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(ECI)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 generally do not lower statutory tax rates on effectively connected income (ECI); instead, they aim to avoid double taxation and define taxing rights between countries, among other benefits.

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