Which of the Following Statements Regarding a Non-U

question 125

Multiple Choice

Which of the following statements regarding a non-U.S. person's U.S. tax consequences is true?

• A) Non-U.S. persons may be subject to U.S. withholding tax on U.S.-source investment income.
• B) Non-U.S. individuals may be subject to U.S. income tax but non-U.S. corporations are never subject to U.S. income tax.
• C) Non-U.S. persons are subject to U.S. income or withholding tax only if engaged in a U.S. trade or business.
• D) Non-U.S. persons must be physically present in the United States before any U.S.-source income is subject to U.S. income or withholding tax.

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Definitions:

Polarity

The characteristics of a device that exhibits opposite quantities within itself: positive and negative.

Electrostatic Charge

A stationary electric charge built up on the surface of a material, typically caused by contact or friction.

Lightning Arrestor

A protective device that diverts surge voltages from lightning strikes away from electronic equipment or electrical installations, minimizing damage.

Lightning Discharge

A sudden electrostatic discharge during a thunderstorm between electrically charged regions of a cloud, between two clouds, or between a cloud and the ground.