U.S. Tax Treaties: Application, Planning, and Compliance

Author: Robert J. Misey, Sara L Rapkin

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

U.S. tax treaties contain vital information for businesses as they provide an "alternative" version of tax law that often supersedes the Internal Revenue Code in international transactions. Properly advise your management team or clients on how to plan for tax savings and avoid key compliance problems by gaining a complete understanding of how the key provisions contained in most U.S. tax treaties can affect their business.

Gain practical insight and commentary on tax treaties and how to work with them through this two-hour CPE course presented by international tax practitioners, Rob Misey, J.D., LL.M., MBA, and Sara Rapkin, J.D. Using examples and case study illustrations, Mr. Misey and Ms. Rapkin explain must-know information on the tax treaty provisions and their operation. The presenters also focus on the important rules limiting treaty benefits to only certain entities, such as reduced withholding taxes and discuss the compliance rules, which require taxpayers to disclose any treaty benefits that conflict with the Internal Revenue Code.

Publication Date: July 2017

Designed For
Corporate tax and finance executives, directors, managers and staff; CPAs; CAs; Enrolled Agents; accountants, attorneys and business and financial advisors who work with and advise businesses that have cross-border operations and issues. All in-house and public practice professionals involved with international tax compliance and planning will benefit from this timely and insightful seminar.

Topics Covered

  • Common treaty provisions
  • Determining the country of residence for individuals and entities
  • Taxation of business profits attributable to permanent establishments: the various standards
  • Exemptions for personal services income
  • Reduced withholding rates on dividends, interest and royalties
  • Gains on the disposition of property
  • The limitation on benefits provisions that are designed to prevent treaty shopping
  • The Competent Authorities and their procedures
  • Compliance with respect to treaty-based return positions
  • Specific disclosure requirements and their waiver
  • Using Form W-8BEN and W-8BEN-E to show entitlement to treaty benefits

Learning Objectives

  • Describe the purpose of income tax treaties in the tax regimes of countries
  • Identify common provisions in the U.S. Model Treaty
  • Define the "tie-breaker" rule when a person qualifies as a resident in more than one country
  • Describe the rules by which any taxpayer claiming the benefits of a treaty by taking a tax return position that is in conflict with the Internal Revenue Code must disclose the position
  • Recognize qualifications for a permanent establishment
  • Identify dividend rates that are most likely to be taxes
  • Describe how to prevent treaty shopping
  • Identify treaty countries and the rates for foreign clientele
  • Recognize criteria that would most likely pass the connected services test
  • Describe exemptions or reductions by tax treaties
  • Identify and apply the six tests that place limitations on treaty benefits and prevent treaty shopping
  • Differentiate the mutual agreement procedure between the taxing authorities of two treaty countries in cases of double taxation
  • Identify which form a company needs to file with the IRS to show that it is exempt from taxation
  • Recognize when a company/citizen would need to file Form W8-BEN with the IRS in order to claim treaty benefits for U.S. tax withholding

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of U.S. international taxation concepts.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $189

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