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US-Canada Tax Treaty.pdf

Letter Secretary Snow.pdf

🔗 Source: nftc.org

📊 Size: 21 KB

👤 Author: Owner

⬇️ Downloads: 86

Summary

The National Foreign Trade Council (NFTC) is urging the US Treasury to eliminate withholding tax on cross-border interest payments between the US and Canada, including those between related parties. The current US-Canada tax treaty imposes a 10% withholding tax on interest, which is out of step with the US model treaty and recent agreements. The NFTC argues that distinguishing between related and unrelated party loans would distort the lending process and is not economically justified. Transfer pricing rules and thin capitalization limitations can prevent abuses, making it unnecessary to retain a positive withholding tax on interest paid to related party lenders. The NFTC requests that the US Treasury discuss this matter with the Canadian government to ensure equal benefits for related and unrelated party loans.

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Description

The National Foreign Trade Council advocates for a revised US-Canada tax treaty. Key negotiations focus on withholding tax rates. A revised treaty aims to facilitate trade and travel between the two countries.

Technical Information

File Format: PDF
File Size: 21 KB
Pages: 2
Language: EN
Author: Owner
Total Downloads: 86
Last Updated: 1 week ago

Document Overview

This PDF document about US-Canada Tax Treaty provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into US-Canada Tax Treaty.