For information call now:
Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
Personal Services Income
Income that residents of Bangladesh receive for performing personal services as
independent contractors or self-employed individuals (independent personal
services) in the United States during the tax year is exempt from U.S. income
tax if the residents:
- Are in the United States for no more than 183 days in any 12-month period
beginning or ending in the tax year, or
- Do not have a fixed base regularly available to them in the United States for
the purpose of performing the services.
If they have a fixed base available in the United States, they are taxed on the
income attributable to the fixed base.
Income that residents of Bangladesh receive for services performed in the United
States as employees (dependent personal services) is exempt from U.S. income tax
if the residents meet the following requirements.
- They are in the United States for no more than 183 days in any 12-month period
beginning or ending in the tax year.
- Their income is paid by, or on behalf of, an employer who is not a U.S.
- Their income is not borne by a permanent establishment or a fixed base that
the employer has in the United States.
These exemptions do not apply to pubic entertainers (such as theater, motion
picture, radio, or television entertainers, musicians, and athletes) from
Bangladesh who earn more than $10,000 in gross receipts, including reimbursed
expenses, from their entertainment activities in the United States during the
tax year. Regardless of these limits, income of Bangladesh entertainers is
exempt from U.S. income tax if their visit to the United States is wholly or
mainly supported by public funds of Bangladesh, its political subdivisions, or
Income received from employment as a member of the regular complement of a ship
or an aircraft operated by a Bangladesh enterprise in international traffic is
exempt from U.S. tax. If the ship or aircraft is operated by a U.S. enterprise,
the income is subject to U.S. tax.
If the resident of Bangladesh is a shareholder in a U.S. corporation, these
exemptions do not apply to directors� fees received as a member of the board of
directors of the U.S. corporation. The amount received by the shareholder that
is more than the amount paid to a director that is not a shareholder is subject
to U.S. tax at the rate of 15%.