Absent a treaty provision, what is the statutory withholding tax rate imposed by the United States on a dividend paid by a U.S. corporation to a resident of Denmark?
A)30 percent
B)15 percent
C)5 percent
D)0 percent

Question

Quizplus · Accepted Answer

The statutory withholding tax rate imposed by the United States on dividends paid to foreign residents is 30 percent, unless a treaty provision states otherwise. There is a U.S.-Denmark income tax treaty in effect, which reduces the withholding tax rate on dividends to 15 percent.

Absent a Treaty Provision, What Is the Statutory Withholding Tax