The following income of a foreign corporation is not subject to the regular U.S. corporate income tax rates.

Question

Quizplus · Accepted Answer

Net long-term capital gains for which no U.S. trade or business exists are not subject to the regular U.S. corporate income tax rates for a foreign corporation. Instead, these gains are generally taxed at a flat rate of 30% or a lower treaty rate if applicable, and not at the graduated rates applicable to effectively connected income.

The Following Income of a Foreign Corporation Is Not Subject