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 Barbados 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 89 days during the tax year,
- Earn net income for independent services provided to U.S. residents that is
not more than $5,000 (there is no dollar limit if the contractors are not U.S.
- Do not have a regular base available in the United States for performing the
If they have a regular base available in the United States but otherwise meet
the conditions for exemption, they are taxed only on the income attributable to
the regular base.
Income that residents of Barbados receive for personal services performed in the
United States as employees (dependent personal services) is exempt from U.S. tax
if the residents meet four requirements.
- They are in the United States for no more than 183 days during the calendar
- The income earned in the calendar year in the United States is not more than
- Their income is paid by or for an employer who is not a U.S. resident.
- The income is not borne by a permanent establishment or regular base of the
employer in the United States.
Income of a Barbadian resident from employment as a member of the regular
complement of a ship or aircraft operated in international traffic is exempt
from U.S. tax.
These exemptions do not apply to Barbadian resident public entertainers (such as
theater, motion picture, radio, or television artists, musicians, or athletes)
who receive gross receipts of more than $250 per day or $4,000 in the tax year,
not including reimbursed expenses, from their entertainment activities in the
United States. However, the exemptions do apply regardless of these limits on
gross receipts if the entertainer�s visit to the United States is substantially
supported by Barbadian public funds or if the entertainer�s services are
provided to a nonprofit organization.