FOR QUESTIONS 1, 2 AND 3: USco, a C corporation, makes a payment to is only shareholder, ForCo, a company that is incorporated in country F, which has a tax treaty with the United States similar to the U.S. Model Treaty of 2016. ForCo is wholly-owned by ForParent, a country F corporation whose shares are publicly traded on the NASDAQ system.
1) If the payment is a dividend, what is the correct withholding rate?
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a. |
15% |
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b. |
30% |
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c. |
5% |
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d. |
0% |
2) What is the correct withholding rate if the payment is a dividend, and ForCo only owns 5% of the stock of USCo?
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a. |
0% |
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b. |
5% |
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c. |
30% |
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d. |
15% |
3) If the payment is interest, what is the correct withholding rate?
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a. |
15% |
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b. |
30% |
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c. |
5% |
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d. |
0% |
the question did not mention about which country having the treaty with us , so the answer has been given to the best of the information available
answer to 1. (c)
answer to 2.(c)
answer to 3.(d)
FOR QUESTIONS 1, 2 AND 3: USco, a C corporation, makes a payment to is only...
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