No Tax Treaties for Foreign Aggressors Act

End U.S.-China tax treaty on attack

If enacted, this bill would require the Treasury Secretary to give diplomatic notice to end the U.S.-People's Republic of China Income Tax Convention (Beijing, April 30, 1984; in force Jan 1, 1987). The Secretary must send that notice within 30 days after the President notifies the Secretary that the People's Liberation Army has initiated an armed attack against Taiwan. The President must also notify the Senate Foreign Relations and Finance Committees. If the treaty is ended under Article 28, treaty tax rules that reduce double taxation, limit withholding, or clarify residency and source would no longer apply. That could raise tax bills, increase withholding, and add compliance costs for U.S. and foreign investors and businesses with China cross-border income.