Which of the following statements regarding the U.S.taxation of foreign persons is true?

Question

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Foreign persons are subject to a withholding tax on U.S.-source FDAP (Fixed, Determinable, Annual, or Periodic) income under the U.S. tax law. FDAP income includes, for example, dividends, interest, rents, and royalties from U.S. sources, which are all subject to a flat withholding tax rate of 30%. On the other hand, foreign persons are generally not subject to U.S. income tax on foreign-source income unless it is effectively connected with a U.S. trade or business.

Which of the Following Statements Regarding the U