Josephine is considering taking a 6-month rotation in Paris for her job. Which type of authority may be especially helpful in determining the tax consequences of Josephine's job in Paris?

Question

Quizplus · Accepted Answer

A tax treaty is an agreement between two countries that defines the tax treatment of individuals and businesses that are residents of those countries. If Josephine takes a job in Paris, she may be subject to taxation in both the US and France. A tax treaty between the US and France may provide guidance on which income is taxable in which country and what types of tax credits or deductions may be available to offset double taxation. Therefore, a tax treaty may be especially helpful in determining the tax consequences of Josephine's job in Paris. The other options listed could also be useful in certain situations, but they are not specifically tailored to international taxation issues.

Josephine Is Considering Taking a 6-Month Rotation in Paris for Her