Which of the following is not a benefit derived from an income tax treaty between the United States and another country?
A) Lower withholding tax rates imposed on cross border dividend and interest payments.
B) A higher threshold for determining when a person has nexus in the other country.
C) Lower statutory tax rates imposed on effectively connected income earned by a resident of one country in the other country.
D) A higher threshold before an individual is considered a resident of the other country for tax purposes.

Question

Quizplus · Accepted Answer

Income tax treaties do not decrease the statutory tax rates imposed on ECI. The treaty may exempt ECI from taxation, but it does not change the tax rates imposed on the income.

Which of the Following Is Not a Benefit Derived from an Income