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USco, a C corporation, makes a payment to its only shareholder, ForCo, a company that is...

USco, a C corporation, makes a payment to its only shareholder, ForCo, a company that is incorporated in country F, which has a tax treaty with the United States similar to the U.S. Model Treaty of 2016. ForCo is wholly-owned by ForParent, a country F corporation whose shares are publicly traded on the NASDAQ system. If the payment is interest, what is the correct withholding rate?

Question 21 options:

1)

 15%.

2)

 30%.

3)

 5%.

4)

 0%.
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