Publication 901 - U.s. Tax Treaties - Internal Revenue Service Page 2
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34Useful Items
complete exemption from, U.S. income tax for
Form 8833 does not apply to a reduced rate of
residents of that particular country.
withholding tax on noneffectively connected in
You may want to see:
come, such as dividends, interest, rents or roy
You should use this publication only for
alties, or to a reduced rate of tax on pay re
Publication
quick reference. It is not a complete
!
ceived for services performed as an employee,
guide to all provisions of every income
519
U.S. Tax Guide for Aliens
including pensions, annuities, and social secur
CAUTION
tax treaty.
ity. For more information, see Publication 519
597
Information on the United States–
For more detailed information on treaty ben
and the Form 8833 instructions.
Canada Income Tax Treaty
efits, you should consult the text of the applica
If you fail to file Form 8833, you may have to
ble treaty. The treaties are available at
pay a $1,000 penalty. Corporations are subject
Form (and Instructions)
to a $10,000 penalty for each failure.
Taxpayers/Tax-Treaty-Tables.
8833
TreatyBased Return Position
Disclosure Under Section 6114 or
Tax Exemptions
Comments and suggestions. We welcome
7701(b)
your comments about this publication and your
Provided by Treaties
See
How To Get Tax Help
near the end of this
suggestions for future editions.
publication for information about getting these
You can send us comments from
www/
publications and forms.
irs.gov/formspubs. Click on “More information”
This publication contains discussions of the ex
and then on “Give us feedback”.
emptions from tax and certain other effects of
Application of Treaties
the tax treaties on the following types of in
Or, you can write to:
come.
Internal Revenue Service
Pay for certain personal services per
Business Forms and Publications Branch
formed in the United States.
The United States has income tax treaties
SE:W:CAR:MP:T:B
Pay of a professor, teacher, or researcher
with a number of foreign countries. Under these
1111 Constitution Ave. NW, IR6526
who teaches or performs research in the
treaties, residents (not necessarily citizens) of
Washington, DC 20224
United States for a limited time.
foreign countries are taxed at a reduced rate, or
Amounts received for maintenance and
are exempt from U.S. income taxes on certain
studies by a foreign student or apprentice
We respond to many letters by telephone.
items of income they receive from sources
who is here for study or experience.
Therefore, it would be helpful if you would in
within the United States. These reduced rates
Wages, salaries, and pensions paid by a
clude your daytime phone number, including
and exemptions vary among countries and spe
foreign government.
the area code, in your correspondence.
cific items of income.
Although we cannot respond individually to
Personal Services Income
If there is no treaty between your country
each comment received, we do appreciate your
and the United States, you must pay tax on the
feedback and will consider your comments as
income in the same way and at the same rates
we revise our tax products.
Pay for certain personal services performed in
shown in the instructions for Form 1040NR.
the United States is exempt from U.S. income
Ordering forms and publications. Visit
Also see Publication 519.
tax if you are a resident of one of the countries
to download forms and
discussed below, if you are in the United States
Many of the individual states of the United
publications.
Otherwise,
you
can
go
to
for a limited number of days, and if you meet
States tax the income of their residents. There
to order current and
certain other conditions. For this purpose, the
fore, you should consult the tax authorities of
prior year forms and instructions. Your oder
word “day” means a day during any part of
the state in which you live to find out if that state
should arrive within 10 business days.
which you are physically present in the United
taxes the income of individuals and, if so,
States.
whether the tax applies to any of your income.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Tax treaties reduce the U.S. taxes of resi
Terms defined. Several terms appear in many
Bloomington, IL 617056613
dents of foreign countries. With certain excep
of the discussions that follow. The exact mean
tions, they do not reduce the U.S. taxes of U.S.
ings of the terms are determined by the particu
Tax questions. If you have a tax question
citizens or residents. U.S. citizens and residents
lar tax treaty under discussion; thus, the mean
not answered by this publication, check
are subject to U.S. income tax on their world
ings vary among treaties. The definitions that
IRS.gov and
How To Get Tax Help
at the end of
wide income.
follow are, therefore, general definitions that
this publication.
may not give the exact meaning intended by a
Treaty provisions generally are reciprocal
particular treaty.
Obtaining copies of treaties. You can get
(apply to both treaty countries); therefore, a
The terms fixed base and permanent estab
complete information about treaty provisions
U.S. citizen or resident who receives income
lishment generally mean a fixed place of busi
from the taxing authority in the country from
from a treaty country may refer to the tables in
ness, such as a place of management, a
which you receive income or from the treaty it
this publication to see if a tax treaty might affect
branch, an office, a factory, a warehouse, or a
self.
the tax to be paid to that foreign country. For
mining site, through which an enterprise carries
You can obtain the text of most of the trea
eign taxing authorities sometimes require certifi
on its business.
ties at
cation from the U.S. Government that an appli
The term borne by generally means having
You can also obtain the text of most of the trea
cant filed an income tax return as a U.S. citizen
ultimate financial accounting responsibility for,
ties at the following address:
or resident, as part of the proof of entitlement to
or providing the monetary resources for, an ex
the treaty benefits. See Form 8802, Application
penditure or payment, even if another entity in
Department of the Treasury
for United States Residency Certification, to re
another location actually made the expenditure
Office of Public Correspondence
quest a certification.
or payment.
1500 Pennsylvania Ave. NW — Rm. 3419
Washington, D.C. 20220
Disclosure of a treaty-based position that
Australia
reduces your tax. If you take the position that
any U.S. tax is overruled or otherwise reduced
Income that residents of Australia receive for
by a U.S. treaty (a treatybased position), you
performing personal services as independent
generally must disclose that position on Form
contractors or selfemployed individuals (inde
8833 and attach it to your return. If you are not
pendent personal services) in the United States
required to file a return because of your
treatybased position, you must file a return
anyway to report your position. The filing of
Page 2
Publication 901 (September 2016)
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