Come to an Agreement: Benefits of U.S. Income Tax Treaties with Foreign Governments

The United States has signed income tax treaties/income tax conventions with nearly 70 countries. Tax treaties allow U.S. citizens (and sometimes residents) to be taxed at either reduced income tax rates or exempt from taxation altogether on specified income items sourced to the other treaty signator. For example, these treaties typically exempt from taxation in the host country compensation earned by a citizen or resident of the non-host country working in and sourced to the host country, typically up to 183 days.

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