Kay, a US citizen, took out a loan from a Paris bank, Credit Agricole, to buy a home in Belgium, where she lives and works. She pays $10,000 interest to the bank in Paris for the year. Which of the following is true.

Group of answer choices

Under the Belgium-US treaty Kay must withhold $1,500 in taxes

Under the France-US treaty Kay must withhold $1,500 in taxes.

Kay is not entitled to use either treaty and must withhold $3,000.

The interest is not subject to withholding.

Answer rating: 100% (QA)

Solution Under the FranceUS treaty Kay must withhold 1... View the full answer