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.