When a reciprocal tax treaty is in place, how does an expatriate benefit?
A) They may not have to pay income tax to both host and home governments.
B) They do not have to pay any income tax.
C) They have to pay income tax at a lower rate to the host-country government.
D) They have to pay income tax at a higher rate to the home-country government.
E) They pay 50 percent more tax to the host-country government.

Question

Quizplus · Accepted Answer

A reciprocal tax treaty helps expatriates avoid double taxation by allowing them to pay income tax to only one government, either the host or home country, rather than both.

When a Reciprocal Tax Treaty Is in Place, How Does