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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Tax Treaty Benefits
A nonresident alien (and certain resident aliens) from a country with which the
United States has an income tax treaty may qualify for certain benefits. Most
treaties require that the nonresident alien be a resident of the treaty country
to qualify. However, some treaties require that the nonresident alien be a
national or a citizen of the treaty country.
You can generally arrange to have withholding tax reduced or eliminated on wages
and other income that are eligible for tax treaty benefits.
A nonresident alien�s treaty income is the gross income on which the tax is
limited by a tax treaty. Treaty income includes, for example, dividends from
sources in the United States that are subject to tax at a tax treaty rate not to
exceed 15%. Nontreaty income is the gross income of a nonresident alien on which
the tax is not limited by a tax treaty.
Figure the tax on treaty income on each separate item of income at the reduced
rate that applies to that item under the treaty. To determine tax on nontreaty
income, figure the tax at either the flat 30% rate or the graduated rate,
depending upon whether or not the income is effectively connected with your
trade or business in the United States. Your tax liability is the sum of the tax
on treaty income plus the tax on nontreaty income, but cannot be more than the
tax liability figured as if the tax treaty had not come into effect.
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