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IRS PUB 901 US TAX TREATISE (2016) 34 Pages
IRS PUB 901 US TAX TREATISE (2016) 34 Pages
U.S. Tax
of the Introduction . . . . . . . . . . . . . . . . . . 1
Treasury
Internal Application of Treaties ........... 2
Revenue
Service Treaties Tax Exemptions Provided by
Treaties . . . . . . . . . . . . . ..... 2
Personal Services Income . . . ..... 2
Professors, Teachers, and
Researchers . . . . . . . . . . . . 15
Students and Apprentices . . . . . . . 19
Wages and Pensions Paid by a
Foreign Government . . . . . . . . 27
Future Developments
For the latest information about developments
related to Publication 901, such as treaties
effective after it was published, go to
www.irs.gov/pub901.
What’s New
Tax treaty tables. The treaty tables previously
contained in this publication have been updated
and moved to IRS.gov. You can locate the ta
bles on IRS.gov by entering "Tax Treaty Table"
in the search box. Click on "Tax Treaty Tables."
You can also access the tables by going to
www.irs.gov/Individuals/International-
Taxpayers/Tax-Treaty-Tables.
Reminders
Disclosure of a treaty-based position that
reduces your tax. If you take the position that
any U.S. tax is overruled or otherwise reduced
by a U.S. treaty (a treatybased position), you
generally must disclose that position on your af
fected return. See Application of Treaties, later.
U.S.–U.S.S.R. income tax treaty. The U.S.–
U.S.S.R. income tax treaty remains in effect for
the following members of the Commonwealth of
Independent States: Armenia, Azerbaijan, Bela
rus, Georgia, Kyrgyzstan, Moldova, Tajikistan,
Turkmenistan, and Uzbekistan. That treaty will
remain in effect until new treaties with these in
dividual countries are negotiated and ratified.
Provisions of the U.S.–U.S.S.R. income tax
treaty are discussed in this publication under
Commonwealth of Independent States.
U.S.–China income tax treaty. The U.S.–
China income tax treaty does not apply to Hong
Kong.
Introduction
Get forms and other information faster and easier at: This publication will tell you whether a tax treaty
• IRS.gov (English) • IRS.gov/Korean (한국어) between the United States and a particular
• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) country offers a reduced rate of, or possibly a
• IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (TiếngViệt)
Income that residents of France receive for The exemption does not apply to directors' Iceland
labor or personal services performed in the Uni fees and other similar payments received by a
ted States as employees (dependent personal resident of Germany for services performed in Income that residents of Iceland receive for per
services) is exempt from U.S. income tax if the the United States as a member of the board of sonal services as independent contractors or
residents meet three requirements. directors of a company resident in the United selfemployed individuals is subject to the provi
They are in the United States for no more States. sions of Article 7 (Business Profits) of the treaty.
than 183 days in any 12month period. Under that provision, business profits are ex
Their income is paid by, or on behalf of, an Income residents of Germany receive as empt from U.S. income tax unless the individual
employer who is not a resident of the Uni public entertainers (such as theater, motion pic has a permanent establishment in the United
ted States. ture, radio, or television artists, or musicians) or States. If they have a permanent establishment
Their income is not borne by a permanent athletes is subject to U.S. tax if their gross re in the United States, they are taxed on the profit
establishment or a fixed base that the em ceipts, including reimbursed expenses, from attributable to the permanent establishment.
ployer has in the United States. their entertainment activities in the United
States are more than $20,000 during the calen Income that residents of Iceland receive for
dar year. Income of German entertainers or ath services performed in the United States as em
letes is exempt from U.S. tax if their visit to the ployees (dependent personal services) is
An individual who is a resident of the Philip An individual who is a resident of Romania on This exemption does not apply to income
pines on the date of arrival in the United States the date of arrival in the United States and who from research carried on mainly for the private
and who is temporarily in the United States pri is temporarily in the United States at the invita benefit of any person rather than in the public
marily to teach or engage in research, or both, tion of the U.S. Government, a university, or interest. This exemption does not apply if, dur
at a university or other recognized educational other recognized educational institution in the ing the immediately preceding period, the bene
institution is exempt from U.S. income tax on in United States primarily to teach or engage in re fits described in treaty Article 22(1), pertaining
come from the teaching or research for not search, or both, at a university or other recog to students, were claimed.
more than 2 years from the date of arrival in the nized educational institution is exempt from
United States. The individual must have been U.S. income tax on income for the teaching or Trinidad and Tobago
invited to the United States for a period not ex research for a maximum of 2 years from the
pected to be longer than 2 years by the U.S. date of arrival in the United States. An individual who is a resident of Trinidad and
Government or a state or local government, or Tobago on the date of arrival in the United
by a university or other recognized educational This exemption does not apply to income States and who is temporarily in the United
institution in the United States. from research carried on mainly for the private States at the invitation of the U.S. Government,
benefit of any person rather than in the public a university, or other accredited educational in
This exemption does not apply to income interest. stitution in the United States primarily to teach
from research carried on mainly for the private or engage in research, or both, at a university or
benefit of any person rather than in the public Slovak Republic other accredited educational institution is ex
interest. The exemption does not apply if, dur empt from U.S. income tax on the income re
ing the immediately preceding period, the bene An individual is exempt from U.S. income tax on ceived for the teaching or research for a maxi
fits described in Article 22(1) of the treaty, per income for teaching or research for up to 2 mum of 2 years from the date of arrival in the
taining to students, were claimed. years if he or she: United States.
Is a resident of the Slovak Republic imme
diately before visiting the United States, This exemption does not apply to income
Poland from research carried on mainly for the private
and
Is in the United States primarily to teach or benefit of any person rather than in the public
An individual who is a resident of Poland on the
conduct research at a university, college, interest. Nor does the exemption apply to in
date of arrival in the United States and who is
school, or other accredited educational or come if an agreement exists between the Gov
temporarily in the United States at the invitation
research institution. ernments of Trinidad and Tobago and the Uni
of the U.S. Government, a university, or other
ted States for providing the services of these
recognized educational institution in the United
A Slovak resident is entitled to these bene individuals.
States primarily to teach or engage in research,
or both, at a university or other recognized edu fits only once. However, the exemption does
cational institution is exempt from U.S. income not apply if: Turkey
tax on income for the teaching or research for a The resident claimed during the immediate
maximum of 2 years from the date of arrival in preceding period the benefits described An individual who was a resident of Turkey im
the United States. later under Students and Apprentices, or mediately before visiting the United States who
The income is from research undertaken is in the United States for not longer than 2
primarily for the private benefit of a specific years for the purpose of teaching or engaging in
The exemption does not apply if the resident
person or persons. scientific research is exempt from U.S. income
claimed, during the immediately preceding pe
tax on payments received from outside the Uni
riod, the benefits described later under Stu-
Slovenia ted States for teaching or research.
dents and Apprentices.