Republicans 213 yes, 1 no, 4 not voting · Democrats 210 yes, 5 not voting
Official recordHow members voted
The official record lists how each member voted.Official record