Zhang, an NRA who is not a resident of a treaty country, receives taxable dividends of $50,000 from U.S. corporations. Zhang does not conduct a U.S. trade or business. Zhang's dividends are subject to withholding by the payor of:

Question

Quizplus · Accepted Answer

Nonresident aliens (NRAs) who do not conduct a U.S. trade or business and are not residents of a treaty country are subject to a 30% withholding tax on U.S. source income, including dividends from U.S. corporations, unless a specific treaty provision reduces the rate.

Zhang, an NRA Who Is Not a Resident of a Treaty