The U.S. IRS has published a memorandum dated 4 November 2022 from the Office of Chief Counsel concerning treaty benefits for distributions and gains with respect to the stock of a Domestic International Sales Corporation (DISC). The main issue and conclusion are as follows: --- ISSUE Are foreign taxpayers permitted to claim a reduced rate of U.S. tax on their DISC distributions under Article 101 (Dividends) of an applicable U.S. income tax treaty by taking the position that, pursuant to Article 5 (Permanent Establishment), their DISC distributions are not attributable to a permanent establishment within the United States? CONCLUSION No....