A Double Taxation Treaty

Multiple Choice

A double taxation treaty:

A) imposes both a standard domestic tax rate on a foreign investor-s return and a special tax rate to ensure investors pay taxes in their home nation.
B) imposes a tax rate on the returns earned by foreign investors that is twice as high as the tax rate on domestic investors- returns.
C) exempts from taxation a specified portion of the return on an investment, or offers tax credits to foreign investors.
D) exempts from taxation all returns of investors whose earnings also are not taxed in their home nation.