Which of the following is not a benefit derived from an income tax treaty between the United States and another country?

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.


Answer: C


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