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.

Reduced Tax Rates on Investment Income: Qualified residents of Taiwan would see lower tax rates on interest, dividends, and royalties. For example, the applicable percentage for many items is set at 10 percent instead of the standard 30 percent (Section 102(a)(1)(C)).

Lower Rates on Specific Dividends: Certain dividends could be taxed at a rate of 15 percent, or even 10 percent if specific requirements are met (Section 102(a)(1)(C)).

Tax Relief for Workers: No tax would be imposed on "qualified wages" paid to a qualified resident of Taiwan who is not a resident of the United States or is employed on a ship or aircraft in international traffic (Section 102(a)(2)).

Tax Relief for Entertainers and Athletes: Individuals performing entertainment or athletic activities in the United States may not have taxes imposed on that income if the aggregate gross receipts do not exceed $30,000 (Section 102(a)(3)).

Exclusions from Benefits: Certain types of income are excluded from these special rules, such as dividends from real estate investment trusts that are not "qualified REIT dividends," or amounts subject to section 897 (Section 102(a)(1)(B)).

Restrictions on Wages: "Qualified wages" do not include certain types of income like directors' fees, income from entertainers or athletes, student/trainee income, or pensions (Section 102(a)(2)(B)(ii)).

Limitations on Entertainment/Athletic Income: The tax relief for entertainers and athletes does not apply if the income is effectively connected with a United States permanent establishment (Section 102(a)(3)(B)(i)).