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What effect does a tax treaty have on the U.S. federal income taxation of foreign nationals and foreign corporations?

April 26, 2017corporations Federal foreign income nationals tax Taxation Treaty

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What effect does a tax treaty have on the U.S. federal income taxation of foreign nationals and foreign corporations?

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The major purpose of an income tax treaty is to mitigate international double taxation through tax reductions or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country.