| Pub. 901, U.S. Tax Treaties |
2004 Tax Year |
Introductory Material
This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
What's New
New tax treaties. The United States has exchanged instruments of ratification for new income tax treaties with the United Kingdom and Japan
and new protocols for the
income tax treaties with Australia and Mexico. The provisions of these treaties and protocols are included in the appropriate
areas of this
publication. The effective dates are as follows:
United Kingdom. The provisions for withholding tax at source are effective for amounts paid or credited after May 1, 2003. For all other
taxes, the treaty is effective for tax periods beginning on or after January 1, 2004. An individual who was otherwise entitled
to treaty benefits
under Article 21 of the former treaty can continue to apply those provisions. A person who was otherwise entitled to benefits
under the former treaty
can elect to have that treaty apply in its entirety for a 12-month period following the date the new treaty would otherwise
apply.
Japan. The provisions for withholding tax at source are effective for amounts paid or credited after July 1, 2004. For all other
taxes,
the treaty is effective for tax periods beginning on or after January 1, 2005. An individual who was entitled to treaty benefits
under Article19
(teachers and researchers) or Article 20 (students and trainees) of the former treaty as of March 30, 2004, can continue to
apply those provisions. A
person who was otherwise entitled to benefits under the former treaty can elect to have that treaty apply in its entirety
for the 12-month period
following the date the new treaty would otherwise apply.
Australia. The provisions for withholding tax at source are effective for amounts paid or credited after July 1, 2003. For all other
taxes, the protocol is effective for tax periods beginning on or after January 1, 2004.
Mexico. The provisions for withholding tax on dividends are effective for amounts paid or credited on or after September 1, 2003.
For
all other taxes, the treaty is effective for tax periods beginning on or after January 1, 2004.
Reminders
Disclosure of a treaty-based position that reduces your tax. If you take the position that any U.S. tax is overruled or otherwise reduced by a U.S. treaty (a treaty-based position), you
generally must
disclose that position on your affected return.
U.S.–U.S.S.R. income tax treaty. The U.S.–U.S.S.R. income tax treaty remains in effect for the following members of the Commonwealth of Independent States:
Armenia,
Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. That treaty will remain in effect
until new treaties with
these individual countries are negotiated and ratified. Provisions of the U.S.–U.S.S.R. income tax treaty are discussed in
this publication
under Commonwealth of Independent States.
U.S.–China income tax treaty. The U.S.– China income tax treaty does not apply to Hong Kong.
Introduction
This publication will tell you whether a tax treaty between the United States and a particular country offers a reduced rate
of, or possibly a
complete exemption from, U.S. income tax for residents of that particular country.
Tables in the back of this publication show the countries that have income tax treaties with the United States, the tax rates
on different kinds of
income, and the kinds of income that are exempt from tax.
You should use this publication only for quick reference. It is not a complete guide to all provisions of every income tax
treaty.
Useful Items - You may want to see:
Publication
-
519
U.S. Tax Guide for Aliens
-
597
Information on the United States–Canada Income Tax Treaty
-
686
Certification for Reduced Tax Rates in Tax Treaty Countries
See How To Get Tax Help near the end of this publication for information about getting these publications and forms.
Obtaining copies of treaties.
You can get complete information about treaty provisions from the taxing authority in the country from which you receive
income or from the treaty
itself.
You can obtain the text of most of the treaties at
www.irs.gov/businesses/international. You can also
obtain the text of most of the treaties at the following address:
Department of Treasury
Office of Public Correspondence
1500 Pennsylvania Ave. NW — Rm. 3419
Washington, D.C. 20220
If you have specific questions about a treaty, you can get this information from most Internal Revenue Service offices
or from:
Internal Revenue Service
International Returns Section
P.O. Box 920
Bensalem, PA 19020–8518
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