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Different limits apply to payments to non-resident aliens depending
on their relationship with the university and their country of origin.
The limits are based on the individual's classification, as follows:
- Teacher/Researchers must be on the university payroll
in a faculty or administrative / professional capacity. A person who
is a teacher or researcher by profession, but who is not on
the university payroll (e.g. someone who gives a one-time lecture
and receives an honorarium) should be listed as an independent contractor
rather than a teacher / researcher for purposes of compensation.
- Students must be students employed by the university through
the payroll system.
- Scholarship/Fellowship pertains to students who receive scholarship
or fellowship payments from the university.
- Independent Contractors are non-resident aliens who provide
compensable services or goods to the university and do not fall into
any of the preceding classifications.
An explanation of the different columns in the table:
- Time Limit - the length of time the individual can be visiting
the U.S. before the tax withholding exemption expires.
- Article - the article of the specific treaty that applies
between the U.S. and the related country.
- Compensation Limit - the maximum amount of compensation exempt
from tax withholding during the specific time limit.
To see whether a specific country has a tax treaty with the United
States, you must refer to IRS Publication 901. Use the link below to
see this publication:
IRS
Publication 901 (Adobe Acrobat)
IRS
Publication 901 (HTML format)
PAYMENTS TO INDIVIDUALS FROM FOREIGN COUNTRIES ARE GENERALLY
SUBJECT TO A 30% INCOME TAX WITHHOLDING. THIS IS A FEDERAL REQUIREMENT
AND IS NOT SUBJECT TO NEGOTIATION.
CERTAIN COUNTRIES HAVE TAX TREATIES THAT EXEMPT THEIR CITIZENS
FROM THIS TAX WITHHOLDING IF THE INDIVIDUAL REQUESTS AN EXEMPTION
BY COMPLETING IRS FORM 8233. IT IS THE RESPONSIBILITY OF THE INDIVIDUAL
BEING PAID TO SUBMIT THE FORM; ACCOUNTING SERVICES WILL NOT NOTIFY
DEPARTMENTS IF THE FORM IS NOT ATTACHED.
NOT EVERY COUNTRY HAS A TAX TREATY WITH THE UNITED STATES, AND
EVEN PAYMENTS TO INDIVIDUALS FROM TREATY COUNTRIES MAY NOT QUALIFY
FOR THE EXEMPTION.
DEPARTMENTS ARE ADVISED TO NOTIFY POTENTIAL PAYEES FROM FOREIGN
COUNTRIES OF THIS WITHHOLDING.
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IRS Form 8233
Click here
for an Adobe Acrobat version of IRS Form 8233.
Instructions for IRS Form 8233
Click here
for an Adobe Acrobat version of the instructions for completing IRS
Form 8233.
Special Notes pertaining to the former Soviet Union:
The U.S.-U.S.S.R. treaty remains intact for members of the Commonwealth
of Independent States (C.I.S.). That treaty will remain in effect
until new treaties with individual C.I.S. members are negotiated and
ratified. C.I.S. members include Armenia, Azerbaijan, Belarus,
Georgia, Krygyzstan, Moldova, Takikistan, Turkmenistan, Ukraine, and
Uzbekistan. The tax treaty does not apply to the Baltic States
of Estonia, Latvia and Lithuania. In addition, the U.S. - U.S.S.R
treaty does not apply to citizens fo Russia but will be covered under
the separate treaty between the U.S. and Russia. Likewise, the
U.S.-U.S.S.R. treaty does not apply to citizens of Kazakhstan becuase
the Kazakh Parliament has suspended all treaties and is awaiting "release"
of a new treaty.
To see whether the United States has a tax treaty with a particular
country, select the letter corresponding to the first first letter of
the country's name from the list below. (Letters with no hyperlink have
no associated countries.)
For a complete list and description of tax treaties between the United
States and other countries, refer to IRS
Publication 901 (available in Adobe Acrobat Format).
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