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Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
Lithuania - Personal Services Income
Income that residents of Lithuania receive for performing personal services as
independent contractors or self-employed individuals (independent personal
services) in the United States 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, and
- Do not have a fixed base regularly available to them in the United States for
performing the services.
If they have a fixed base available, they are taxed only on the income
attributable to the fixed base.
Income that residents of Lithuania receive for services performed in the United
States as employees (dependent personal services) is exempt from U.S. income tax
if the following requirements are met.
- The resident is in the United States for no more than 183 days in any 12-month
period beginning or ending in the tax year.
- The income is paid by, or on behalf of, an employer who is not a U.S.
- The income is not borne by a permanent establishment or a fixed base that the
employer has in the United States.
The exemption does not apply to pay received for employment as a member of the
regular complement of a ship or an aircraft operated in international traffic by
a U.S. enterprise.
The exemptions do not apply to directors� fees and similar payments received by
a resident of Lithuania as a member of the board of directors or similar body of
a company that is a U.S. resident.
The exemptions do not apply to income residents of Lithuania receive as public
entertainers (such as theater, motion picture, radio, or television artists, or
musicians) or sportsmen if their gross receipts, including reimbursed expenses,
are more than $20,000 for their personal activities in the United States during
the tax year. Regardless of these limits, income of Lithuanian entertainers or
athletes is exempt from U.S. income tax if their visit to the United States is
wholly or mainly supported by public funds of Lithuania, its political
subdivisions, or local authorities.