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

question 67

Multiple Choice

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

• A) A higher threshold for determining when a person has nexus in the other country.
• B) A higher threshold before an individual is considered a resident of the other country for tax purposes.
• C) Lower withholding tax rates imposed on cross border dividend and interest payments.
• D) Lower statutory tax rates imposed on effectively connected income earned by a resident of one country in the other country.

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Definitions:

Armed Forces

The military forces of a country, including the army, navy, air force, and sometimes others, responsible for defense and security.

IMF

The International Monetary Fund, an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, and reduce poverty around the world.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.