United States: Foreign Tax May Be Reduced with US Residency Certificates
In order for US businesses with international operations to avoid incurring significant foreign tax liabilities, the United States has implemented a network of tax treaties with other countries. The treaties reserve reduced tax rates and other benefits solely for residents that can provide proof in the form of US residency certificates. US residents may request the residency certification by filing Form 8802 (Application for United States Residency Certification). The process of obtaining the certificate is notoriously slow and may take 10 or weeks or more. Flow-through entities (e.g., partnerships and S corporations) may apply for residency certifications in their own names.