Which of the Following Statements Regarding a Foreign Person's U

question 97

Multiple Choice

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

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

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Definitions:

LEO

Stands for Low Earth Orbit, which is the region of space around Earth at altitudes between 160 to 2,000 kilometers, used by satellites for a variety of applications.

MEO

Medium Earth Orbit, referring to satellites that orbit the earth at altitudes between Low Earth Orbit (LEO) and Geostationary Orbit (GEO), commonly used for navigation and communication.

Low-Power Transmitters

Electronic devices designed to broadcast signals over a short distance with limited power output, often used in personal or localized broadcasting scenarios.

GEO

Stands for Geostationary Earth Orbit, a type of orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.