,,ii  #aah? ,,congress  #b;d ,session   
,s4 #eahh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #be1 #bjbd   
,mr4 ,rubio introduc$ ! foll[+ bill2 :i*
 0 read twice & ref]r$ to ! ,committee  
on ,f9ance  ,a ,,bill  ,to am5d !       
,int]nal ,rev5ue ,code ( #aihf to       
inc5tivize ! dive/iture ( c]ta9         
securities connect$ to ! ,p's ,republic 
( ,*9a4  #a4 ,%ort title ,?is ,act may  
be cit$ z ! ,patriotic ,inve/m5t ,act4  
#b4 ,inc5tives to dive/ disqualifi$     
,,prc securities  7a7 ,treatm5t z ord9>y
 ga9 ,"p ,,iv ( sub*apt] ,p ( *apt] #a (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$ by add+ at ! end ! foll[+ new     
section3  #abfa4 ,ga9 f disposition (   
disqualifi$ ,,prc securities  7a7 ,9    
g5]al ,any ga9 on ! disposition ( any   
disqualifi$ ,,prc security %all be      
treat$ z ord9>y income & %all be        
recogniz$ not)/&+ any o!r provision (   
?is subtitle4  7b7 ,def9itions ,=       
purposes ( ?is section--  7#a7          
,disqualifi$ ,,prc security ,! t]m      

disqualifi$ ,,prc security means any    
specifi$ int]e/ held directly or        
indirectly ) respect to any ( ! foll[+3 
7,a7 ,! ,gov]nm5t ( ! ,p's ,republic (  
,*9a or any o!r gov]nm5tal entity bas$ 9
 ! ,p's ,republic ( ,*9a4  7,b7 ,!      
,*9ese ,communi/ ,p>ty or any           
subdivision or affiliate !re(4  7,c7 ,a 
p]son :o is a citiz51 national1 or      
resid5t ( ! ,p's ,republic ( ,*9a1      
provid$ t su* p]son is n an individual  
:o is--  7i7 a citiz5 or lawful p]man5t 
resid5t ( ! ,unit$ ,/ates1 or  7ii7     
domicil$ 9 ,taiwan possess+ a valid     
id5tification c>d or numb] issu$ by !   
gov]nm5t ( ,taiwan4  7,d7 ,a p]son      
7includ+ a legal entity7 headqu>t]$1    
organiz$ "u ! laws (1 or hav+ its       
pr9cipal place ( bus9ess 9 ! ,p's       
,republic ( ,*9a4  7,e7 ,a p]son at lea/
 #ae p]c5t ( ! out/&+ vot+ int]e/ ( :i* 
is held directly or indirectly by an    
entity describ$ 9 subp>agraphs          
7,a7-7,d74  7,f7 ,a p]son at lea/ #be   
p]c5t ( ! out/&+ vot+ int]e/ ( :i* is   

held directly or indirectly by any      
comb9ation ( p]sons describ$ 9          
subp>agraphs 7,a7-7,e74  7#b7 ,specifi$ 
int]e/ ,! t]m specifi$ int]e/--  7,a7   
means1 ) respect to a p]son-- 7i7 /ock  
or any o!r equity or pr(its int]e/ ( su*
 p]son1  7ii7 debt issu$ by su* p]son1 &
  7iii7 any contract or d]ivative )     
respect to an int]e/ describ$ 9 clause  
7i7 or 7ii71 &  7,b7 includes any int]e/
 held1 directly or indirectly1 ?r\gh--  
7i7 a regulat$ inve/m5t company1 ex*ange
 trad$ fund1 or o!r pool$ inve/m5t1 or  
7ii7 any d]ivative f9ancial in/rum5t or 
o!r contractual arrangem5t ) respect to 
su* int]e/ 7includ+ any f9ancial        
in/rum5t or o!r contract :i* seeks to   
replicate any f9ancial return ) respect 
to su* int]e/74  7#c7 ,p's ,republic (  
,*9a ,! t]m ,p's ,republic ( ,*9a       
includes ,special ,adm9i/rative         
,regions1 includ+ ,hong ,kong & ,macau1 
b does n include ,taiwan4  4  7b7 ,net  
,,prc securities ga9 subject to highe/  
rate ( income tax  7#a7 ,individuals    

,section #a ( su* ,code is am5d$ by add+
 at ! end ! foll[+ subsection3  7k7 ,net
 ,,prc securities ga9 subject to highe/ 
rate ( income tax  7#a7 ,9 g5]al ,! tax 
impos$ "u subsections 7a71 7b71 7c71    
7d71 & 7e7 %all be increas$ by ! product
 (--  7,a7 ! highe/ rate ( tax 9 effect 
"u su* subsection1 multipli$ by  7,b7 ! 
net ,,prc securities ga9 ( ! taxpay] = !
 taxable ye>4  7#b7 ,prev5tion ( d\ble  
taxation ,= purposes ( subsections 7a71 
7b71 7c71 7d7 & 7e71 taxable income     
7det]m9$ )\t reg>d to ?is p>agraph7 %all
 be r$uc$ by ! net ,,prc securities ga9 
( ! taxpay] = ! taxable ye>4  7#c7 ,net 
,,prc securities ga9 ,= purposes ( ?is  
subsection1 ! t]m net ,,prc securities  
ga9 means ! excess 7if any7 (--  7,a7 ! 
taxpay]'s aggregate ga9s on !           
dispositions ( disqualifi$ ,,prc        
securities = ! taxable ye>1 ov]  7,b7 ! 
taxpay]'s aggregate losses on !         
dispositions ( disqualifi$ ,,prc        
securities = su* taxable ye>4  4  7#b7  
,corporations ,section #aa7;b7 ( su*    

,code is am5d$ to read z foll[s3  7b7   
,am\nt ( tax ,! am\nt ( ! tax impos$ by 
subsection 7a7 %all be ! sum (--  7#a7  
#ba p]c5t ( ! excess 7if any7 (-- 7,a7  
taxable income1 ov]  7,b7 net ,,prc     
securities ga91 plus  7#b7 ! product (--
  7,a7 ! highe/ rate ( tax 9 effect "u  
section #a1 multipli$ by  7,b7 ! less] (
 taxable income or net ,,prc securities 
ga9 7z def9$ 9 section #a7k77#c774  4   
7c7 ,cl]ical am5dm5t ,! table ( sections
 = "p ,,iv ( sub*apt] ,p ( *apt] #a ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #abfa4 ,ga9s f disposition (      
disqualifi$ ,,prc securities4  4  7d7   
,effective date  7#a7 ,9 g5]al ,!       
am5dm5ts made by ?is section %all apply 
to dispositions aft] ! date :i* is #f   
mon?s aft] ! date ( ! enactm5t ( ?is    
,act4  7#b7 ,application to fir/ taxable
 ye> ,= purposes ( det]m9+ net ,,prc    
securities ga9 ) respect to any taxable 
ye> :i* includes ! date :i* is #f mon?s 
aft] ! date ( ! enactm5t ( ?is ,act1    

only dispositions ( disqualifi$ ,,prc   
securities 7z def9$ 9 section           
#abfa7;b77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 z am5d$ by ?is section7 aft]  
su* date %all be tak5 into acc\nt4  7e7 
,election ,to pay tax liability         
attributable to dispositions made 9     
anticipation ( increas$ tax 9 in/allm5ts
  7#a7 ,9 g5]al ,9 ! case ( any taxpay] 
:i* has a net ,,prc tax liability = any 
taxable ye>1 su* taxpay] may elect to   
pay su* liability 9 #c equal in/allm5ts4
  7#b7 ,date = paym5t ( in/allm5ts ,if  
an election is made "u p>agraph 7#a71 ! 
fir/ in/allm5t %all be paid on ! due    
date 7det]m9$ )\t reg>d to any ext5sion 
( "t = fil+ ! return7 = ! return ( tax =
 ! taxable ye> ref]r$ to 9 p>agraph 7#a7
 & ea* succe$+ in/allm5t %all be paid on
 ! due date 7z s det]m9$7 = ! return (  
tax = ! taxable ye> foll[+ ! taxable ye>
 ) respect to :i* ! prec$+ in/allm5t 0  
made4  7#c7 ,accel]ation ( paym5t ,if   
!re is an addition to tax = failure to  
timely pay any in/allm5t requir$ "u ?is 

subsection1 a liquidation or sale (     
sub/antially all ! assets ( ! taxpay]   
7includ+ 9 a title #aa or simil> case71 
a cessation ( bus9ess by ! taxpay]1 or  
any simil> circum/ance1 !n ! unpaid     
portion ( all rema9+ in/allm5ts %all be 
due on ! date ( su* ev5t 7or 9 ! case ( 
a title #aa or simil> case1 ! day be=e !
 petition is fil$74 ,! prec$+ s5t5ce    
%all n apply to ! sale ( sub/antially   
all ! assets ( a taxpay] to a buy] if   
su* buy] ent]s into an agreem5t ) !     
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 "u :i* su* buy] is
 liable = ! rema9+ in/allm5ts due "u ?is
 subsection 9 ! same mann] z if su* buy]
 7 ! taxpay]4  7#d7 ,proration (        
defici5cy to in/allm5ts ,if an election 
is made "u p>agraph 7#a7 to pay ! net   
,,prc tax liability 9 in/allm5ts & a    
defici5cy has be5 assess$ ) respect to  
su* liability1 ! defici5cy %all be      
prorat$ to ! in/allm5ts payable "u      
p>agraph 7#a74 ,! "p ( ! defici5cy s    
prorat$ to any in/allm5t ! date = paym5t

 ( :i* has n arriv$ %all be collect$ at 
! same "t z1 & z a "p (1 su* in/allm5t4 
,! "p ( ! defici5cy s prorat$ to any    
in/allm5t ! date = paym5t ( :i* has     
arriv$ %all be paid ^u notice & dem& f !
 ,secret>y ( ! ,treasury 7or !          
,secret>y's delegate74 ,?is subsection  
%all n apply if ! defici5cy is due to   
neglig5ce1 to int5tional disreg>d (     
rules & regulations1 or to fraud ) int5t
 to evade tax4  7#e7 ,election ,any     
election "u p>agraph 7#a7 %all be made n
 lat] ?an ! due date = ! return ( tax = 
! taxable ye> ref]r$ to 9 p>agraph 7#a7 
& %all be made 9 su* mann] z ! ,secret>y
 ( ! ,treasury 7or ! ,secret>y's        
delegate7 %all provide4  7#f7 ,net ,,prc
 tax liability ,= purposes ( ?is        
subsection-- 7,a7 ,9 g5]al ,! t]m net   
,,prc tax liability means1 ) respect to 
any taxpay] = any taxable ye>1 ! excess 
7if any7 (--  7i7 su* taxpay]'s net     
income tax = su* taxable ye>1 ov]  7ii7 
su* taxpay]'s net income tax = su*      
taxable ye> det]m9$ )\t reg>d to any    

ga9s or losses f ! disposition (        
disqualifi$ ,,prc securities 7z def9$ 9 
section #abfa7;b77#a7 ( ! ,int]nal      
,rev5ue ,code ( #aihf1 z add$ by ?is    
section7 dur+ ! #f-mon? p]iod beg9n+ on 
! date ( ! enactm5t ( ?is ,act4  7,b7   
,net income tax ,! t]m net income tax   
means ! regul> tax liability r$uc$ by ! 
cr$its all[$ "u subp>ts ,a1 ,b1 & ,d (  
"p ,,iv ( sub*apt] ,a4  7#g7 ,in/allm5ts
 treat$ z tax ,= purposes ( subtitle ,f 
( ! ,int]nal ,rev5ue ,code ( #aihf1 any 
in/allm5t due "u ?is subsection %all be 
treat$ 9 ! same mann] z tax except z    
o!rwise provid$ 9 ?is subsection4  #c4  
,d5ial ( =eign tax cr$it = income       
attributable to disposition (           
disqualifi$ ,,prc securities  7a7 ,9    
g5]al ,section #ija ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by r$esignat+   
subsection 7n7 z subsection 7o7 & by    
ins]t+ aft] subsection 7m7 ! foll[+ new 
subsection3  7n7 ,d5ial ( =eign tax     
cr$it ) respect to income attributable  
to disposition ( disqualifi$ ,,prc      

securities ,no cr$it %all be all[$ "u   
subsection 7a7 ) respect to any =eign   
income tax on income attributable to ga9
 f ! disposition ( a disqualifi$ ,,prc  
security 7z def9$ 9 section             
#abfa7;b77#a774  4  7b7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to dispositions aft] ! date :i* is
 #f mon?s aft] ! date ( ! enactm5t ( ?is
 ,act4