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.
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: