Instructions For Form 8233 printable pdf download

Department of the Treasury

Instructions for Form 8233

Internal Revenue Service

(Rev. March 2009)

Exemption From Withholding on Compensation for Independent (and Certain

Dependent) Personal Services of a Nonresident Alien Individual

fellowship income) and noncompensatory

See the instructions for line 4 on page

General Instructions

scholarship or fellowship income received

3 for additional information for

Section references are to the Internal

from the same withholding agent.

determining residence for purposes of

Revenue Code unless otherwise noted.

claiming a tax treaty withholding

Give the form to the withholding agent.

exemption on this form.

The withholding agent’s responsibilities

If you are a “resident of a treaty

are discussed in the Part IV instructions

country,” you must know the terms

Resident of a Treaty Country

of the tax treaty between the

on page 4.

CAUTION

An alien individual may claim to be a

United States and the treaty country to

resident of a treaty country if he or she

Example. A nonresident alien is

properly complete Form 8233.

qualifies as a resident of that country

primarily present in the United States as a

under the terms of the residency article of

professor, but also is occasionally invited

Purpose of Form

the tax treaty between the United States

to lecture at another educational

In general, section 1441 requires 30%

and that country. See Nonresident Alien

institution. These lectures are not

federal income tax withholding on

earlier.

connected with his teaching obligations

compensation for independent personal

but are in the nature of self-employment.

A nonresident alien may claim a tax

services (defined on this page). Sections

For each tax year, the professor must

treaty benefit on this form only if that

1441, 3401, and 3402 require

complete two Forms 8233 and give one to

individual is the beneficial owner of the

withholding, sometimes at 30% and

each withholding agent to claim tax treaty

income and meets the residency

sometimes at graduated rates, on

benefits on the separate items of income.

requirement and all other requirements

compensation for dependent personal

for benefits under the terms of the tax

services (defined on page 2). However,

Definitions

treaty.

some payments may be exempt from

Compensation for Independent

withholding because of a tax treaty or the

Nonresident Alien

personal exemption amount. Complete

Personal Services

If you are an alien individual (that is, an

and give Form 8233 to your withholding

Independent personal services are

individual who is not a U.S. citizen),

agent if some or all of your compensation

services performed as an independent

specific rules apply to determine if you

is exempt from withholding.

contractor in the United States by a

are a resident alien or a nonresident alien

You can use Form 8233 to claim a tax

nonresident alien who is self-employed

for tax purposes. Generally, you are a

treaty withholding exemption for

rather than an employee. Compensation

resident alien if you meet either the

noncompensatory scholarship or

for such services includes payments for

“green card test” or the “substantial

fellowship income only if you are also

contract labor; payments for professional

presence test” for the calendar year. Any

claiming a tax treaty withholding

services, such as fees to an attorney,

person not meeting either test is generally

exemption for compensation for personal

physician, or accountant, if the payments

a nonresident alien. Additionally, an alien

services (including compensatory

are made directly to the person

individual who qualifies as a “resident of a

scholarship or fellowship income)

performing the services; consulting fees;

treaty country” (defined later) or a bona

received from the same withholding

honoraria paid to visiting professors,

fide resident of Puerto Rico, Guam, the

agent.

teachers, researchers, scientists, and

Commonwealth of the Northern Mariana

prominent speakers; and generally,

Islands, the U.S. Virgin Islands, or

Do not use Form 8233 if you have

payments for performances by public

American Samoa is a nonresident alien

an office in the United States

entertainers.

individual.

regularly available to you for

CAUTION

Business profits. Certain treaties do

performing personal services.

For more information on the tests used

not have an independent personal

Additional information. You can get

to determine resident alien or nonresident

services article. Payments for

the complete text of most U.S. tax treaties

alien status, see Pub. 519, U.S. Tax

independent personal services may be

from the IRS website at

Guide for Aliens.

covered under the business profits article

Technical explanations for many of those

of an applicable income tax treaty. If you

Even though a nonresident alien

treaties are also available at that site.

are eligible to claim exemption from

individual married to a U.S. citizen

Also, see Pub. 901, U.S. Tax Treaties, for

withholding on this type of income,

or resident alien may choose to be

a quick reference guide to the provisions

CAUTION

complete and give Form 8233 to the

treated as a resident alien for certain

of U.S. tax treaties. You can get any of

withholding agent.

purposes (for example, filing a joint

the forms or publications referred to in

income tax return), such individual is still

Public entertainers. Special restrictions

these instructions by calling

treated as a nonresident alien for

on exemption from or reduction of

1-800-TAX-FORM (1-800-829-3676) or

withholding tax purposes on all income

withholding apply to nonresident alien

by downloading them from the website.

except wages.

public entertainers (such as actors,

Giving Form 8233 to the

musicians, artists, and athletes).

U.S. Person

Generally, Form 8233 cannot be

Withholding Agent

For purposes of this form, a U.S. person

accepted because the exemption may be

is a U.S. citizen or resident alien.

You must complete Form 8233:

based on factors that cannot be

•

For each tax year (be sure to specify

determined until after the end of the year.

Tax Treaty Withholding

the tax year in the space provided above

These individuals are subject to 30%

Exemption

Part I of the form),

withholding from gross income paid for

•

For each withholding agent, and

This term refers to an exemption from

personal services performed unless a

•

For each type of income. However, you

withholding permitted by IRS regulations

reduced rate of withholding is applied for

may use one Form 8233 to claim a tax

under section 1441 that is based on a tax

using Form 13930, Application for Central

treaty withholding exemption for both

treaty benefit. See Resident of a Treaty

Withholding Agreement. In addition, many

compensation for personal services

Country next for requirements for claiming

tax treaties contain separate articles that

(including compensatory scholarship or

a tax treaty benefit on this form.

apply to public entertainers. If present,

Cat. No. 22663B

Instructions For Form 8233

Related Articles

Related forms

Related Categories