Taiwan’s representative to the US Hsiao Bi-khim (蕭美琴) has discussed resolving Taiwanese investors' double taxation problem with a top US congressman. Hsiao met with Chris Smith, the chair of the Congressional-Executive Commission on China, last week.
The two discussed amending U.S. Treasury Department regulations that subject Taiwanese investors in the U.S. to double taxation. Smith says it is unreasonable that Taiwanese investors are penalized with double taxation. He says Taiwanese investors pay three times the tax rate on dividends compared to investors from China. China also receives more preferable treatment than Australia and South Korea.
Smith says as Taiwan is investing US$40 billion to build semiconductor factories in the U.S., Washington should encourage investment from Taiwan and disincentivize investment from China.
In a formal statement released by his office, Smith called Taiwan a great strategic partner that is a beacon of freedom.