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good afternoon this is sean golden with golden golden here to discuss the very basics of how to read a tax treaty and how to analyze it so essentially what happens is the united states has entered into various bilateral tax treaties with many different countries across the globe more than 50. when theres a tax treaty in place what happens is that it can impact the ability of the country or countries referred to normally as contracting states within the treaties to tax residents right with that said theres always something called the savings class the savings clause which is brutal for u.s citizens because basically what it does is it still allows the us to docHub their hand in and tax the u.s citizen whos living abroad despite what might be in the tax treaty with that said theres still some exceptions to the savings clause which basically says the savings clause wont apply to these specific sections but why dont we jump in here for a moment and kind of go through i generally base
