TAX TREATIES FOR

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					                                TAX TREATIES FOR UCSD INTERNATIONAL GRADUATE STUDENTS
                                        (Use for determining Exemption from Federal Tax Withholding)

General Instructions: This information has been obtained from the Internal Revenue Service (IRS) Publication 901, U.S. Tax Treaties:
http://www.irs.ustreas.gov/pub/irs-pdf/p901.pdf, revised 4/08 and UCOP. In Publication 901, refer to the section for “Students and Apprentices”,
pages 18-26 and the charts on pages 36-45. Any questions should be directed to Paul Rodriguez, UCSD Payroll.

Student Instructions: To claim benefit of a Tax Treaty (which excludes income from Federal taxation but not CA State), you must submit the
appropriate form(s) to the Payroll Office, Mail Code 0952. The following web site has links to all required forms and Tax Treaty Statements for
salary and for fellowship stipends: http://blink.ucsd.edu/Blink/External/Topics/Policy/1,1162,3705,00.html
After the Payroll Office receives the required form(s), no federal tax will be withheld from your salary or fellowship stipend payments for the
taxable year (payments received from January 1 through December 31). The forms to claim salary tax treaties must be completed each tax
year. By March 15, you will receive a 1042-S Form reflecting the amount excluded from federal taxation for the previous tax year. You must
attach the 1042-S Form to your Federal (1040NR-EZ or 1040NR) Federal tax form.

Department Instructions: The country abbreviation is listed in parentheses for input to PPS (EALN screen, country code). After Payroll
verifies eligibility for a tax treaty benefit, Payroll will change the citizenship code to “E” and input the tax treaty data into the EALN screen. The
student will usually receive a refund of any federal taxes that have been withheld previous to the proper forms being received by the Payroll
Office.

BANGLADESH (PEOPLE’S REPUBLIC OF) (BG):
      1. (19) Personal services (salary):
      Article 21 (2a) (III) grants a tax exemption for compensation of up to $8,000 per calendar year. Compensation above that amount is
      fully taxable in the U.S.

BARBADOS (BB):
      (20) Article 20 provides that a student from Barbados may elect to be treated for tax purposes as a resident of the State which he is
      visiting for the purposes of his education or training. Under this rule, a Barbadian student in the United States may elect to be taxed
      on his world-wide income and to claim the same deductions and personal exemption which are available to U.S. residents. The
      student would complete a Federal 1040EZ, 1040A, or 1040 Form rather than a 1040NR Form. To claim residence, a student must
      submit to Payroll (via the department) a letter stating the intent to claim residence for U.S. tax purposes. IMPORTANT: A student
      would presumably not make this election with large amounts of foreign source income. Once the election is made, it may not be
      revoked during the time when this article is applicable, except with the consent of the competent authority of the Host State.

BELGIUM (BE) NEW TREATY EFFECTIVE FOR AMOUNTS PAID OR CREDITED ON OR AFTER 2/1/08:
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 21(1) grants a five year exemption for the first $9,000 (amount increased from $2,000/yr) of personal service income in each
       of the first five taxable years of presence in the U.S.

CANADA (CA):
       (17) Personal services (salary): Note - There is no country statement requirement
       Article XV grants a tax exemption for compensation of not more than $10,000 per calendar year. If that amount is exceeded, or it is
       expected to be exceeded, the exemption cannot be granted.

CHINA (PEOPLE’S REPUBLIC OF) (CH):
        1. (15) Fellowship exemption (stipend)
        Article 20(b) grants unlimited exemption to scholarship or fellowship payments.
        2. (19) Personal services (salary):
        Article 20(c) grants a tax exemption for compensation of up to $5,000 per calendar year. Compensation above that amount is fully
        taxable in the U.S.

COMMON WEALTH OF INDEPENDENT STATES - Includes Armenia (AM), Azerbaijan (AJ), Belarus (BO), Georgia (GG), Kyrgyzstan (KG),
      Moldova (MD), Tajikistan (TI), Turkmenistan (TX), and Uzbekistan (UZ)
      (15) Fellowship exemption (stipend):
      Article VI(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments up to $10,000 per year.

CYPRUS (CY):
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a generally unlimited exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar
       amount.
       2. (19) Personal services (salary):
       Article 21(1) grants an exemption on the first $2,000 of personal service income in each of the taxable years of presence in the U.S.
       Compensation above that level is fully taxable in the U.S.

CZECH REPUBLIC (EZ):
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a five-year exemption from first date of U.S. arrival.
       2. (19) Personal services (salary):
       Article 21(1) grants a five-year exemption for the first $5,000 for the tax year.

EGYPT (EG):
        1. (15) Fellowship exemption (stipend)
        Article 23(1) grants generally a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar
        amount.
        2. (19) Personal services (salary):
        Article 23(1) grants a tax exemption on compensation of up to $3,000 per calendar year for generally five years from first date of
        arrival in the U.S. Compensation above that level is fully taxable in the U.S.
ESTONIA (EN):
       1. (15) Fellowship exemption (stipend)
       Article 20(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 20(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
       U.S.
       Compensation above that level is fully taxable in the U.S.

FRANCE (FR):
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 21(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
       U.S. Compensation above that level is fully taxable in the U.S.

GERMANY* (GM) NEW TREATY EFFECTIVE FOR AMOUNTS PAID OR CREDITED ON OR AFTER 2/1/08:
      1. (15) Fellowship exemption (stipend):
      Article 20(3) grants unlimited exemption to scholarship or fellowship payments. Note: This exemption is allowed even if the
      individual's visit exceeds 4 years.
      2. (19) Personal services (salary):
      Article 20(4) grants a tax exemption on compensation of up to $9,000 (amount increased from $5,000/yr) per calendar year for four
      years from first date of arrival in the U.S. *IMPORTANT: If the individual’s visit exceeds 4 years, the salary exemption is lost for
      the entire visit unless the competent authorities of Germany and the United States agree otherwise. (To claim benefit, the
      Payroll Office requires that you also include a statement (on a separate piece of paper) that you will be in the country less
      than 4 years.)

HUNGARY (HU):
      (18) Article 18 provides that a student from Hungary may elect to be treated for tax purposes as a resident of the State which he is
      visiting for the purposes of his education or training. Under this rule, a Hungarian student in the United States may elect to be taxed
      on his world-wide income and to claim the same deductions and personal exemption which are available to U.S. residents. The
      student would complete a Federal 1040EZ, 1040A, or 1040 Form rather than a 1040NR Form. To claim residence, a student must
      submit to Payroll (via the department) a letter stating the intent to claim residence for U.S. tax purposes. IMPORTANT: A student
      would presumably not make this election with large amounts of foreign source income. Once the election is made, it may not be
      revoked during the time when this article is applicable, except with the consent of the competent authority of the Host State.

ICELAND (IC):
       1. (15) Fellowship exemption (stipend)
       Article 22(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 22(1) grants a tax exemption on compensation of up to $2,000 per calendar year for up to five years from first date of arrival in
       the U.S. Compensation above that level is fully taxable in the U.S.

INDIA (IN):
          When completing the Federal 1040NR income tax form, graduate students from India may be eligible to claim (subtract from income)
          the standard deduction and to claim personal exemptions for their spouse and dependents under Article 21 of the 1990 Tax Treaty.
          Obtain IRS Publication 519 (Chapter 5, Figuring Your Tax, Exemptions “Students and business apprentices from India” and Itemized
          Deductions “Students and business apprentices from India, page 24-25) for further details.

INDONESIA (ID):
       1. (15) Fellowship exemption (stipend)
       Article 19(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 19(1) grants a tax exemption on compensation of up to $2,000 per calendar year for up to five years from first date of arrival in
       the U.S. Compensation above that level is fully taxable in the U.S.

ISRAEL (IS):
         1. (15) Fellowship exemption (stipend)
         Article 24(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
         2. (19) Personal services (salary):
         Article 24(1) grants a tax exemption on compensation of up to $3,000 per calendar year for up to five years from first date of arrival in
         the U.S. Compensation above that level is fully taxable in the U.S.

JAMAICA (JM):
       (21) Article 21 provides that a student from Jamaica may elect to be treated for tax purposes as a resident of the State which he is
       visiting for the purposes of his education or training. Under this rule, a Jamaican student in the United States may elect to be taxed on
       his world-wide income and to claim the same deductions and personal exemption which are available to U.S. residents. The student
       would complete a Federal 1040EZ, 1040A, or 1040 Form rather than a 1040NR Form. To claim residence, a student must submit to
       Payroll (via the department) a letter stating the intent to claim residence for U.S. tax purposes. IMPORTANT: A student would
       presumably not make this election with large amounts of foreign source income. Once the election is made, it may not be revoked
       during the time when this article is applicable, except with the consent of the competent authority of the Host State.
JAPAN (JA): ***IMPORTANT – CHANGE EFFECTIVE 7/1/2004 WITH NEW TAX TREATY***

NEW TREATY Effective 1/1/05: A student in the U.S. prior to 3/30/04 may continue to claim benefit of the treaty until such time the
individual would cease to be entitled to such benefits if the prior treaty remained in force. A student entering the U.S. after 3/30/04 may
claim benefit of the treaty until 12/31/05.

          FORMER TAX TREATY:
          1. (15) Fellowship exemption (stipend)
          Article 20(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
          2. (19) Personal services (salary):
          Article 20(1) grants a tax exemption on compensation of up to $2,000 per calendar year for five years from first date of arrival in the
          U.S. Compensation above that level is fully taxable in the U.S.

KAZAKSTAN (KZ):
       (15) Fellowship exemption (stipend)
       Article 19 grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.

KOREA (REPUBLIC OF) (KS):
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 21(1) grants a tax exemption on compensation of up to $2,000 per calendar year for five years from first date of arrival in the
       U.S. Compensation above that level is fully taxable in the U.S.

LATVIA (LG):
         1. (15) Fellowship exemption (stipend)
         Article 20(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
         2. (19) Personal services (salary):
         Article 20(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
         U.S.
         Compensation above that level is fully taxable in the U.S.

LITHUANIA (LH):
        1. (15) Fellowship exemption (stipend)
        Article 20(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
        2. (19) Personal services (salary):
        Article 20(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
        U.S.
        Compensation above that level is fully taxable in the U.S.

MOROCCO (MO):
      1. (15) Fellowship exemption (stipend)
      Article 18 grants a five-year exemption to scholarship or fellowship payments in any dollar amount.
      2. (19) Personal services (salary):
      Article 18 grants a tax exemption on compensation of up to $2,000 per calendar year for up to five years from first date of arrival in the
      U.S. Compensation above that level is fully taxable in the U.S.

NETHERLANDS (NL):
       1. (15) Fellowship exemption (stipend)
       Article 22(2) grants an exemption on scholarship or fellowship payments in any dollar amount if the individual is temporarily in the U.S.
       to study for a period not exceeding three years.
       2. (19) Personal services (salary):
       Article 22(1) grants a tax exemption on compensation of up to $2,000 per calendar year. Compensation above that level is fully
       taxable in the U.S.

NORWAY (NO):
      1. (15) Fellowship exemption (stipend)
      Article 16(1) grants a five-year exemption to scholarship or fellowship payments in any dollar amount.
      2. (19) Personal services (salary):
      Article 16(1) grants a tax exemption on compensation of up to $2,000 per calendar year for up to five years from first date of arrival in
      the U.S. Compensation above that level is fully taxable in the U.S.

PAKISTAN (PK):
       (19) Personal services (salary):
       Article XIII(1) grants a tax exemption on compensation of up to $5,000 per calendar year. Compensation above that level is fully
       taxable in the U.S.

PHILIPPINES (RP):
        1. (15) Fellowship exemption (stipend)
        Article 22(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
        2. (19) Personal services (salary):
        Article 22(1) grants a tax exemption on compensation of up to $3,000 per calendar year for five years from first date of arrival in the
        U.S. Compensation above that level is fully taxable in the U.S.

POLAND (PL):
       1. (15) Fellowship exemption (stipend)
       Article 18(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 18(1) grants a tax exemption on compensation of up to $2,000 per calendar year for five years from first date of arrival in the
       U.S. Compensation above that level is fully taxable in the U.S.
PORTUGAL (PO):
      1. (15) Fellowship exemption (stipend)
      Article 23(1) grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
      2. (19) Personal services (salary):
      Article 23(1) grants a tax exemption on compensation of up to $5,000 per calendar year for up to five years from first date of arrival in
      the U.S. Compensation above that level is fully taxable in the U.S.

ROMANIA (RO):
       1. (15) Fellowship exemption (stipend)
       Article 20(1) grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 20(1) grants a tax exemption on compensation of up to $2,000 per calendar year for five years from first date of arrival in the
       U.S. Compensation above that level is fully taxable in the U.S.

RUSSIA (RS):
        (15) Fellowship exemption (stipend)
        Article 18 grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.

SLOVAK REPUBLIC (LO):
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 21(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
       U.S. Compensation above that level is fully taxable in the U.S.

SPAIN (SP):
        1. (15) Fellowship exemption (stipend)
        Article 22(1) grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
        2. (19) Personal services (salary):
        Article 22(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
        U.S. Compensation above that level is fully taxable in the U.S.

THAILAND (TH):
       1. (15) Fellowship exemption (stipend)
       Article 22(1) grants a five-year exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 22(1) grants a tax exemption on compensation of up to $3,000 per calendar year for five years from first date of arrival in the
       U.S.
       Compensation above that level is fully taxable in the U.S.

TRINIDAD AND TOBAGO (TD):
        1. (15) Fellowship exemption (stipend)
        Article 19(1) grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
        2. (19) Personal services (salary):
        Article 19(1) grants a tax exemption on compensation of up to $2,000 per calendar year for five years from first date of arrival in the
        U.S. Compensation above that level is fully taxable in the U.S.

TUNISIA (TS):
         1. (15) Fellowship exemption (stipend)
         Article 20 grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.
         2. 19) Personal services (salary):
         Article 20 grants a tax exemption on compensation of up to $4,000 per calendar year for five years from first date of arrival in the U.S.
         Compensation above that level is fully taxable in the U.S.

UKRAINE (UP):
       1. (15) Fellowship exemption (stipend)
       Article 20 grants a five-year tax exemption from first date of U.S. arrival on scholarship or fellowship payments in any dollar amount.

VENEZUELA (VE):
       1. (15) Fellowship exemption (stipend)
       Article 21(1) grants a five-year tax exemption from first date of U.S. arrival or fellowship payments in any dollar amount.
       2. (19) Personal services (salary):
       Article 21(1) grants a tax exemption on compensation of up to $5,000 per calendar year for five years from first date of arrival in the
       U.S.
       Compensation above that level is fully taxable in the U.S.




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