Which Treaties Qualify for the JGTRRAs Special Dividend Rate?

Section 302 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) reduced the income tax rate for qualifying dividends received by individuals to 15% (5% for taxpayers in the 10% and 15% tax brackets).  

Under Sec. 1(h)(11)(B)(i)(II) and (C), as added by JGTRRA Section 302(a), dividends from foreign securities qualify for the lower rate if they are traded on an established U.S. securities market. Foreign securities not traded on a U.S. securities market can qualify if certain treaty requirements are met. Notice 2003-69 lists the foreign countries whose tax treaties meet the JGTRRAs requirements. Exhibit 1 below  lists the countries mentioned in the notice.

From Michael D. Koppel, CPA, MBA, MSA, Gray, Gray & Gray, LLP, Westwood, MA