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I think this is independent of culture. Being challenged by a person low on the hierarchy so openly does look untactful on your part.

I don't think you understand. Or if you do, we have very different ideas about what's important.

He was my direct manager, but we were literally a team of two, working on a project together.

He was unabashedly wrong - not slightly wrong, not a bit confused, not misinterpreted - just flat out wrong.

When I told him, I didn't make a fuss, I didn't make a big deal, I just told him calmly "no, that's wrong, X because Y".

Literally my only other option was to say nothing, and let the project waste time because of his incorrect assumptions/ideas.