Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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United Kingdom - Personal Services Income
Income that residents of the United Kingdom receive for personal services as
independent contractors or self-employed individuals are a subject of the
treaty. Business profits are exempt from U.S. income tax unless the individual
has a permanent establishment in the United States. If they have a permanent
establishment in the United States, they are taxed on the profits attributable
to the permanent establishment. Income that residents of the United Kingdom
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.
resident.
- Their income is not borne by a permanent establishment that the employer has
in the United States.
The exemption does not apply to directors� fees and similar payments received by
a resident of the United Kingdom for services performed in the United States as
a member of the board of directors of a company resident in the United States.
Public entertainers (such as theater, motion picture, radio, or television
artists, musicians, or athletes) from the United Kingdom who earn more than
$20,000 in gross receipts, including reimbursed expenses, from their
entertainment activities in the United States during the tax year are subject to
U.S. tax.
Income received by a resident of the United Kingdom for services performed as an
employee and member of the regular complement of a ship or aircraft operated in
international traffic is exempt from U.S. income tax.
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