Tax Treaty Benefits

General Information

A foreign individual may be eligible to claim exemption from or a reduced rate for withholding on certain types of income:

• Employee Compensation, Honoraria, or Independent Contractor Payments
  
  
• Scholarship, Fellowship, Grant, or Royalty Payments

A foreign individual must meet eligibility requirements based on IRS regulations and University administrative procedures to claim exemption from withholding.

An individual must have a tax identification number to apply for a tax treaty benefit.

To claim exemption from withholding on Employee Compensation, Honoraria, or Independent Contractor Payments:

1. Complete Part I, II, and III of IRS Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien.
   
   
2. Complete an affidavit for the country from which you are claiming the treaty benefit. Contact Tax Services for the appropriate affidavit (only needed for employee income).
   
   
3. Submit IRS Form 8233, the completed FNIF, and copies of the individual's immigration documents to Tax Services before a payment is requested.
   
   
4. Tax Services will analyze each person's visa history, payment type, and specific treaty language to determine eligibility for the exemption.
   
   
5. If an individual is considered eligible by Tax Services for the treaty exemption, Tax Services will complete Part IV of IRS Form 8233 and apply for the exemption.

Time Limit

1. IRS Form 8233 is only valid for one calendar year.
   
   
2. In order to renew an exemption, an individual must forward to Tax Services a new completed IRS Form 8233; a completed FNIF form; copies of current immigration documents; and the appropriate affidavit, in December of the current year for the following year.

Required Forms

1. IRS Form 8233
   
   
2. FNIF

To claim exemption from withholding on Scholarship, Fellowship, Grant, or Royalty Payments:

1. Complete IRS Form W-8 BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding.
   
   
2. Submit Form W-8 BEN, a completed FNIF, and copies of the individual's immigration documents to Tax Services before payment is made.
   
   
3. Tax Services will review the individual's visa history, payment type, and specific treaty language to determine eligibility for the exemption.

Time Limit

1. IRS Form W-8BEN is valid for 3 calendar years as long as the individual's immigration status remains unchanged.

Required Forms

1. IRS Form W-8 BEN
   
   
2. FNIF