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US Tax Treaty Quick Reference

Key provisions from US income tax treaties — reduced withholding rates, pension treatment, tie-breaker rules and Social Security agreements

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Treaty Basics

How US Tax Treaties Work
US taxes citizens worldwideAlways
Treaty overrides domestic law?Yes, if beneficial
Savings ClauseUS retains right to tax citizens
Treaty election required?Yes — Form 8833
Number of US tax treaties~68 countries
Totalization agreements30 countries

Savings Clause

Most US treaties contain a savings clause — the US reserves the right to tax its citizens and green card holders as if the treaty had not entered into force. This means most treaty benefits do not apply to US citizens living abroad — but key exceptions often include:

  • Pension income (retirement article)
  • Social Security benefits
  • Specific relief provisions noted in treaty

Key Treaty Articles

Art. 4 — Residence
Tie-breaker rules when both countries claim you as resident
Art. 10 — Dividends
Withholding tax rates on dividend payments
Art. 11 — Interest
WHT on interest payments, bank interest
Art. 17/18 — Pensions
Government & private pension taxation rights
Art. 21 — Other Income
Catch-all for income not covered elsewhere
Art. 25 — Non-Discrimination
Equal tax treatment for nationals
⚠️ Form 8833 Required

If you take a treaty position, you must attach Form 8833 (Treaty-Based Return Position Disclosure) to your tax return. Failure to do so may result in a $1,000 penalty ($10,000 for C-corps).

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