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Tax Treaty Rates by Country 2024

Certain countries have a special agreement with the United States regarding taxes. A tax treaty is established between a foreign country and the United States, usually through various articles. Residents of the listed countries can withhold a lower tax amount on sales and income made from selling goods to customers from the United States.

0% Tax Treaty Countries

Several countries get to enjoy a 0% tax treaty rate. This rate means that there are no taxes due to on the sales made to customers living in the United States. Many countries that receive a 0% tax treaty were granted this privilege through article 3. Other countries have this treaty enacted through article 12. A handful of 0% countries earn their right through article 14.

Article 3 means the tax treaty is part of the U.S. Treasury’s general definition for the country, while article 12 is defined by royalties shared within the foreign country. Further, article 14 means that countries receive the 0% tax treaty through Independent Personal Services.

Some of the countries that enjoy a 0% tax treaty rate include Armenia, Austria, Azerbaijan, Belarus, Belgium, Canada, Cyprus, Czech Republic, Denmark, Finland, Greece, Germany, Georgia, Hungary, Iceland, Ireland, Italy, Japan, Luxemburg, Moldova, Netherlands, Norway, Pakistan, Russia, Slovak, South Africa, Sweden, Switzerland, and the United Kingdom.

5% Tax Treaty Countries

Several countries get to enjoy slightly lower taxes, at 5%, on the sales of products to U.S. citizens. These countries include Australia, Barbados, Bulgaria, New Zealand, Poland, Slovenia, Spain, and Thailand.

10% Tax Treaty Countries

Although certainly higher than the last two brackets, certain countries enjoy a lower 10% tax withholding on goods sold to citizens of the United States. Many of these countries have earned their 10% tax treaty rate from article 12, although a handful of countries have this benefit granted from article 13. The countries that get the privilege of the 10% tax treaty include Bangladesh, China, Estonia, Indonesia, Israel, Jamaica, Kazakhstan, Korea, Latvia, Lithuania, Malta, Mexico, Morocco, Portugal, Romania, Sri Lanka, Turkey, Ukraine, Venezuela, and Vietnam.

15% Tax Treaty Countries

The highest bracket for tax treaty countries is 15% withholding on sales made to U.S. citizens. This bracket is the highest yet still constitutes a portion of withholding, marking significant savings for manufacturers and businesses in other countries selling to the United States. Some of the countries included in the 15% tax treaty bracket include Egypt, India, Tunisia, and the Philippines.

  • A tax treaty is an agreement between two countries to reduce the tax rates for people living in one country and earning income in another, so as to avoid double taxation (which often leads to tax evasion).
  • Treaty rates displayed apply to the US and the listed countries. Rates between other counties and one another may differ from US rates.
  • For comparison, US rates and dividends for non-treaty countries are 30% in every category shown.
  • Tax code is complex and nuanced. The data displayed are not meant to be a complete guide to all provisions of every income tax treaty.
  • Tax treaty rates and eligibility may vary in specific circumstances, such as the source of the income and whether the taxpayer has a permanent establishment (PE) in the taxing country.
  • Rates displayed for Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, and Uzbekistan are part of a collective tax treaty with the Commonwealth of Independent States (though Russia has its own agreement).
  • Tax rates listed in the Royalties column address five types of royalties, separated by /: industrial equipment royalties / know-how/other industrial royalties / patent royalties / motion picture and television royalties / and copyright royalties.

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Country
US Obligors in General
Qualifying for Direct Dividend Rate
Royalties
US Corporations in General
Armenia0 (06)300/0/0/0/030
Australia10 (04, 05, 13, 17)05 (18)NA/5/5/5/515 (18)
Austria0 (05, 13, 24)05 (08)NA/0/0/10/015 (08)
Azerbaijan0 (06)300/0/0/0/030
Bangladesh10 (05, 10, 13)10 (18)NA/10/10/10/1015 (18)
Barbados505 (08)NA/5/5/5/515 (08)
Belarus0 (06)300/0/0/0/030
Belgium0 (05, 13, 24)05 (18, 20, 22)NA/0/0/0/015 (18, 22)
Bulgaria05 (05, 13, 17, 24)05 (18, 22)NA/5/5/5/510 (18, 22)
Canada0 (05, 13)05 (18)10/0/0/10/015 (18)
China10107/10/10/10/1010
Cyprus10 (17)5NA/0/0/0/015
Czech Republic0 (13)05 (08)10/10/10/10/1015 (08)
Denmark0 (05, 13, 24)05 (18, 20, 22)NA/0/0/0/015 (18, 22)
Egypt15 (03)05 (03)NA/30/15/NA/1515 (03)
Estonia10 (05, 13)05 (08)5/10/10/10/1015 (08)
Finland0 (05, 13, 24)05 (18, 20, 22)NA/0/0/0/015 (18, 22)
France0 (04, 05, 13, 24)05 (18, 20)NA/0/0/0/015 (18)
Germany0 (05, 13, 24)05 (18, 20, 22)NA/0/0/0/015 (18, 22)
Greece0300/0/0/30/030
Hungary05NA/0/0/0/015
Iceland0 (05, 13, 24)05 (18, 22, 24)NA/5/0/5/015 (18, 22)
India15 (11)15 (08)10/15/15/15/1525 (08)
Indonesia101010/10/10/10/1015
Ireland0 (05, 13)05 (18, 24)NA/0/0/0/015 (18)
Israel17.5 (11, 15)12.5 (08)NA/15/15/10/1025 (08)
Italy10 (13, 19)05 (18)5/8/8/8/015 (18)
Jamaica12.510NA/10/10/10/1015
Japan0 (05, 13, 21)05 (18, 20, 21, 22)NA/0/0/0/010 (18, 21, 22)
Kazakhstan10 (13)05 (14)10/10/10/10/1015 (14)
Kyrgyzstan0 (06)300/0/0/0/030
Latvia10 (05, 13)05 (08)5/10/10/10/1015 (08)
Lithuania10 (05, 13)05 (08)5/10/10/10/1015 (08)
Luxembourg0 (03, 05, 13)05 (08)NA/0/0/0/015 (08)
Malta10 (13)05 (24)NA/10/10/10/1015 (24)
Mexico15 (13, 16, 22)05 (18, 20, 22)10/10/10/10/1010 (18, 22)
Moldova0 (06)300/0/0/0/030
Morocco1510NA/10/10/10/1015
Netherlands0 (24)05 (20, 23)NA/0/0/0/015
New Zealand10 (05, 13, 17, 24)05 (18, 20)NA/5/5/5/515 (18)
Norway1015NA/0/0NA/015
Pakistan3015NA/0/0/NA/030
Philippines1520NA/15/15/15/1525
Poland05NA/10/10/10/1015
Portugal10 (04, 13)05 (08)10/10/10/10/1015 (08)
Romania1010NA/15/15/10/1010
Russia0 (13)05 (14)NA/0/0/0/010 (14)
Slovakia0 (13)05 (08)10/10/10/0/015 (08)
Slovenia05 (13)05 (18)NA/5/5/5/515 (18)
South Africa0 (05, 13)05 (08)NA/0/0/0/015 (08)
South Korea1210NA/15/15/10/1015
Spain0 (05, 13, 24)05 (18, 20, 22, 24)NA/0/0/0/0 (9,24)15 (18, 22)
Sri Lanka10 (05, 13)15 (23)5/10/10/10/1015 (23)
Sweden0 (05, 13, 24)05 (18, 20, 22)NA/0/0/0/015 (18, 20)
Switzerland0 (13)05 (08)NA/0/0/NA/015 (08)
Tajikistan0 (06)300/0/0/0/030
Thailand15 (11, 13)10 (08)8/15/15/5/515 (08)
Trinidad and Tobago3030NA/15/15/NA/030
Tunisia1514 (08)10(12)/15/15/15/1520 (08)
Turkey15 (05, 11, 13)15 (08)5/10/10/10/1020 (08)
Ukraine005 (14)NA/10/10/10/1015 (14)
United Kingdom0 (05, 13, 21)05 (18, 20, 21)NA/0/0/0/015 (18, 21)
Uzbekistan0 (06)300/0/0/0/030
Venezuela10 (05, 13, 17)05 (18)5/10/10/10/1015 (18)
showing: 64 rows