To amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income...

The bill creates a new tax code section giving 'qualified residents of Taiwan' reduced U.S. withholding rates, like a tax treaty, on income such as dividends, interest, royalties, wages, and business profits, plus rules on who qualifies and what counts as a U.S. permanent establishment. These lower rates apply only once the Treasury Secretary finds Taiwan gives equivalent tax benefits to U.S. persons. The bill also lets the President negotiate a tax agreement with Taiwan that cannot take effect until Congress passes an approval law and an implementing law.