Which of the following statements best characterizes the taxation of returns on international investments in an investor's country and/or the country where the investment is made?

Question

Quizplus · Accepted Answer

Investors in non-U.S. common stock normally avoid double taxation on dividend income by receiving a tax credit for taxes withheld by the country where the investment is made. Capital gains may be subject to taxation in both the investor's country and the country where the investment is made. Tax-exempt investors may still be subject to taxation on international investments, depending on the laws of the country where the investment is made. The investor's country may or may not withhold taxes on dividend payments, depending on the specific tax laws and agreements in place.

Which of the Following Statements Best Characterizes the Taxation of Returns