Income tax treaties can allow tax benefits not otherwise afforded under the domestic law of treaty partners, and are thus an integral consideration for individuals with cross-border investments, business, presence, and activities. U.S. treaties often provide material foreign tax benefits for individuals considered U.S. residents, such as reduced rates, exemptions, withholding relief, and avoidance of tax residence status in the foreign country. Foreign treaty partners therefore have vested interests in ensuring those claiming U.S. residence under the relevant treaty qualify as such, often requiring individuals to secure United States Residency Certification (USRC).

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