Claiming Exemption

• In order to claim a tax treaty exemption from tax withholding, a nonresident alien must:

  • Qualify and meet specified conditions

  • Have a U.S. Taxpayer Identification Number (TIN)

  • File required treaty exemption and tax forms

    • Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual – To claim a tax treaty benefit for compensation income, including employee, consultant, honoraria, and independent contractor payments.

    • Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding – To claim a tax treaty benefit for a non-service scholarship/fellowship, stipend and royalty payment.

    • Form W-9 Request for Taxpayer Identification Number and Certification – Applicable only to resident aliens for tax purposes. Nonresident aliens should NOT sign this form.

• NRA Tax Office determines eligibility for tax treaty exemption.

• Tax treaty exemption claims must be renewed annually prior to January 1st in the following manner:

  • Compensation tax treaty exemption - Every year for the period in which treaty is valid.*

    *A new Form 8233 and Form W-4/MW 507 must be completed and signed annually.

  • Scholarship tax treaty exemption - Every 3 years for the period in which treaty is valid.