Reported 8 months ago
The Taiwan-US tax agreement, described as a 'bilateral agreement that is not a bilateral agreement,' requires both countries to amend their domestic laws for reciprocity. The agreement focuses on providing benefits to the US side, lowering tax rates for specific US source income for Taiwanese residents, exempting certain wages and related income in the US for Taiwanese residents under certain conditions, and specifying that only income effectively connected to business activities in the US for Taiwanese residents is subject to US federal tax, aligning with US policy to encourage Taiwanese businesses to set up manufacturing plants in the US. However, challenges in implementation include interpretations of terms and unresolved issues that require further negotiation between the two sides.
Source: YAHOO