Question
Can you explain your reasoning please FOR QUESTIONS 1, 2 AND 3: USco, a C corporation, makes a payment to is only shareholder, ForCo, a
Can you explain your reasoning please
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?
a. | 15% | |
b. | 30% | |
c. | 5% | |
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?
a. | 0% | |
b. | 5% | |
c. | 30% | |
d. | 15% |
3) If the payment is interest, what is the correct withholding rate?
a. | 15% | |
b. | 30% | |
c. | 5% | |
d. | 0% |
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