Division of Business Services

Tax Treaties

[From IRS Publication 901 (Rev. April 2011) (Cat. No. 46849F), Table 2, Pages 39-53]

We have listed only IRS code 15 (Scholarship/Fellowship Grant), code 16 (Independent Personal Services), and code 20 Public Entertainment. For information on other codes and for detailed explanations of all treaties please refer to IRS Publication 901 (http://www.irs.gov/pub/irs-pdf/p901.pdf).

The legend below will allow you quick access to each country’s treaty information. Please select the first letter of the country you are looking for and the link will take you directly to the appropriate section.

Note: If a country is not listed it means that there is no treaty in effect at this time for the country. Please remember that this chart only includes IRS income codes 15, 16, and 20.

Legend for table below:

  • p.a. = per annum

Tax Treaties Footnotes

1 Refers to income numbers under which the income is reported on Forms 1042-S. Personal services must be preformed by a nonresident alien individual who is a resident of the specified treaty country.
2 Applies only if training or experience is received from a person other than alien’s employer.
3 Employment with a team which participates in a league with regularly scheduled games in both countries is covered under the provisions for dependent personal services.
4 Does not apply to compensation for research work primarily for private benefit.
5 Grant must be from a nonprofit organization. In many cases, the exemption also applies to amounts from either the U.S. or foreign government. For Indonesia and the Netherlands, the exemption also applies if the amount is awarded under a technical assistance program entered into by the United States or the foreign government, or its political subdivision or local authorities.
6 Reimbursed expenses are not taken into account in figuring any maximum compensation to which the exemption applies. For Japan and Trinidad and Tobago, only reimbursed travel expenses are disregarded in figuring the maximum compensation.
7 Does not apply to fees to a directors of a U.S. corporation.
8 Does not apply to compensation for research work for other than the U.S. educational institution involved.
9 Exemption does not apply if gross receipts exceed this amount. Income is fully exempt if visit to the United States is substantially supported by public funds of the treaty country or its political subdivisions or local authorities.
10 Applies only to full-time students or trainees.
11 The time limit pertains only to an apprentice or business trainee.
12 Does not apply to compensation paid to public entertainers (actors, artists, musicians, athletes, etc.)
13 Does not apply to compensation paid to public entertainers that is more than $100 a day.
14 Exemption applies only if the compensation is subject to tax in the country of residence.
15 The exemption does not apply if the employee’s compensation is borne by a permanent establishment (or in some cases a fixed base) that the employer has in the United States.
16 The exemption also applies if the employer is a permanent establishment in the treaty country but is not a resident of the treaty country.
17 This exemption does not apply in certain cases if the employee is a substantial owner of that employer and the employer is engaged in certain defined activities.
18 The exemption is also extended to journalists and correspondents who are temporarily in the US for periods not longer than 2 years and who receive compensation from abroad.
19 Also exempt are amounts of up to $10,000 received from U.S. sources to provide ordinary living expenses. For students the amount will be less than $10,000, determined on a case by case basis.
20 A student or trainee may choose to be treated as a U.S. resident for tax purposes. If the choice is made, it may not be changed without the consent of the U.S. competent authority.
21 Amounts received in excess of a reasonable fixed amount payable to all directors for attending meetings in the United States are taxable.
22 Exemption does not apply to the extent income is attributable to the recipient’s fixed U.S. base. For residents of Iceland, Korea, and Norway, the fixed base must be maintained in the U.S. for more than 183 days during the tax year for the exemption not to apply; for residents of Belgium, Iceland, Korea, and Norway, the fixed base must be maintained for more than 182 days; for residents of Morocco, the fixed base must be maintained for more than 89 days.
23 Fees paid to a resident of the treaty country for services as a director of a U.S. tax, unless the services are performed in the country of residence.
24 Fees paid to a resident of the treaty country for services performed in the United States as a director of a U.S. corporation are subject to U.S. tax.
25 Exemption does not apply if gross receipts (including reimbursements) exceed this amount.
26 Exemption does not apply if net income exceeds this amount.
27 Exemption does not apply to payments borne by a permanent establishment in the United States or paid by a U.S. citizen or resident or the federal, state, or local government.
28 Exemption does not apply if compensation exceeds this amount.
29 The exemption applies only to income from activities performed under special cultural exchange programs agreed to by the U.S. and Chinese governments.
30 Exemption does not apply is gross receipts (or compensation for Portugal), including reimbursements, exceed this amount. Income is fully exempt if visit to the United States is substantially supported by public funds of the treaty country or its political subdivisions or local authorities.
31 The 5-year limit pertains only to training or research.
32 Compensation from employment directly connected with a place of business that is not a present in the United States for a period not exceeding 12 consecutive months. Compensation for technical services directly connected with the application of a right or property giving rise to a royalty is exempt if the services are provided as part of a contract granting the use of the right or property.
33 Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 21.
34 Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 22.
35 Exemption does not apply if the individual either (a) claimed the benefit of Article 21(5) during a previous visit, or (b) during the immediately preceding period, claimed the benefit of Article 21(1), (2), or (3).
36 Exemption applies only to compensation for personal services performed in connection with, or incidental to, the individual’s study, research, or training.
37 Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 24(1).
38 Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 22(1).
39 Exemption does not apply if the individual previously claimed the benefit of this Article.
40 The combined period of benefits under Article 20 and 21(1) cannot exceed 5 years.
41 Exemption does not apply if the individual either (a) claimed the benefit of this Article, or (b) during the immediately preceding period, claimed the benefit of Article 23. The benefits under Articles 22 and 23 cannot be claimed at the same time.
42 Exemption does not apply if gross receipts (including reimbursements) exceed this amount during any 12-month period.
43 This provision does not apply if the competent authority of the treaty country certifies that the visit is substantially supported by that treaty country.
44 Applies to grants, allowances, and other similar payments received for studying or doing research.
45 A $10,000 limit applies if the expense is borne by a permanent establishment or a fixed base in the United States.
46 This provision does not apply if these activities are substantially supported by a nonprofit organization or by public funds of the treaty country of its political subdivisions or local authorities.
47 Applies to any additional period that a full-time student needs to complete the educational requirements as a candidate for a postgraduate or professional degree from a recognized educational institution.
48 The combined benefit for teaching cannot exceed 5 years.
49 Exemption does not apply if the recipient maintains a permanent establishment in the U.S. with which the income is effectively connected.
50 The exemption does not apply to income received for performing services in the United States as an entertainer or a sportsman. However, this income is exempt for U.S. income tax if the visit is (a) substantially supported by public funds of Ukraine, its political subdivisions, or local authorities, or (b) made under a specific arrangement agreed to by the governments of the treaty countries.
51 Exemption does not apply if gross receipts, including reimbursements, exceed this amount during the year. Income is fully exempt if visit is wholly or mainly supported by public funds of one or both of the treaty countries or their political subdivisions or local authorities.
52 If the compensation exceeds $400 per day, the entertainer may be taxed on the full amount. If the individual receives a fixed amount for more than one performance, the amount is prorated over the number of days the individual performs the services (including rehearsals).
53 Exemption does not apply if gross receipts exceed this amount.
54 Treated as business profits under Article 7 (VII) of the treaty.
55 Applies also to a participant in a program sponsored by the U.S. Government or an international organization.
56 Exemption does not apply if during the immediately preceding period, the individual claimed the benefit of Article 20(2), (3), or (4).
57 Exemption applies to a business apprentice (trainee) only for a period not exceeding 1 year (2 years for Belgium and Bulgaria) from the date of arrival in the United States.