Non-Resident Alien Employment Tax Treaty Summary
Tax Treaty Benefits
Nonresident alien students, teachers and researchers may be allowed a tax exemption on compensation received through payroll if covered by a tax treaty. As a general rule, most treaties that cover professors, teachers or researchers have time limits. Covered students usually have both a time and dollar limit. Some countries also impose a retroactive loss of treaty benefits if their stay exceeds the time limit. If a tax treaty does apply, IRS Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual must be completed along with an Appendix A (students) or B (professors, teachers) in order for the exemption to take place.
| Country | Appendix** | Who is Exempt/Limitations | Treaty # |
|---|---|---|---|
| Bangladesh (BGD) | B (pdf) | Professors and teachers--Exempt for two years | #21(1) |
| A (pdf) | Students - Limited to $8,000 per tax year | #21(2) | |
| Belgium (BEL) | B (pdf) | Professors and teachers--Exempt for two years | #19(2) |
| A (pdf) | Students--Limited to $9000 per tax year | #19(1)(b) | |
| Bulgaria (BGR) | B (pdf) | Professors and teachers--Exempt for two years | #19(2) |
| A (pdf) | Students--Limited to $9000 per tax year | #19(1)(b) | |
| China, People’s Republic of (CHN) | B (pdf) | Teachers--Exempt for a maximum of three years | #19 |
| A (pdf) | Students--Limit of $5000 per tax year | #20(c) | |
| Commonwealth of Independent States Armenia (ARM), Azerbaijan (AZE), Belarus (BLR), Georgia (GEO), Kyrgyzstan (KGZ), Moldova (MDA), Tajikistan (TJK), Turkmenistan(TKM), & Uzbekistan (UZB) | B (pdf) | Teachers and researchers--Limit two years | #VI(1) |
| Cyprus (CYP) | A (pdf) | Students--$2000 per tax year up to five years and for any additional time necessary to complete a postgraduate or professional degree | #21(1) |
| Czech Republic (CZE) | B (pdf) | Teachers--limit two years | #21(5) |
| A (pdf) | Students--limit of $5000 per year for five years | #21(1) | |
| Egypt (EGY) | B (pdf) | Teachers--Limit two years | #22 |
| A (pdf) | Students--$3,000 limit for five years | #23(1) | |
| Estonia (EST) | A (pdf) | Students--$5,000 limit for five years | #20(1) |
| France (FRA) | B (pdf) | Teachers--Limit two years | #20 |
| A (pdf) | Students--Limit $5000, maximum of five years | #21(1) | |
| *Germany (DEU) | B (pdf) | Professors or teachers--Limit two years | #20(1) |
| A (pdf) | Students--Limit $9000 for four years (treaty exemption lost if stay exceeds time limit) | #20(4) | |
| Greece (GRC) | B (pdf) | Professors or teachers--Exempt for three years | #XII |
| Hungary (HUN) | B (pdf) | Teachers--Limit two years | #17 |
| Iceland (ISL) | A (pdf) | Students--Limit $9,000 for five years | #19(1) |
| *India (IND) | B (pdf) | Professors, teachers, research scholars--Limit two years (treaty exemption lost if stay exceeds time limit) | #22 |
| Indonesia (IDN) | B (pdf) | Teachers and researchers--Limit two years | #20 |
| A (pdf) | Students--Limit $2000 for five years maximum | #19(1) | |
| Israel (ISR) | B (pdf) | Teachers--Limit two years | #23 |
| A (pdf) | Students--Limit $3000 for five years | #24(1) | |
| Italy (ITA) | B (pdf) | Professors and teachers--Limit two years | #20 |
| Jamaica (JAM) | B (pdf) | Teachers and researchers--Limit two years | #22 |
| Japan (JPN) | B (pdf) | Teachers and researchers - Limit two years | #20 |
| Korea, Republic of (KOR) | B (pdf) | Teachers--Limit two years | #20 |
| A (pdf) | Students--Limit $2000 for five years maximum | #21(1) | |
| Latvia (LVA) | A (pdf) | Students--$5000 limit for five years | #20(1) |
| Lithuania (LTU) | A (pdf) | Students--$5000 limit for five years | #20(1) |
| *Luxembourg (LUX) | B (pdf) | Teachers--Limit two years (treaty exemption lost if stay exceeds time limit) | #21(2) |
| Malta (MLT) | A (pdf) | Students--Limited to $9,000 per tax year | #20 |
| Morocco (MAR) | A (pdf) | Students--Limit $2,000 for five years maximum | #18 |
| *Netherlands (NLD) | B (pdf) | Teachers and researchers--Limit two years (treaty exemption lost if stay exceeds time limit) | #21(1) |
| A (pdf) | Students--Limit $2,000 per year | #22(1) | |
| Norway (NOR) | B (pdf) | Teachers--Limit two years | #15 |
| A (pdf) | Students--Limit $2,000 for five years | #16(1) | |
| Pakistan (PAK) | B (pdf) | Professors and teachers--Limit two years | #XII |
| A (pdf) | Students, grant recipients--Limit $5,000 | #XIII(1) | |
| Philippines (PHL) | B (pdf) | Teachers--Limit two years | #21 |
| A (pdf) | Students, trainees, grant recipients--Limit $3,000 for five years | #22(1) | |
| Poland (POL) | B (pdf) | Teachers--Limit two years | #17 |
| A (pdf) | Students, trainees, grant recipients--Limit $2,000 for five years | #18(1) | |
| Portugal (PRT) | B (pdf) | Teachers--Limit two years | #22 |
| A (pdf) | Student--Limit $5,000 for five years | #23(1) | |
| Romania (ROM) | B (pdf) | Teachers--Limit two years | #19 |
| A (pdf) | Students, trainees, grant recipients--Limit $2,000 for five years | #20(1) | |
| Slovak Republic (SVK) | B (pdf) | Teachers--Limit two years | #21(5) |
| A (pdf) | Students--Limit $5000 for 5 years | #21(1) | |
| Slovenia (SVN) | B (pdf) | Teachers or Researchers--Limit two years | #20(3) |
| A (pdf) | Students--Limit $5000 for 5 years | #20(1) | |
| Spain (ESP) | A (pdf) | Students, trainees, grant recipients--Limit $5,000 for up to five years | #22(1) |
| *Thailand (THA) | B (pdf) | Teachers or Researchers--Limit two years (treaty exemption lost if stay exceeds time limit) | #23 |
| A (pdf) | Student--Limit $3000 for 5 years | #22(1) | |
| Trinidad & Tobago (TTO) | B (pdf) | Teachers--Limit two years | #18 |
| A (pdf) | Students, trainees, grant recipients--Limit $2,000 ($5,000 trainees) for five years maximum | #19(1) | |
| Tunisia (TUN) | A (pdf) | Students and grant recipients--Limit $4,000 up to five years | #20 |
| *United Kingdom (England, Scotland, Wales & Northern Ireland) (GBR) | B (pdf) | Professors or teachers--Limit two years (treaty exemption lost if stay exceeds time limit) | #20A |
| Venezuela (VEN) | B (pdf) | Teacher--limit two years | #21(3) |
| A (pdf) | Students--$5000 limit for five years | #21(1) |
*Individuals in these countries will retroactively lose treaty exemption if their stay in the United States exceeds the time limit allowed by the treaty. Treaty benefits will not be allowed if their stay exceeds the time limit.
** Appendix A (for alien students claiming exempt) Earn Code NR5
Appendix B (for alien teachers or researchers claiming exempt.) Earn Code NR4
Samples of completed W-4 (pdf), K-4 (pdf) and IRS 8233 (pdf) for reference.
Also, you can now log onto the Internal Revenue Service Department of the Treasury
IRS Publications for Reference:
- Publication 901 U.S. Tax Treaties (pdf)
- Publication 519 U.S. Tax Guide for Aliens (pdf)
- Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Corporations (pdf)
NOTE: This is just a summary. For more detailed information please reference the above IRS publications Candy Walsh with the Division of Human Resources at (785) 532-6277.
