# 119-s-199: A bill 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.

119-s-199, A bill 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., is a 119th Congress bill sponsored by Sen. Crapo, Mike [R-ID] (R-ID); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-199
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-199
- Congress: 119
- Title: A bill 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.
- Status: introduced
- Introduced: 2025-01-23
- Sponsor: Sen. Crapo, Mike [R-ID] (R-ID)
- Cosponsors: 48
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**special withholding and tax rules for qualified residents of Taiwan.** This bill would create a statutory regime that lowers or adjusts withholding on many U.S.-source items and defines who counts as a qualified Taiwan resident. It would also authorize negotiation of a formal U.S.–Taiwan income tax Agreement and set rules for how that deal is reviewed and implemented. - Taiwan residents and investors would get a special withholding framework for U.S. dividends, interest, royalties, wages, and certain gains. Most dividends would face a default 10 percent withholding and a 15 percent rate applies for some specified dividends. - Qualification and entity tests would limit who can use the lower rates by applying 50 percent ownership and income thresholds and a 12-month lookback to ownership. The bill also caps favorable treatment for entertainment and athletic income at $30,000 per year. - The bill would give the Executive authority to negotiate a bilateral Agreement with Taiwan while requiring Congressional notice and review. It requires a 15-day pre-notice before talks and submission of the final text and implementation plan to Congress within 270 days.

## Cosponsors (48)

- Sen. Risch, James E. [R-ID] (R-ID), 2025-01-23T00:00:00.000Z
- Sen. Wyden, Ron [D-OR] (D-OR), 2025-01-23T00:00:00.000Z
- Sen. Shaheen, Jeanne [D-NH] (D-NH), 2025-01-23T00:00:00.000Z
- Sen. Blackburn, Marsha [R-TN] (R-TN), 2025-02-03T00:00:00.000Z
- Sen. Coons, Christopher A. [D-DE] (D-DE), 2025-02-03T00:00:00.000Z
- Sen. Cruz, Ted [R-TX] (R-TX), 2025-02-03T00:00:00.000Z
- Sen. Daines, Steve [R-MT] (R-MT), 2025-02-03T00:00:00.000Z
- Sen. Grassley, Chuck [R-IA] (R-IA), 2025-02-03T00:00:00.000Z
- Sen. Merkley, Jeff [D-OR] (D-OR), 2025-02-03T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2025-02-03T00:00:00.000Z
- Sen. Tillis, Thomas [R-NC] (R-NC), 2025-02-03T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-02-03T00:00:00.000Z
- Sen. Warner, Mark R. [D-VA] (D-VA), 2025-02-03T00:00:00.000Z
- Sen. Padilla, Alex [D-CA] (D-CA), 2025-02-03T00:00:00.000Z
- Sen. Kelly, Mark [D-AZ] (D-AZ), 2025-02-03T00:00:00.000Z
- Sen. Rosen, Jacky [D-NV] (D-NV), 2025-02-06T00:00:00.000Z
- Sen. Budd, Ted [R-NC] (R-NC), 2025-02-06T00:00:00.000Z
- Sen. Hirono, Mazie K. [D-HI] (D-HI), 2025-02-13T00:00:00.000Z
- Sen. Lankford, James [R-OK] (R-OK), 2025-02-13T00:00:00.000Z
- Sen. Peters, Gary C. [D-MI] (D-MI), 2025-02-13T00:00:00.000Z
- Sen. Warnock, Raphael G. [D-GA] (D-GA), 2025-02-13T00:00:00.000Z
- Sen. Bennet, Michael F. [D-CO] (D-CO), 2025-02-24T00:00:00.000Z
- Sen. Curtis, John R. [R-UT] (R-UT), 2025-02-24T00:00:00.000Z
- Sen. Hyde-Smith, Cindy [R-MS] (R-MS), 2025-02-25T00:00:00.000Z
- Sen. Sheehy, Tim [R-MT] (R-MT), 2025-02-25T00:00:00.000Z
- Sen. Cassidy, Bill [R-LA] (R-LA), 2025-03-03T00:00:00.000Z
- Sen. Fetterman, John [D-PA] (D-PA), 2025-03-03T00:00:00.000Z
- Sen. Sullivan, Dan [R-AK] (R-AK), 2025-03-06T00:00:00.000Z
- Sen. Kennedy, John [R-LA] (R-LA), 2025-03-10T00:00:00.000Z
- Sen. Moran, Jerry [R-KS] (R-KS), 2025-03-13T00:00:00.000Z
- Sen. Cortez Masto, Catherine [D-NV] (D-NV), 2025-03-13T00:00:00.000Z
- Sen. Murray, Patty [D-WA] (D-WA), 2025-03-25T00:00:00.000Z
- Sen. Hassan, Margaret Wood [D-NH] (D-NH), 2025-04-01T00:00:00.000Z
- Sen. Gallego, Ruben [D-AZ] (D-AZ), 2025-04-01T00:00:00.000Z
- Sen. Hickenlooper, John W. [D-CO] (D-CO), 2025-05-05T00:00:00.000Z
- Sen. Justice, James C. [R-WV] (R-WV), 2025-05-08T00:00:00.000Z
- Sen. Luján, Ben Ray [D-NM] (D-NM), 2025-05-19T00:00:00.000Z
- Sen. Blumenthal, Richard [D-CT] (D-CT), 2025-05-22T00:00:00.000Z
- Sen. Slotkin, Elissa [D-MI] (D-MI), 2025-06-12T00:00:00.000Z
- Sen. Alsobrooks, Angela D. [D-MD] (D-MD), 2025-06-17T00:00:00.000Z
- Sen. Young, Todd [R-IN] (R-IN), 2025-07-15T00:00:00.000Z
- Sen. Banks, Jim [R-IN] (R-IN), 2025-07-30T00:00:00.000Z
- Sen. Blunt Rochester, Lisa [D-DE] (D-DE), 2025-09-02T00:00:00.000Z
- Sen. Lummis, Cynthia M. [R-WY] (R-WY), 2025-12-16T00:00:00.000Z
- Sen. Hoeven, John [R-ND] (R-ND), 2026-01-14T00:00:00.000Z
- Sen. Scott, Tim [R-SC] (R-SC), 2026-02-10T00:00:00.000Z
- Sen. Duckworth, Tammy [D-IL] (D-IL), 2026-03-10T00:00:00.000Z
- Sen. Schiff, Adam B. [D-CA] (D-CA), 2026-04-13T00:00:00.000Z

## Provisions PRIA read

- Lower withholding for Taiwan investors: benefit, high. If enacted, the bill would replace the usual 30% nonresident withholding with lower fixed rates for many payments to qualified Taiwan residents. Most non-dividend items would be withheld at 10 percent. Dividends would generally be 15 percent, but a 10 percent rate would apply if the recipient direc…
- Lower U.S. tax for Taiwan workers: benefit, medium. If enacted, the bill would exempt many wages paid to qualifying Taiwan residents from U.S. tax and U.S. withholding. The wage rule applies when a non-U.S. employer pays wages for U.S. services and the wages are not borne by a U.S. permanent establishment. The bill would also let some dual residents…
- Who counts as Taiwan resident: benefit, low. If enacted, the bill would define who is a "qualified resident of Taiwan" for the special rules. You would qualify if you are liable for tax under Taiwan law and are not a U.S. person under the bill's special test. If an entity is taxed as a Taiwan corporation, it must meet the statute's corporate…
- New U.S. tax rules for Taiwan firms: mixed, medium. If enacted, the bill would set tests for when a Taiwan corporation can get special U.S. tax treatment. One test needs at least 50% Taiwan ownership and limits payments to non‑qualified parties. There are alternate tests for publicly traded companies and small qualified-subsidiary groups. The bill n…
- Authority to negotiate Taiwan tax pact: mixed, low. If enacted, the bill would let the President negotiate and enter a tax agreement with Taiwan after a required determination. The bill would require Treasury to notify Congress 15 days before talks start, post the draft on its website 60 days before entry, provide regular briefings, and require Cong…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.
- 119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewellyn Kyl, former Senator for the State of Arizona.
- 119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham, a Senator from the State of South Carolina.
- 119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former Senator for the State of Michigan.
- 119-sres-739: A resolution honoring the life and legacy of John Seymour, the late Senator for the State of California.

## Sources
- [119-s-199 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/199)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewel…](https://policyrisk.com/legislation/119-sres-897)
- [119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham,…](https://policyrisk.com/legislation/119-sres-801)
- [119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former S…](https://policyrisk.com/legislation/119-sres-755)
- [119-sres-739: A resolution honoring the life and legacy of John Seymour, the late Senator for…](https://policyrisk.com/legislation/119-sres-739)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-199 (as of 2026-04-21).