Foreign investment refers to the investments made by citizens or governments of one country into the industries of another country, including investments within a country by foreigners. The income tax treatment of foreign investment income is often governed by tax treaties between the country of the investment owner and the country where the investment is located.
An official interpretation by the IRS of the internal revenue laws, related statutes, tax treaties, and regulations, published in the Cumulative Bulletin. Revenue rulings are issued only by the National Office of the IRS and are published for the information and guidance of taxpayers, IRS officials, and others concerned.
Tax treaties are agreements negotiated between two or more countries to avoid double taxation of income earned in one country by residents of another and to prevent tax evasion.
