The table below indicates which countries have tax treaties with the United States in which some, or all, teaching/researching wages are tax exempt, provided certain conditions are met.
If a teacher’s/researcher's country of residence is included in the table below and the criteria in Column B and Column C are met, wages qualify for a tax exemption, and the following tax form needs to be completed upon hiring:
Form 8233: Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.
If an individual’s country of residence does not appear in the table below, Form 8233 does not need to be completed.
Description of Table Columns
Column A: Individual’s country of permanent citizenship. This is used in completing Form 8233 line 12c.
Column B: Maximum length of exemption. After the maximum number of years in the United States has been reached, the individual is subject to federal tax withholding.
EXAMPLE: An individual from Egypt has $22,000 of wages but has been in the United States for four years. The $22,000 is subject to taxation because the individual has been in the United States over the two-year limit.
Column C: Maximum earnings for exemption. There is no limit on earnings for teachers/researchers. The amount you enter on Line 12b on Form 8233 is the same as what you entered on Line 11b.
The one exception to this condition is for Canada, and the maximum earnings are $10,000. Wages below the $10,000 threshold are exempt. However, if wages exceed $10,000, the entire amount is taxable, not just the amount that exceeds $10,000.
CANADA EXAMPLE: An individual from Canada earns $12,000. Because it exceeds the $10,000 threshold amount, the entire $12,000 is taxable.
Column D: The tax treaty article citation. This is used in completing Form 8233 line 12a.
| Column A Country of Residence |
Column B Maximum Presence in USA |
Column C Maximum Compensation |
Column D Treaty Article Citation |
|---|---|---|---|
|
Bangladesh |
2 years |
No Limit |
21(1) |
|
Belgium |
2 years |
No Limit |
19(2) |
|
Bulgaria |
2 years |
No Limit |
19(2) |
|
Canada |
NO LIMIT |
$10,000 |
XV |
|
China—People’s Republic |
3 years |
No Limit |
19 |
|
Commonwealth of IS* |
2 years |
No Limit |
VI(1) |
|
2 years |
No Limit |
21(5) |
|
|
2 years |
No Limit |
22 |
|
|
2 years |
No Limit |
20 |
|
|
2 years |
No Limit |
20(1) |
|
|
Greece |
3 years |
No Limit |
XII |
|
2 years |
No Limit |
22 |
|
|
2 years |
No Limit |
20 |
|
|
2 years |
No Limit |
23 |
|
|
Italy |
2 years |
No Limit |
20 |
|
2 years |
No Limit |
22 |
|
|
Japan |
2 years |
No Limit |
20 |
|
Korea, South |
2 years |
No Limit |
20 |
|
2 years |
No Limit |
21(2) |
|
|
2 years |
No Limit |
21(1) |
|
|
Norway |
2 years |
No Limit |
15 |
|
Pakistan |
2 years |
No Limit |
XII |
|
2 years |
No Limit |
21 |
|
|
2 years |
No Limit |
17 |
|
|
2 years |
No Limit |
22 |
|
|
Romania |
2 years |
No Limit |
19 |
|
2 years |
No Limit |
21(5) |
|
|
2 years |
No Limit |
20(3) |
|
|
2 years |
No Limit |
23 |
|
|
2 years |
No Limit |
18 |
|
|
2 years |
No Limit |
20A |
|
|
Venezuela |
2 years |
No Limit |
21(3) |
* Note: This represents the USSR income tax treaty, which includes Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.
† Listed below are countries in which there are stipulations to the exemption.
Czech Republic: This benefit can only be claimed once, and it does not apply if the resident claimed the benefits as a student or apprentice during the immediately preceding period.
Egypt: Exemption does not apply if the resident claimed the benefits of a student or apprentice during the immediately preceding period.
France: This benefit can only be claimed once. In addition, this benefit and the benefits received as a student/apprentice (if applicable) can be claimed for no more than five years.
Germany: This benefit does not apply if during the preceding period, the benefit described in paragraph (2), (3), or (4) of Article 20 of the treaty, pertaining to students, was claimed.
India: If an individual's visit to the United States exceeds two years, the exemption is lost for the entire visit.
Indonesia: An individual is entitled to this exemption only once.
Israel: The exemption does not apply if, during the immediately preceding period, the benefits described in Article 24(1) of the treaty, pertaining to students, was claimed.
Jamaica: Exemption does not apply if the individual previously claimed the benefits of this article.
Luxembourg: If the individual’s visit to the United States is longer than two years, the exemption is lost for the entire visit unless the competent authorities of Luxembourg and the United States agree otherwise.
Netherlands: If the individual’s visit to the United States is longer than two years, the exemption is lost for the entire visit unless the competent authorities of the Netherlands and the United States agree otherwise. In addition, the exemption does not apply if the resident claimed the benefits as a student or apprentice during the immediately preceding period.
Philippines: The exemption does not apply if the resident claimed the benefits as a student or apprentice during the immediately preceding period.
Poland: Exemption does not apply if the resident claimed the benefits of a student or apprentice during the immediately preceding period.
Portugal: An individual is entitled to this benefit only once. However, benefits described under students and apprentices cannot be claimed either simultaneously or consecutively.
Slovak Republic: The exemption does not apply if the resident claimed the benefits as a student or apprentice during the immediately preceding period. The resident is entitled to this benefit only once.
Slovenia: This benefit can be claimed for no more than five years.
Thailand: The exemption does not apply if during the immediately preceding period, the benefits described in Article 22(1) of the treaty, pertaining to students, was claimed.
Trinidad and Tobago: The exemption does not apply to this income if an agreement exists between the governments of Trinidad and Tobago and the United States for providing the services of these individuals.
United Kingdom: If the individual's two-year period is exceeded, the exemption is lost for the entire visit, including the two-year period.
Note: This exemption does not apply to income from research carried on mainly for the private benefit of any person. The research must be in the interest of the public. This applies for all countries.