Tax Treaties and Deadlines

DEADLINE TO CLAIM *NEW* TAX TREATY EXEMPTION FOR CURRENT CALENDAR YEAR 2020: If GLACIER determines you are possibly eligible to claim a tax treaty exemption, your complete GLACIER submission must be received by our office no later than Sunday, November 29th, 2020. This deadline is necessary due to IRS annual processing requirements and the short operating month of December allowed to meet these requirements. Submissions received after the November 29th deadline will only be under consideration for tax exemption beginning in 2021.

 

GENERAL TAX TREATY INFORMATION-

To claim exemption from withholding on Employee Compensation, Honoraria, or Independent Contractor Payments:

  1. Complete the online GLACIER forms, making sure to select the correct income type (Please contact our office if you have any questions)
  2. If determined possibly eligible, GLACIER will complete Part I, II, and III of IRS Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien. You will need to sign and date the forms
  3. Submit IRS Form 8233 and attachments, the completed GLACIER Tax Summary Report, all required immigration document copies**, and a copy of your Social Security card or ITIN letter to Nonresident Alien Tax ("NRA Tax") before your department issues your payment.
  4. NRA Tax will analyze each person's visa history, payment type, and specific treaty language to determine eligibility for the exemption
  5. If you are considered eligible for the treaty exemption, NRA Tax will complete Part IV of IRS Form 8233 and apply for the exemption through the IRS.
  6. A foreign national with a U.S. tax identification number* might be eligible to claim treaty benefits (complete or partial exemption from tax withholding) on certain types of income

Time Limit

  1. IRS Form 8233 is only valid for one calendar year
  2. In order to renew an exemption, you must forward to NRA Tax a newly completed and signed IRS Form 8233 for each calendar year, required attachments, a completed GLACIER form, and copies of current immigration documents (as listed on the GLACIER Tax Summary Report) in December of the current year to continue any tax exemption allowed for the following calendar year.

Required Forms

  1. IRS Form 8233 and attachments
  2. GLACIER

To claim exemption from withholding on Scholarship, Fellowship, Grant, or Royalty Payments:

  1. You must be a U.S. nonresident alien
  2. Complete the online GLACIER forms, making sure to select the correct income type (Please contact our office if you have any questions)
  3. Complete IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding (The form should be pre-filled by GLACIER, and will only need to be signed and dated)
  4. Submit Form W-8BEN, completed GLACIER forms, required immigration document copies**, and a copy of your Social Security Card or ITIN letter to NRA Tax before payment is made
  5. NRA Tax will review your visa history, payment type, and specific treaty language to determine eligibility for the exemption

Time Limit

  1. IRS Form W-8BEN is valid for 3 calendar years, as long as your immigration status remains unchanged

Required Forms

  1. IRS Form W-8BEN
  2. GLACIER

 

* A U.S. Social Security Number or Individual Tax Identification Number (ITIN) is required to claim tax treaty benefits.

** Please not that the I-94 document is required and can only be accessed after arriving in the U.S. 

Disclaimer

The information contained within this website is provided for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.  All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance and fitness for a particular purpose.