Post by Schult on Dec 18, 2008 8:19:31 GMT 4
Two tax treaties and one protocol amending another one came into effect in the US on December 15.
The agreement with Iceland replaces the original from 1975. The Bulgarian treaty is new. The protocol with Canada, America's biggest trading partner, also became law on the same day
The treaties with Iceland and Bulgaria reduce source-country withholding taxes on certain dividends. They also include modern limitation of benefits provisions.
The protocol with Canada was first signed in 1980 and has been updated to include elimination of source-country withholding taxes on interest, and the mandatory binding arbitration of certain cases that cannot be resolved by the competent authorities within a specific period.
All are effective for tax years beginning on or after January 1 2009.