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Tax Treaty Exemption

Visitors

If the nonresident alien visitor is a resident of a country with which the U.S. has entered into a tax treaty that contains an exemption under an independent personal services article, the payment can be exempted from the mandatory federal and state income tax withholding of 33.23%. In order to apply for tax treaty benefits, the visitor must complete Part I (all), Part II-  Lines 11a, 11b, 12d  and Part III (all) of Form 8233, Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual. .

If a nonresident alien visitor believes that they are eligible for tax treaty benefits, they should complete Form 8233.  Please note that as an independent contractor there is no required statement that must be attached. The completed form should be given to the person at the University who will be submitting the request for payment. Additionally, a U.S. Social Security Number or U.S. Individual Taxpayer Identification Number is required in order to be eligible for tax treaty benefits.

Also note that foreign national vistors are required to file U.S. Income Tax Returns if they claim tax treaty exemption from withholding on the payment.

Students/Teachers/Researchers

If the foreign national employee is a resident of a country with which the U.S. has entered into a tax treaty that contains an exemption under a student or teacher/researcher article, a portion of the employee's wages can be exempted from federal and state income tax withholding. In order to apply for tax treaty benefits, the nonresident alien employee must complete form 8233, Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual. As required by the Internal Revenue Service Regulations, this form needs to be completed and approved by the Internal Revenue Service annually to grant any potential tax treaty exemptions.

If a nonresident alien employee believes that they are eligible for tax treaty benefits, they should complete Part I (all), Part II Lines 11a, 11b, 12 c and Part III (all) Form 8233 and the applicable statement for their status (student or teacher/researcher) and country. See the following links below. The completed form should be taken to the Payroll department along with the employee's I-20 or DS-2019, visa, passport and I-94 card to apply for benefits. Additionally, a Social Security Number is required in order to be eligible for tax treaty benefits.

NOTE: If you have passed the substantial presence test and are now considered a resident alien for tax purposes, you must complete Form W-9, Request for Taxpayer Identification Number and Certification, in order to apply for treaty benefits.

Foreign national employees that receive compensation from the university are required to file U.S. Income Tax Returns.

Statement listed by country (select one) to attach to Form 8233 or Form W-9 for students, teachers and researchers only:

Student Employees (nonresident alien)

Teacher/Researcher Employees (nonresident alien)

Form W-9 - Complete entire form and applicable attachment. If you do not see a statement for your status and/or country, please contact Becky Laskowski at (574) 631-7051.

Student Employees (resident alien)

Teachers Researchers (resident alien)

If you have any questions on this form or your particular situation, please call Sue Walczewski (574) 631-8283 in the Payroll Department or Becky Laskowski (574) 631-7051 in the Tax Department.

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