The United States has tax treaties with several foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or exempt specific income amounts of U.S.-sourced income and/or scholarship/fellowship payments from taxation. Please see the list below to see if your country has a tax treaty.
- If you are from a tax treaty country and claim tax treaty benefits for part of your earned income, you will receive a Form 1042-S in addition to your Form W-2. Both forms are necessary in order to file your taxes.
- If you received scholarship funds during the previous year, you will receive a Form 1042-S only.
If you will be using Sprintax to file your nonresident alien tax return, you will be guided through the questions of whether or not you are eligible for a tax treaty.
- Treaty Benefits for Visiting Scholars
-
Country
Maximum Presence
Amount
Article #
Special Restrictions*
(see below)Armenia
2 yrs.
No limit
VI(1)
b, d
Azerbaijan
2 yrs.
No limit
VI(1)
b, d
Bangladesh
2 yrs.
No limit
21(1)
In effect after 01/01/07
Belarus
2 yrs.
No limit
VI(1)
b, d
Belgium (Old Treaty)
2yrs.
No limit
20
b, e
Belgium (New Treaty)
2 yrs.
No limit
19(2)
b, e
Bulgaria
2 yrs.
No limit
19(2)
b, e
Canada
No limit
$10,000
XV
f
China (PRC)
3 yrs.
No limit
19
b, e
Czech Republic
2 yrs.
No limit
21(5)
b, c, d
Egypt
2 yrs.
No limit
22
b, e
France
2 yrs.
No limit
20
b, c
Georgia
2 yrs.
No limit
VI(1)
b, d
Germany
2 yrs.
No limit
20(1)
b, e
Greece
3 yrs.
No limit
XII
Hungary
2 yrs.
No limit
17
b
Iceland
2 yrs.
No limit
21
b, e
India
2 yrs.
No limit
22
a, b
Indonesia
2 yrs.
No limit
20
b, c
Israel
2 yrs.
No limit
23
b, e
Italy
2 yrs.
No limit
20
b
Jamaica
2 yrs.
No limit
22
b, c
Japan
2 yrs.
No limit
20
b, d
Korea
2 yrs.
No limit
20
b, d
Kyrgyzstan
2 yrs.
No limit
VI(1)
b, d
Luxembourg
2 yrs.
No limit
21
a, b
Moldova
2 yrs.
No limit
VI(1)
b, d
Netherlands
2 yrs.
No limit
21(1)
a, b, e
Norway
2 yrs.
No limit
15
b, d
Pakistan
2 yrs.
No limit
XII
Philippines
2 yrs.
No limit
21
b, e
Poland
2 yrs.
No limit
17
b, e
Portugal
2 yrs.
No limit
22
b, c
Romania
2 yrs.
No limit
19
b, e
Slovak Republic
2 yrs.
No limit
21(5)
b, c, e
Slovenia
2 yrs.
No limit
20 (3)
b, d
Tajikistan
2 yrs.
No limit
VI(1)
b, d
Thailand
2 yrs.
No limit
23
b, e
Trinidad/Tobago
2 yrs.
No limit
18
b, d
Turkmenistan
2 yrs.
No limit
VI(1)
b, d
Uzbekistan
2 yrs.
No limit
VI(1)
d, e
United Kingdom
2 yrs.
No limit
20
a, b
Venezuela
2 yrs.
No limit
21(3)
b
Special Restrictions
a - Tax is retroactive if the scholar remains past 2 years
b - If within the treaty time limit, the scholar may claim tax treaty benefits even if he/she qualifies as a resident for tax purposes. Not applicable for permanent resident or immigrant status
c - May only claim treaty exemption once in a lifetime
d - If claiming back-to-back student/scholar, 5 year total limit on treaty benefits
e - Student & teacher benefits may not be claimed back-to-back without re-establishing home country residency
f - Scholar is taxable on full amount if income is over $10,000
- Treaty Benefits for Students with Scholarships
-
Country
Maximum Presence
Amount
Article #
Special restrictions* (see below)
Armenia
5 years
$10,000
VI (1)
a
Azerbaijan
5 years
$10,000
VI (1)
a
Bangladesh
No limit
No limit
21 (2)
In effect after 01/01/07
Belarus
5 years
$10,000
VI (1)
a
Belgium
5 years
No limit
21 (1)
Peoples Republic of China
No limit
No limit
20 (b)
b
Cyprus
5 years
No limit
21 (1)
Czech Republic
5 years
No limit
21 (1)
Egypt
5 years
No limit
23 (1)
Estonia
5 years
No limit
20 (1)
France
5 years
No limit
21 (1)
Georgia
5 years
No limit
VI (1)
a
Germany
No limit
No limit
20 (3)
Iceland
5 years
No limit
22 (1)
Indonesia
5 years
No limit
19 (1)
Israel
5 years
No limit
24 (1)
Japan (old treaty)
5 years
No limit
20 (1)
Kazakhstan
5 years
No limit
19
Republic of Korea
5 years
No limit
21 (1)
Kyrgyzstan
5 years
$10,000
VI (1)
a
Latvia
5 years
No limit
20 (1)
Lithuania
5 years
No limit
20 (1)
Moldova
5 years
$10,000
VI (1)
a
Morocco
5 years
No limit
18
Netherlands
3 years
No limit
22 (2)
Norway
5 years
No limit
16 (1)
Philippines
5 years
No limit
22 (1)
Poland
5 years
No limit
18 (1)
Portugal
5 years
No limit
23 (1)
Romania
5 years
No limit
20 (1)
Russia
5 years
No limit
18
Slovak Republic
5 years
No limit
21 (1)
Slovenia
5 years
No limit
20 (1)
c
Spain
5 years
No limit
22 (1)
Tajikistan
5 years
$10,000
VI (1)
a
Thailand
5 years
No limit
22 (1)
Trinidad & Tobago
5 years
No limit
19 (1)
Tunisia
5 years
No limit
20
Turkmenistan
5 years
$10,000
VI (1)
a
Ukraine
5 years
No limit
20
Uzbekistan
5 years
$10,000
VI (1)
a
Venezuela
5 years
No limit
21(1)
c
Special Restrictions
a - Also exempt are scholarship/grant amounts of up to $10,000 received from U.S. sources to provide ordinary living expenses.
b - Does not include Hong Kong
c - Students continuing on for graduate level studies may continue to claim treaty benefits for the additional time needed to complete the degree requirements
- Treaty Benefits for Students with Wages
-
Country
Maximum Presence
Amount
Article #
Special Restrictions & Notes* (see below)
Bangladesh
No limit
$ 8,000
21 (2)
b, Note 4
Barbados
-
-
-
Note 1
Belgium (Old Treaty)
5 years
$2,000
21 (1)
b, g, h
Belgium (New Treaty)
5 yrs.
$ 9,000
19 (1)(b)
b, g, h, Note 2
Bulgaria
No limit
$ 9,000
19 (1)(b)
b, g, h
Canada
5 yrs.
$10,000
XV
a
China
No limit
$ 5,000
20 (c)
b, c
Cyprus
5 yrs.
$ 2,000
21 (1)
b, i
Czech Republic
5 yrs.
$ 5,000
21 (1)
b, c, d
Egypt
5 yrs.
$ 3,000
23 (1)
b, c, i
Estonia
5 yrs.
$ 5,000
20 (1)
b
France
5 yrs.
$ 5,000
21 (1)
b, g, h
Germany
4 yrs.
$ 9,000
20 (4)
b, c, e, Note 2
Hungary
-
-
-
Note 1
Iceland
5 yrs.
$ 2,000
22 (1)
b, c, h
Indonesia
5 yrs.
$ 2,000
19 (1)
b
Israel
5 yrs.
$ 3,000
24 (1)
b, c, h
Jamaica
-
-
-
Note 1
Japan
5 yrs.
$ 2,000
20 (1)
Old treaty - see Note 3, b
Korea
5 yrs.
$ 2,000
21 (1)
b, f, g, h
Latvia
5 yrs.
$ 5,000
20 (1)
b
Lithuania
5 yrs.
$ 5,000
20 (1)
b
Morocco
5 yrs.
$ 2,000
18
b
Netherlands
No limit
$ 2,000
22 (1)
b, c
Norway
5 yrs.
$ 2,000
16 (1)
b, c
Pakistan
No limit
$ 5,000
XIII (1)
Philippines
5 yrs.
$ 3,000
22 (1)
b, f, h
Poland
5 yrs.
$ 2,000
18 (1)
b, f, h
Portugal
5 yrs.
$ 5,000
23 (1)
b
Romania
5 yrs.
$ 2,000
20 (1)
b, f, h
Slovak Republic
5 yrs.
$ 5,000
21 (1)
b, c, f
Slovenia
5 yrs.
$ 5,000
20 (1)
b, c, h
Spain
5 yrs.
$5,000 * minus personal exemption amt. for tax yr.
22 (1)
b
Thailand
5 yrs.
$ 3,000
22 (1)
b, c, f, h
Trinidad & Tobago
5 yrs.
$ 2,000
19 (1)
b, h
Tunisia
5 yrs.
$ 4,000
20
b
Venezuela
5 yrs.
$ 5,000
21 (1)
b
Special Restrictions
a - Student is taxed retroactively on full amount if income is over $10,000.
b - If within the time limit, the student may claim tax treaty even if s(he) qualifies as "resident" for tax purposes but not applicable for permanent resident or immigrant status. Students from People’s Republic of China, however, may claim the treaty as long as they are primarily enrolled to be a student, even if they become US permanent residents or have immigrant status.
c - If treaty benefits are used as a student, they may not be used immediately following as a teacher/researcher.
d - Treaty benefits may be used only once in a lifetime.
e - Tax is retroactive if the student remains past 4 years.
f - If individual re-establishes home country residency s(he) can claim both student & teacher treaty benefits.
g - Student can claim back-to-back treaty exemptions as a student then as a scholar.
h - Limited to 5 calendar years from date of arrival in the U.S.
i - Students continuing for graduate level studies may continue to claim treaty benefits for the additional time needed to complete degree requirements.
Special Notes
Note 1 - Students from Barbados, Hungary & Jamaica can elect to be treated as a "resident alien for tax purposes." This benefit is not available to scholars/researchers from these countries.
Note 2 - Amount of exempt income increased to $9,000 as of 01/01/2008.
Note 3 - OLD TREATY - Students currently in the US who entered the US BEFORE 01/01/05 may still claim treaty benefits up to the 5 year maximum presence limit.
Note 4 - In effect after 01/01/07.