The United States generally taxes U.S. sourced fixed and determinable, annual or periodic income (FDAP) earned by non-U.S. persons by applying a withholding tax to the gross amount of income.

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This statement is generally true. The U.S. imposes a withholding tax on FDAP income earned by non-U.S. persons at a rate of 30%, unless reduced by treaty or other exceptions apply. However, there are exceptions and specific rules under the Internal Revenue Code that may affect the taxation of certain types of income earned by non-U.S. persons.

The United States Generally Taxes U