US Tax Treaties

Did you know that the United States has tax treaties with over 60 foreign countries? Understanding and applying the provisions of the treaties is not easy. US Expat Tax Help can help Americans and Green Card Holders living abroad correctly apply the provisions of the treaties. Contact us today for assistance with tax treaties.

Tax treaties can cover various forms of taxes including income tax and inheritance tax. The US tax treaties offer residents (not necessarily citizens) of foreign countries such as Americans living abroad the opportunity to have certain items of income they receive from sources within the United States taxed at a reduced rate or to be exempt from U.S. taxes. These reduced rates and exemptions vary among countries and specific items of income.

These treaties also offer residents or citizens of the United States to be taxed at a reduced rate or to be exempt from foreign taxes on certain items of income they receive from sources within foreign countries. Most of the income tax treaties contain "saving clause" which prevents a citizen or resident of the United States from using the provisions of a tax treaty in order to avoid taxation of U.S. source income.

What is important to remember is that if the treaty does not cover a particular kind of income or if there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for the applicable U.S. tax return.

Many of the US states tax income which is sourced in their states. Therefore, you should contact us to find out whether any state tax applies to any of your income. Some states of the United States do not honor the provisions of tax treaties.

For complete texts of the treaties, visit the IRS website at http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z

The United States currently has tax treaties with the following countries:

Armenia

Income Tax Treaty - 1973

Australia

Income Tax Treaty - 1982

Technical Explanation - 1982

Protocol - 2001

Technical Explanation - 2001

Austria

Income Tax Treaty - 1996

Azerbaijan

Income Tax Treaty - 1973

Bangladesh

Income Tax Treaty - 2006 

Technical Explanation - 2006
 

Barbados

Income Tax Treaty - 1984

Technical Explanation - 1984

Protocol - 2004

Technical Explanation - 2004

Belarus

Income Tax Treaty - 1973

Belgium

Income Tax Treaty - 1970

Technical Explanation - 1970

Income Tax Treaty - 2006

Protocol - 2006

Technical Explanation - 2007

Mutual Agreement Procedure Arbitration Announcement

Memorandum of Understanding between the U.S. and Belgium - 2009

Arbitration Board Operating Guidelines - 2009

Bulgaria

Income Tax Treaty - 2007

Protocol - 2007

Protocol - 2008

Canada

Income Tax Treaty and Protocols 1, 2, 3, and 4 - 1980

Technical Explanation - 1980

Protocol - 2007

Technical Explanation - 2008

China

Income Tax Treaty - 1984

Technical Explanation - 1984

Cyprus

Income Tax Treaty - 1984

Technical Explanation - 1984

Czech Republic

Income Tax Treaty - 1993

Technical Explanation - 1993

Denmark

Income Tax Treaty - 1948

Income Tax Treaty - 2000

Technical Explanation - 2000

Protocol - 2006

Technical Explanation - 2007

Egypt

Income Tax Treaty - 1980

Technical Explanation - 1980

Estonia

Income Tax Treaty - 1998

Technical Explanation - 1998

Finland

Income Tax Treaty - 1989

Technical Explanation - 1989

Protocol - 2006

Technical Explanation - 2006

France

Income Tax Treaty - 1994

Technical Explanation - 1994

Protocol - 2004

Technical Explanation - 2004

Protocol - 2009

Technical Explanation - 2009

Memorandum of Understanding - 2009

Georgia

Income Tax Treaty - 1973

Germany

Income Tax Treaty - 1989

Technical Explanation - 1989

Protocol - 2006

Technical Explanation - 2007

Mandatory Arbitration Interim Guidance - 2007

Greece

Income Tax Treaty - 1950

Hungary

Income Tax Treaty - 1979

Technical Explanation - 1979

Iceland

Income Tax Treaty - 1975

Technical Explanation - 1975

Treaty and Protocol 2007

Technical Explanation - 2008

India

Income Tax Treaty - 1989

Technical Explanation - 1989

Indonesia

Income Tax Treaty - 1988

Technical Explanation - 1988

Ireland

Income Tax Treaty - 1997

Technical Explanation - 1997

Amending Convention - 1999

Israel

Income Tax Treaty - 1975

Technical Explanation - 1975
 

Italy

Income Tax Treaty - 1984

Technical Explanation - 1984

Income Tax Treaty - 1999

Technical Explanation - 1999

Jamaica

Income Tax Treaty - 1980

Technical Explanation - 1980

Japan

Income Tax Treaty - 1971

Technical Explanation - 1971

Income Tax Treaty -  2003

Protocol - 2003

Technical Explanation - 2003

Kazakhstan

Income Tax Treaty - 1993

Korea

Income Tax Treaty - 1976

Technical Explanation - 1976

Kyrgyzstan

Income Tax Treaty - 1973

Latvia

Income Tax Treaty - 1998 

Technical Explanation - 1998

Lithuania

Income Tax Treaty - 1998

Technical Explanation - 1998

Luxembourg

Income Tax Treaty - 1962

Income Tax Treaty - 1996

Malta

Income Tax Treaty - 2008

Technical Explanation - 2008

Mexico

Income Tax Treaty - 1992

Technical Explanation - 1992

Protocol - 2003

Technical Explanation - 2003

Moldova

Income Tax Treaty - 1973

Morocco

Income Tax Treaty - 1977

Technical Explanation - 1977

Netherlands

Income Tax Treaty  - 1992

Technical Explanation - 1992

Protocol - 2004

Technical Explanation - 2004

New Zealand

Income Tax Treaty - 1982

Protocol - 2008

Technical Explanation - 2008

Norway

Income Tax Treaty - 1971

Pakistan

Income Tax Treaty - 1957

Philippines

Income Tax Treaty - 1976

Poland

Income Tax Treaty - 1974

Portugal

Income Tax Treaty - 1994

Romania

Income Tax Treaty - 1973

Russia

Income Tax Treaty - 1992

Slovak Republic

Income Tax Treaty - 1993

Slovenia

Income Tax Treaty - 1999

Technical Explanation - 1999

South Africa

Income Tax Treaty - 1997

Technical Explanation - 1997

Spain

Income Tax Treaty - 1990

Sri Lanka

Technical Explanation - 2002

Protocol - 2002

Sweden

Income Tax Treaty - 1994

Protocol - 2005

Technical Explanation - 2005

Switzerland

Income Tax Treaty - 1996

Technical Explanation - 1996

Tajikistan

Income Tax Treaty - 1973

Thailand

Income Tax Treaty 1996

Technical Explanation - 1996

Trinidad

Income Tax Treaty - 1970

Tunisia

Income Tax Treaty - 1985

Turkey

Income Tax Treaty - 1996

Turkmenistan

Income Tax Treaty - 1973

Ukraine

Income Tax Treaty - 1994

Union of Soviet Socialist Republics (USSR)

Income Tax Treaty - 1973

United Kingdom

Income Tax Treaty - 1975

Technical Explanation - 1975

Income Tax Treaty - 2001

Technical Explanation - 2001 

Protocol - 2001 

Exchange of Notes - 2001

United States Model

Income Tax Treaty - 1996

Technical Explanation - 1996

Income Tax Treaty - 2006

Technical Explanation - 2006

Uzbekistan

Income Tax Treaty - 1973

Venezuela

Income Tax Treaty - 1999

Technical Explanation - 1999

Source: www.irs.gov