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Tax treaty

An agreement between the US and another country that lowers withholding, decides which country taxes what, and relieves double taxation.

The short answer, then the detailChecked September 2026

The detail

What it means in practice.

The US has income tax treaties with about sixty countries. A treaty sets lower withholding rates on dividends, interest and royalties, defines when a business has a permanent establishment in the other country, and gives relief from double taxation. Without a treaty, the standard 30% rate applies and relief depends on your own country's rules. Each of our country pages says which applies.

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