Income Tax Treaty Practice for Tax Counsel: Planning and Structuring Transactions to Maximize Treaty-Based Benefits

This CLE/CPE course will provide tax counsel with a solid overview and explanation of key tax treaty provisions that tax counsel must master in structuring cross-border transactions. The panel will focus on individual, small business, and middle-market positions and will enable tax counsel to advise clients on availing themselves of treaty-based positions.

The United States has income tax treaties in force with many countries. The treaties' goals are to eliminate or reduce double income taxation. U.S. federal income tax benefits are available to non-U.S. enterprises and nonresident aliens (and some U.S. citizens living abroad). Benefits are also available to U.S. enterprises, citizens, and residents for foreign country income taxes. Tax advisers working with nonresident aliens or non-U.S. enterprises with U.S. investments or business activities must identify who is eligible for treaty benefits and how to claim and report treaty-based tax benefits. Similarly, tax advisers to U.S. individuals and enterprises with foreign-source income must identify who is eligible for treaty benefits (under both U.S. tax treaties and treaties between other jurisdictions) and how to claim and report the attendant benefits.

While each income tax treaty has its specific terms and requirements, most income tax treaties have common themes and terminology. For example, under most income tax treaties, taxpayers may claim exemption from source country taxation for personal services income. Other key provisions include reduction or exemption of withholding taxes on interest, dividends, and royalties. Tax attorneys advising cross-border entities or individuals with foreign assets need to understand applicable tax rules and recent changes to properly advise their clients.

Listen as our panel explains critical tax treaty provisions that tax counsel needs to know in drafting and negotiating cross-border ownership structures and transactions for individual, small business, and middle-market clients.