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. (Return to Tax Treaties.) |
| 2 | Applies only if training or experience is received from a person other than alien's employer. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 4 | Does not apply to compensation for research work primarily for private benefit. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 7 | Does not apply to fees to a directors of a U.S. corporation. (Return to Tax Treaties.) |
| 8 | Does not apply to compensation for research work for other than the U.S. educational institution involved. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 10 | Applies only to full-time students or trainees. (Return to Tax Treaties.) |
| The time limit pertains only to an apprentice or business trainee. (Return to Tax Treaties.) | |
| 12 | Does not apply to compensation paid to public entertainers (actors, artists, musicians, athletes, etc.) (Return to Tax Treaties.) |
| 13 | Does not apply to compensation paid to public entertainers that is more than $100 a day. (Return to Tax Treaties.) |
| 14 | Exemption applies only if the compensation is subject to tax in the country of residence. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 21 | Amounts received in excess of a reasonable fixed amount payable to all directors for attending meetings in the United States are taxable. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 25 | Exemption does not apply if gross receipts (including reimbursements) exceed this amount. (Return to Tax Treaties.) |
| 26 | Exemption does not apply if net income exceeds this amount. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 28 | Exemption does not apply if compensation exceeds this amount. (Return to Tax Treaties.) |
| 29 | The exemption applies only to income from activities performed under special cultural exchange programs agreed to by the U.S. and Chinese governments. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 31 | The 5-year limit pertains only to training or research. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 33 | Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 21. (Return to Tax Treaties.) |
| 34 | Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 22. (Return to Tax Treaties.) |
| 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). (Return to Tax Treaties.) |
| 36 | Exemption applies only to compensation for personal services performed in connection with, or incidental to, the individual's study, research, or training. (Return to Tax Treaties.) |
| 37 | Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 24(1). (Return to Tax Treaties.) |
| 38 | Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 22(1). (Return to Tax Treaties.) |
| 39 | Exemption does not apply if the individual previously claimed the benefit of this Article. (Return to Tax Treaties.) |
| 40 | The combined period of benefits under Article 20 and 21(1) cannot exceed 5 years. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 42 | Exemption does not apply if gross receipts (including reimbursements) exceed this amount during any 12-month period. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 44 | Applies to grants, allowances, and other similar payments received for studying or doing research. (Return to Tax Treaties.) |
| 45 | A $10,000 limit applies if the expense is borne by a permanent establishment or a fixed base in the United States. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 48 | The combined benefit for teaching cannot exceed 5 years. (Return to Tax Treaties.) |
| 49 | Exemption does not apply if the recipient maintains a permanent establishment in the U.S. with which the income is effectively connected. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |
| 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). (Return to Tax Treaties.) |
| 53 | Exemption does not apply if gross receipts exceed this amount. (Return to Tax Treaties.) |
| 54 | Treated as business profits under Article 7 (VII) of the treaty. (Return to Tax Treaties.) |
| 55 | Applies also to a participant in a program sponsored by the U.S. Government or an international organization. (Return to Tax Treaties.) |
| 56 | Exemption does not apply if during the immediately preceding period, the individual claimed the benefit of Article 20(2), (3), or (4). (Return to Tax Treaties.) |
| 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. (Return to Tax Treaties.) |