U.S. Exemption from Withholding Tax on Interest Income from the U.S.
The withholding tax rate on income originating from the U.S. for non-Americans is 30%. The Portfolio Interest Exemption (PIE) mechanism exempts interest payments made by a U.S. resident (individual or corporation) to a foreign lender from withholding tax. This exemption is outlined in 26 CFR Section 871(h) of the IRS. Between Israel and the U.S., […]
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