Wages and Pensions Paid by a Foreign Government
Wages, salaries, pensions, and annuities paid by the governments of
the following countries to their residents who are present in the
United States as nonresident aliens generally are exempt from U.S.
income tax. The conditions under which the income is exempt are stated
for each of the countries listed.
Exemption under U.S. tax law.
Employees of foreign countries who do not qualify under a tax
treaty provision and employees of international organizations should
see if they can qualify for exemption under U.S. tax law.
If you work for a foreign government in the United States, your
foreign government salary is exempt from U.S. tax if you perform
services similar to those performed by U.S. government employees in
that foreign country and that foreign government grants an equivalent
exemption. If you work for an international organization in the United
States, your salary from that source is exempt from U.S. tax. See
chapter 10 of Publication 519 for more information.
Australia
Salaries, wages, and similar income, including pensions, paid by
Australia, its political subdivisions, agencies, or authorities to its
citizens (other than U.S. citizens) for performing governmental
functions as an employee of any of the above entities are exempt from
U.S. income tax.
Austria
Wages, salaries, similar income, and pensions and annuities paid
from public funds of Austria, its political subdivisions, or its local
authorities, to citizens of Austria for performing governmental
functions as an employee are exempt from U.S. tax.
However, this exemption does not apply to payments for services
performed in connection with a trade or business carried on by Austria
or its political subdivisions or local authorities.
Barbados
Income, including a pension, paid from the public funds of
Barbados, or its political subdivisions or local authorities, to a
citizen of Barbados for performing governmental functions is exempt
from U.S. income tax.
However, this exemption does not apply to payments for services in
connection with a business carried on by Barbados or its political
subdivisions or local authorities.
Belgium
Wages, salaries, similar income, and pensions and annuities paid
by, or from public funds of, Belgium, its political subdivisions, or
its local authorities, to citizens of Belgium (or to citizens of
countries other than the United States or Belgium who come to the
United States and are employed by Belgium or its political
subdivisions or local authorities) for performing governmental
functions are exempt from U.S. tax.
However, this exemption does not apply to payments for services
performed in connection with a trade or business carried on by Belgium
or its political subdivisions or local authorities.
Canada
Wages, salaries, and similar income (other than pensions) paid by
Canada or by a Canadian political subdivision or local authority to a
citizen of Canada for performing governmental functions are exempt
from U.S. income tax. This exemption does not apply, however, to
payments for services performed in connection with a trade or business
carried on by Canada or its political subdivisions or local
authorities.
Also see Publication 597, Information on the United
States - Canada Income Tax Treaty.
China, People's Republic of
Income, other than a pension, paid by the People's Republic of
China or its political subdivisions or local authorities to an
individual for services performed for the paying governmental body is
exempt from U.S. income tax. However, the exemption does not apply to
payments for services performed in the United States by a resident of
the United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by the People's Republic of China for services
performed for China are exempt from U.S. income tax unless the
recipient is both a citizen and a resident of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by the People's
Republic of China or its subdivisions or local authorities.
Commonwealth of Independent States
Wages, salaries, and similar income paid by the C.I.S. or a member
of the C.I.S. to its citizens for personal services performed as an
employee of a governmental agency or institution of the C.I.S. or a
member of the C.I.S. (excluding local government employees) in the
discharge of governmental functions are exempt from U.S. income tax.
For this purpose, persons engaged in commercial activities are not
considered engaged in the discharge of governmental functions.
Cyprus
Wages, salaries, and similar income, including pensions, annuities,
and similar benefits, paid from public funds of Cyprus to a citizen of
Cyprus for labor or personal services performed as an employee of
Cyprus in the discharge of governmental functions are exempt from U.S.
income tax.
Czech Republic
Income, including a pension, paid from the public funds of the
Czech Republic, its political subdivisions, or local authorities to a
Czech citizen for services performed in the discharge of governmental
functions is exempt from U.S. income tax. This exemption does not
apply to income paid for services performed in connection with a
business carried on by the Czech Republic, its political subdivisions,
or local authorities.
Denmark
Note:
See the effective dates of the new treaty under Important
Changes at the beginning of this publication.
New treaty.
Income, other than a pension, paid from public funds of Denmark,
its political subdivisions, or local authorities to an individual for
services performed for the paying governmental body in the discharge
of governmental functions is exempt from U.S. income tax. However, the
exemption does not apply if the services are performed in the United
States by a resident of the United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid from the public funds of Denmark, its political
subdivisions, or local authorities for services performed for Denmark
are exempt from U.S. income tax unless the recipient is either a
resident or citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by
Denmark, its political subdivisions, or local authorities.
Former treaty.
Wages, salaries, and similar income and pensions paid by Denmark,
or any public authority in Denmark, to individuals living in the
United States are exempt from U.S. income tax. This exemption does not
apply to citizens of the United States or alien residents of the
United States.
Egypt
Wages, salaries, and similar income, including pensions, annuities,
and similar benefits, paid from public funds of the Arab Republic of
Egypt to a citizen of Egypt (or to a citizen of another country who
comes to the United States specifically to work for the Government of
Egypt) for labor or personal services performed as an employee of the
national Government of Egypt, or any of its agencies, in the discharge
of governmental functions are exempt from U.S. income tax.
This exemption does not apply to U.S. citizens or to alien
residents of the United States. The exemption also does not apply to
payments for services performed in connection with a trade or business
carried on by Egypt or any of its agencies.
Estonia
Income, other than a pension, paid by or from public funds of
Estonia, its political subdivisions, or local authorities to an
individual for services performed as an employee for the paying
governmental body in the discharge of governmental functions is exempt
from U.S. income tax. However, the exemption does not apply if the
services are performed in the United States by a resident of the
United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by or from the public funds of Estonia, its political
subdivisions, or local authorities for services performed for Estonia
are exempt from U.S. income tax unless the recipient is both a
resident and citizen of the United States.
Finland
Income, other than a pension, paid by Finland, its political
subdivisions, statutory bodies, or local authorities to an individual
for services performed for the paying governmental body is exempt from
U.S. income tax. However, the exemption does not apply to payments for
services performed in the United States by a U.S. resident who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Finland for services performed for Finland are
exempt from U.S. income tax unless the recipient is a resident and
citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by Finland
or its political subdivisions, statutory bodies, or local authorities.
France
Income, including pensions, paid by the French Government or a
local authority thereof to an individual in the United States for
services performed for France (or for a local authority of France) in
the discharge of governmental functions is exempt from U.S. tax. This
exemption does not apply to a person who is both a resident and
citizen of the United States and not a French national.
This exemption does not apply to any income or pensions paid
because of services (or past services) performed in connection with a
business carried on by the French Government (or a local authority
thereof).
Germany
Wages, salaries, and similar income and pensions paid by Germany,
its Laender, or municipalities, or their public pension funds are
exempt from U.S. income tax if paid to individuals other than U.S.
citizens and other than individuals admitted to the United States for
permanent residence.
Greece
Wages, salaries, and similar income and pensions paid by Greece or
its subdivisions to individuals living in the United States for
services rendered to Greece or its subdivisions are exempt from U.S.
income tax. This exemption does not apply to citizens of the United
States or alien residents of the United States.
Hungary
Income (other than a pension) paid by the Republic of Hungary or
its political subdivisions for labor or personal services performed
for the paying governmental body is exempt from U.S. tax. However, the
exemption does not apply to payments for services performed in the
United States by a resident of the United States who either:
- Is a U.S. citizen, or
- Did not become a resident of the United States only to
perform the services.
Pensions paid by Hungary for services performed for Hungary are
exempt from U.S. income tax unless the recipient is both a citizen and
a resident of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by Hungary
or its subdivisions.
Iceland
Wages, salaries, and similar income, including pensions and similar
benefits, paid by or from public funds of the Republic of Iceland, a
political subdivision, or a local authority to a citizen of Iceland
(other than a U.S. citizen or one admitted to the United States for
permanent residence) for labor or personal services performed for
Iceland or its political subdivisions or local authorities in the
discharge of governmental functions are exempt from U.S. tax.
India
Income, other than a pension, paid by India, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply if the services are
performed in the United States by a U.S. resident who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by India for services performed for India are exempt
from U.S. tax unless the individual is both a resident and citizen of
the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by India, its
subdivisions, or local authorities.
Indonesia
Income, other than a pension, paid by Indonesia, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply if the services are
performed in the United States by a U.S. resident who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Indonesia for services performed for Indonesia are
exempt from U.S. tax.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by
Indonesia, its subdivisions, or local authorities.
Ireland
Income, other than a pension, paid by Ireland or its political
subdivisions or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Ireland for services performed for Ireland are
exempt from U.S. income tax unless the recipient is both a resident
and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by Ireland or its
subdivisions or local authorities.
Israel
Wages, salaries, and similar income, including pensions and similar
benefits, paid from public funds by the national government of Israel
or its agencies, for services performed in the discharge of
governmental functions, are exempt from U.S. income tax. This
exemption does not apply to citizens of the United States or alien
residents of the United States.
Italy
Income, other than a pension, paid by Italy or by an Italian
political or administrative subdivision or local authority to an
individual for services performed for the paying governmental body is
exempt from U.S. income tax. However, the exemption does not apply to
payments for services performed in the United States by a resident of
the United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
The spouse and dependent children of an individual, however,
are not subject to the second restriction if that individual is
receiving exempt income for governmental services performed for Italy
and that individual does not come under either of the restrictions.
Pensions paid by Italy for services performed for Italy are exempt
from U.S. income tax unless the recipient is both a citizen and a
resident of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by Italy
or its subdivisions or local authorities.
Jamaica
Income, other than a pension, paid by the Government of Jamaica or
its political subdivisions or local authorities for personal services
performed for the paying governmental body is exempt from U.S. income
tax.
This exemption does not apply to payments for services performed in
the United States by an individual who is a citizen and resident of
the United States.
Pensions paid by Jamaica for services performed for Jamaica
generally are exempt from U.S. income tax. However, if the recipient
of the pension is a citizen and resident of the United States and
was a U.S. citizen at the time the services were performed, the
pension is taxable in the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by Jamaica
or its subdivisions or local authorities.
Japan
Salaries, wages, and similar income, including pensions and similar
benefits, paid by Japan or out of funds to which Japan or any of its
local authorities contributes to an individual who is a national of
Japan (other than a U.S. citizen or one admitted to the United States
for permanent residence) for labor or personal services performed as
an employee of the Government of Japan or any of its local authorities
are exempt from U.S. income tax.
Kazakstan
Income, other than a pension, paid by Kazakstan, or its
subdivisions or local authorities to an individual for government
services is exempt from U.S. tax. However, the exemption does not
apply if the services are performed in the United States by a U.S.
resident who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident solely for the purpose of
performing the services.
These exemptions do not apply to income for services performed
in connection with a business.
Pensions paid by Kazakstan, or its subdivisions or local
authorities for services performed for Kazakstan is exempt from U.S.
tax unless the individual is both a resident and citizen of the United
States.
Korea, Republic of
Wages, salaries, and similar income, including pensions and similar
benefits, paid from public funds of the Republic of Korea to a citizen
of Korea (other than a U.S. citizen or an individual admitted to the
United States for permanent residence) for services performed as an
employee of Korea discharging government functions are exempt from
U.S. income tax.
Latvia
Income, other than a pension, paid by or from public funds of
Latvia, its political subdivisions, or local authorities to an
individual for services performed as an employee for the paying
governmental body in the discharge of governmental functions is exempt
from U.S. income tax. However, the exemption does not apply if the
services are performed in the United States by a resident of the
United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by or from the public funds of Latvia, its political
subdivisions, or local authorities for services performed for Latvia
are exempt from U.S. income tax unless the recipient is both a
resident and citizen of the United States.
Lithuania
Income, other than a pension, paid by or from public funds of
Lithuania, its political subdivisions, or local authorities to an
individual for services performed as an employee for the paying
governmental body in the discharge of governmental functions is exempt
from U.S. income tax. However, the exemption does not apply if the
services are performed in the United States by a resident of the
United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by or from the public funds of Lithuania, its
political subdivisions, or local authorities for services performed
for Lithuania are exempt from U.S. income tax unless the recipient is
both a resident and citizen of the United States.
Luxembourg
Note:
See the effective dates of the new treaty under Important
Changes at the beginning of this publication.
New treaty.
Income, other than a pension, paid by Luxembourg, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply if the services are
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Luxembourg, its political subdivisions, or local
authorities for services performed for Luxembourg are exempt from U.S.
income tax unless the recipient is both a resident and citizen of the
United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by
Luxembourg, its political subdivisions, or local authorities.
Former treaty.
Wages, salaries, and similar income, and pensions, annuities, and
similar benefits paid by Luxembourg, its political subdivisions, or
its compulsory social security funds for services performed for
Luxembourg or its political subdivisions in discharge of governmental
functions are exempt from U.S. income tax. These amounts are exempt
only if they are paid to individuals other than U.S. citizens or
individuals admitted to the United States for permanent residence.
Mexico
Income, other than a pension, paid by Mexico, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply if the services are
performed in the United States by a U.S. resident who either:
- Is a U.S. national, or
- Did not become a resident of the United States solely for
purposes of performing the services.
Pensions paid by Mexico, its political subdivisions, or local
authorities for services performed for the paying governmental body
are exempt from U.S. income tax unless the individual is both a
resident and national of the United States.
These exemptions do not apply to income or pensions connected with
commercial or industrial activities carried on by Mexico, its
political subdivisions, or local authorities.
Morocco
Wages, salaries, and similar income, including pensions and similar
benefits, paid from public funds of the Kingdom of Morocco to a
citizen of Morocco (other than a U.S. citizen or an individual
admitted to the United States for permanent residence) for labor or
personal services performed for Morocco or for any of its political
subdivisions or local authorities in the discharge of governmental
functions are exempt from U.S. income tax.
Netherlands
Income, other than a pension, paid by the Netherlands, its
political subdivisions, or local authorities to an individual for
services performed for the paying governmental body is exempt from
U.S. income tax. However, the exemption does not apply if the services
are rendered in the United States and the individual is a U.S.
resident who either:
- Is a U.S. national, or
- Did not become a U.S. resident solely for the purpose of
performing the services.
Pensions paid by the Netherlands for services performed for the
Netherlands are exempt from U.S. income tax unless the individual is
both a resident and national of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by the Netherlands,
its political subdivisions, or local authorities.
New Zealand
Income (other than pensions) paid by the Government of New Zealand,
its political subdivisions, or local authorities for services
performed in the discharge of governmental functions is exempt from
U.S. income tax. However, the income is not exempt if the services are
performed in the United States by a U.S. citizen resident in the
United States or by a resident of the United States who did not become
a resident only to perform the services.
Pensions paid by New Zealand in consideration for past governmental
services are exempt from U.S. income tax unless paid to U.S. citizens
resident in the United States.
These exemptions do not apply to payments for services performed in
connection with any trade or business carried on for profit by the
Government of New Zealand (or its subdivisions or local authorities).
Norway
Wages, salaries, and similar income, including pensions and similar
benefits paid by or from public funds of Norway or its political
subdivisions or local authorities to a citizen of Norway for labor or
personal services performed for Norway or any of its political
subdivisions or local authorities in the discharge of governmental
functions are exempt from U.S. income tax.
Pakistan
Income, including pensions and annuities, paid to certain
individuals by or on behalf of the Government of Pakistan or the
Government of a Province in Pakistan or one of its local authorities
for services performed in the discharge of functions of that
Government or local authority is exempt from U.S. income tax. To be
exempt from tax, these payments must be made to citizens of Pakistan
who do not have immigrant status in the United States. This exemption
does not apply to payments for services performed in connection with
any trade or business carried on for profit.
Philippines
Wages, salaries, and similar income, including pensions, annuities,
and similar benefits, paid from public funds of the Republic of the
Philippines to a citizen of the Philippines (or to a citizen of
another country other than the United States who comes to the United
States specifically to work for the Government of the Philippines) for
labor or personal services performed as an employee of the national
Government of the Philippines or any of its agencies in the discharge
of governmental functions are exempt from U.S. income tax.
Poland
Wages, salaries, and similar income, including pensions, annuities,
and similar benefits, paid from public funds of Poland to a citizen of
Poland (other than a U.S. citizen or one admitted to the United States
for permanent residence) for labor or personal services performed as
an employee of the national Government of Poland in the discharge of
governmental functions are exempt from U.S. income tax.
Portugal
Income, other than a pension, paid by Portugal, its political or
administrative subdivisions, or local authorities to an individual for
services performed for the paying governmental body is exempt from
U.S. income tax. However, the exemption does not apply to payments for
services performed in the United States by a U.S. resident who either:
- Is a U.S. national, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Portugal for services performed for Portugal are
exempt from U.S. income tax unless the recipient is a resident and
national of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by Portugal or its
political or administrative subdivisions, or local authorities.
Romania
Wages, salaries, and similar income, including pensions, annuities,
and similar benefits, paid from public funds of Romania to a citizen
of Romania (other than a U.S. citizen or one admitted to the United
States for permanent residence) for labor or personal services
performed as an employee of the national Government of Romania in the
discharge of governmental functions are exempt from U.S. income tax.
Russia
Income, other than a pension, paid by Russia, its republics, or
local authorities to an individual for government services is exempt
from U.S. tax. However, the exemption does not apply if the services
are performed in the United States by a U.S. resident who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident solely for the purpose of
performing the services.
Pensions paid by Russia, its republics, or local authorities for
services performed for Russia is exempt from U.S. tax unless the
individual is both a resident and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business.
Slovak Republic
Income, including a pension, paid from the public funds of the
Slovak Republic, its political subdivisions, or local authorities to a
Slovak citizen for services performed in the discharge of governmental
functions is exempt from U.S. income tax. This exemption does not
apply to income paid for services performed in connection with a
business carried on by the Slovak Republic, its political
subdivisions, or local authorities.
South Africa
Income, other than a pension, paid by South Africa or its political
subdivisions or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by South Africa for services performed for South
Africa are exempt from U.S. income tax unless the recipient is both a
resident and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by South Africa or
its subdivisions or local authorities.
Spain
Income, other than a pension, paid by Spain, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Spain, its political subdivisions, or local
authorities for services performed for Spain are exempt from U.S. tax
unless the individual is a citizen and resident of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by Spain,
its subdivisions, or local authorities.
Sweden
Income, other than a pension, paid by Sweden, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply if the services are
performed in the United States by a U.S. resident who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident solely for the purpose of
performing the services.
Pensions paid by Sweden, its political subdivisions, or local
authorities for services performed for Sweden are exempt from U.S. tax
unless the individual is both a resident and citizen of the United
States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by Sweden, its
political subdivisions, or local authorities.
Switzerland
Income, other than a pension, paid by Switzerland or its political
subdivisions or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Switzerland for services performed for Switzerland
are exempt from U.S. income tax unless the recipient is both a
resident and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by Switzerland or
its subdivisions or local authorities.
Thailand
Income, other than a pension, paid by Thailand or its political
subdivisions or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Thailand for services performed for Thailand are
exempt from U.S. income tax unless the recipient is both a resident
and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by Thailand or its
subdivisions or local authorities.
Trinidad and Tobago
Wages, salaries and similar income and pensions, annuities, and
similar benefits paid by or from the public funds of the Government of
Trinidad and Tobago to a national of that country for services
performed for Trinidad and Tobago in the discharge of governmental
functions are exempt from U.S. tax.
Tunisia
Income, other than a pension, paid by Tunisia, its political
subdivisions, or local authorities to a Tunisian citizen for personal
services performed in the discharge of governmental functions is
exempt from U.S. income tax.
Pensions paid by Tunisia, its political subdivisions, or local
authorities for services performed for Tunisia are exempt from U.S.
income tax unless the recipient is a U.S. citizen.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by
Tunisia, its political subdivisions, or local authorities.
Turkey
Income, other than a pension, paid by Turkey or its political
subdivisions or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Turkey for services performed for Turkey are
exempt from U.S. income tax unless the recipient is both a resident
and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a business carried on by Turkey or its
subdivisions or local authorities.
Ukraine
Note:
See the effective dates of the new treaty under Important
Changes at the beginning of this publication. For information on
the old provisions, see Commonwealth of Independent States.
Income, other than a pension, paid from public funds of Ukraine,
its political subdivisions, or local authorities to an individual for
services performed in the discharge of governmental functions is
exempt from U.S. income tax. However, the exemption does not apply if
the services are performed in the United States by a resident of the
United States who either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by, or by funds created by, Ukraine, its political
subdivisions, or local authorities for services performed for Ukraine
are exempt from U.S. income tax unless the recipient is both a
resident and citizen of the United States.
These exemptions do not apply to income or pensions for services
performed in connection with a trade or business carried on by
Ukraine, its political subdivisions, or local authorities.
United Kingdom
Income, other than a pension, paid by the United Kingdom to
employees for services performed for the United Kingdom is exempt from
U.S. income tax. The exemption does not extend to employees of a
political subdivision or local authority of the United Kingdom. The
exemption does not apply if the services are performed in the United
States and the recipient is both a citizen and a resident of the
United States.
Pensions paid by the United Kingdom or its political subdivisions
or local authorities to individuals for services performed in the
discharge of governmental functions are exempt from U.S. income tax,
unless the recipient is both a citizen and a resident of the United
States.
These exemptions do not apply to payments or pensions for services
performed in connection with a business carried on by or on behalf of
the United Kingdom.
Venezuela
Income, other than a pension, paid by Venezuela, its political
subdivisions, or local authorities to an individual for services
performed for the paying governmental body is exempt from U.S. income
tax. However, the exemption does not apply to payments for services
performed in the United States by a resident of the United States who
either:
- Is a U.S. citizen, or
- Did not become a U.S. resident only to perform the
services.
Pensions paid by Venezuela, its political subdivisions, or local
authorities for services performed for Venezuela are exempt from U.S.
income tax unless the recipient is both a resident and citizen of the
United States.
These exemptions do not apply to payments or pensions for services
performed in connection with a business carried on by Venezuela, its
political subdivisions, or local authorities.
Explanation of Tables
The paragraphs below describe the tables that follow and provide
additional information that may make the tables more useful to you.
In the tables, you will see the term New Treaty; the
effective date of a new treaty is shown under Important Changes
at the beginning of this publication.
Table 1
This table lists the income tax rates on such income as interest,
dividends, capital gains, rents, and royalties. The income code
numbers shown in this table are the same as the income codes on Form
1042-S, Foreign Person's U.S. Source Income Subject to
Withholding.
Interest.
If you are a nonresident alien who receives interest that is not
effectively connected with the conduct of a U.S. trade or business,
you do not include the interest in income if it is paid on
deposits with banks, on accounts or deposits with certain financial
institutions, or on certain amounts held by insurance companies. These
amounts are exempt from U.S. tax even though they are considered to be
income from a U.S. source. Also exempt from U.S. tax (although
considered from U.S. sources) is certain portfolio interest on
obligations issued after July 18, 1984. See Publication 519 for more
information.
Table 2
This table lists the different kinds of personal service income
that may be fully or partly exempt from U.S. income tax. You must meet
all of the treaty requirements before the item of income
can be exempt from U.S. income tax. The income code numbers shown in
this table are the same as the income codes on Form 1042-S,
Foreign Person's U.S. Source Income Subject to Withholding.
Independent personal services.
The term independent personal services generally means
services you perform for your own account if you receive the income
and bear the losses arising from those services. Examples of these
services are those provided by physicians, lawyers, engineers,
dentists, and accountants who perform personal services as sole
proprietors or partners.
Dependent personal services.
Dependent personal services usually are those you perform for
someone else as an employee.
Table 3
This table lists the countries that have tax treaties with the
United States. Some treaties are published in the Internal
Revenue Bulletins (I.R.B.) and the Cumulative Bulletins
(C.B.), which contain official matters of the Internal Revenue
Service. The column headed Citation shows the number of the
I.R.B. or C.B. and the page on which a particular treaty may be found.
Regulations implementing some treaties were issued as Treasury
Decisions (T.D.). Other treaties are explained by Treasury
explanation. The fifth column lists the T.D. numbers and the I.R.B. or
C.B. in which each T.D. or Treasury explanation is printed.
You can subscribe to the I.R.B. or buy volumes of the C.B. from the
Government Printing Office or you are welcome to read them in most
Internal Revenue Service offices. Many public libraries and business
organizations subscribe to a commercial tax service that publishes the
treaties and regulations or explanations.
How To Get Tax Help
You can get help with unresolved tax issues, order free
publications and forms, ask tax questions, and get more information
from the IRS in several ways. By selecting the method that is best for
you, you will have quick and easy access to tax help.
Contacting your Taxpayer Advocate.
If you have attempted to deal with an IRS problem unsuccessfully,
you should contact your Taxpayer Advocate.
The Taxpayer Advocate represents your interests and concerns within
the IRS by protecting your rights and resolving problems that have not
been fixed through normal channels. While Taxpayer Advocates cannot
change the tax law or make a technical tax decision, they can clear up
problems that resulted from previous contacts and ensure that your
case is given a complete and impartial review.
To contact your Taxpayer Advocate:
- Call the Taxpayer Advocate at
1-877-777-4778.
- Call the IRS at
1-800-829-1040.
- Call, write, or fax the Taxpayer Advocate office in your
area.
- Call 1-800-829-4059 if you are
a TTY/TDD user.
For more information, see Publication 1546, The Taxpayer
Advocate Service of the IRS.
Free tax services.
To find out what services are available, get Publication 910,
Guide to Free Tax Services. It contains a list of free tax
publications and an index of tax topics. It also describes other free
tax information services, including tax education and assistance
programs and a list of TeleTax topics.
Personal computer. With your personal computer and
modem, you can access the IRS on the Internet at
www.irs.gov. While visiting our web site, you can select:
- Frequently Asked Tax Questions (located under
Taxpayer Help & Ed) to find answers to questions you
may have.
- Forms & Pubs to download forms and
publications or search for forms and publications by topic or
keyword.
- Fill-in Forms (located under Forms &
Pubs) to enter information while the form is displayed and then
print the completed form.
- Tax Info For You to view Internal Revenue
Bulletins published in the last few years.
- Tax Regs in English to search regulations and the
Internal Revenue Code (under United States Code
(USC)).
- Digital Dispatch and IRS Local News Net
(both located under Tax Info For Business) to receive
our electronic newsletters on hot tax issues and news.
- Small Business Corner (located under Tax
Info For Business) to get information on starting and operating
a small business.
You can also reach us with your computer using File Transfer
Protocol at ftp.irs.gov.
TaxFax Service. Using the phone attached to your fax
machine, you can receive forms and instructions by calling
703-368-9694. Follow the directions from the
prompts. When you order forms, enter the catalog number for the form
you need. The items you request will be faxed to you.
Phone. Many services are available by phone.
- Ordering forms, instructions, and publications.
Call 1-800-829-3676 to order
current and prior year forms, instructions, and publications.
- Asking tax questions. Call the IRS with your tax
questions at 1-800-829-1040.
- TTY/TDD equipment. If you have access to TTY/TDD
equipment, call 1-800-829-4059 to ask tax
questions or to order forms and publications.
- TeleTax topics. Call
1-800-829-4477 to listen to pre-recorded
messages covering various tax topics.
Evaluating the quality of our telephone services. To
ensure that IRS representatives give accurate, courteous, and
professional answers, we evaluate the quality of our telephone
services in several ways.
- A second IRS representative sometimes monitors live
telephone calls. That person only evaluates the IRS assistor and does
not keep a record of any taxpayer's name or tax identification
number.
- We sometimes record telephone calls to evaluate IRS
assistors objectively. We hold these recordings no longer than one
week and use them only to measure the quality of assistance.
- We value our customers' opinions. Throughout this year, we
will be surveying our customers for their opinions on our
service.
Walk-in. You can walk in to many post offices,
libraries, and IRS offices to pick up certain forms, instructions, and
publications. Also, some libraries and IRS offices have:
- An extensive collection of products available to print from
a CD-ROM or photocopy from reproducible proofs.
- The Internal Revenue Code, regulations, Internal Revenue
Bulletins, and Cumulative Bulletins available for research
purposes.
Mail. You can send your order for forms, instructions,
and publications to the Distribution Center nearest to you and receive
a response within 10 workdays after your request is received. Find the
address that applies to your part of the country.
- Western part of U.S.:
Western Area Distribution Center
Rancho Cordova, CA 95743-0001
- Central part of U.S.:
Central Area Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
- Eastern part of U.S. and foreign addresses:
Eastern Area Distribution Center
P.O. Box 85074
Richmond, VA 23261-5074
CD-ROM. You can order IRS Publication 1796, Federal
Tax Products on CD-ROM, and obtain:
- Current tax forms, instructions, and publications.
- Prior-year tax forms, instructions, and publications.
- Popular tax forms which may be filled in electronically,
printed out for submission, and saved for recordkeeping.
- Internal Revenue Bulletins.
The CD-ROM can be purchased from National Technical Information
Service (NTIS) by calling 1-877-233-6767
or on the Internet at www.irs.gov/ cdorders. The
first release is available in mid-December and the final release is
available in late January.
IRS Publication 3207, Small Business Resource Guide, is
an interactive CD-ROM that contains information important to small
businesses. It is available in mid-February. You can get one free copy
by calling 1-800-829-3676.
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