Do tax treaties prevent double taxation?
Why treaties can reduce double taxation but do not automatically exempt U.S. citizens from U.S. tax or remove information-reporting duties.
Tax treaties can allocate taxing rights, provide relief, or coordinate credits, but they do not automatically eliminate U.S. filing or tax for a U.S. citizen. The treaty article, saving clause, taxpayer status, source of income, and disclosure rules must be reviewed. The Foreign Tax Credit is often part of the analysis, not a substitute for reading the treaty.