Guide to Global Payroll Management - 2020 - D-171

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Appendix D--Federal Forms and Instructions

Line 4

Your permanent residence address is the
address in the country where you claim to
be a resident for purposes of that country's
income tax. If you are completing Form
8233 to claim a tax treaty withholding
exemption, you must determine your
residency in the manner required by the
treaty. Do not show the address of a
financial institution, a post office box, or an
address used solely for mailing purposes.
If you are an individual who does not have
a tax residence in any country, your
permanent residence is where you
normally reside.
Most tax treaties that provide for a tax
treaty withholding exemption for students,
trainees, teachers, or researchers require
that the recipient be a resident of the
treaty country at the time of, or
immediately before, entry into the United
States. Thus, in most cases, a student or
researcher can claim the withholding
exemption even if he or she no longer has
a permanent address in the treaty country
after entry into the United States. If this is
the case, you can provide a U.S. address
on line 4 and still be eligible for the
withholding exemption if all other
conditions required by the tax treaty are
met. You also must identify on line 12a
and/or line 13b the tax treaty country of
which you were a resident at the time of,
or immediately before, your entry into the
United States.

Line 6

Enter your U.S. visa type. For example,
foreign students are usually granted an
"F-1" visa. Foreign professors, teachers,
or researchers are usually granted a "J-1"
visa. Business/vocational trainees are
usually granted an "M-1" visa; however,
some persons granted a "J-1" visa also
may be considered business/vocational
trainees (for example, a person admitted
to complete a postgraduate residency in
medicine).
If you do not have, or do not need, a
visa, write "None."

Spouses and dependents
admitted on secondary visas (for
CAUTION example, "F-2," "J-2," "H-4," and
"O-3" visas) usually are not eligible to
claim the same treaty benefits as the
primary visa holder.

Line 8

In most cases, you must enter your date of
entry into the United States that relates to
your current nonimmigrant status. For
example, enter the date of arrival shown
on your current Immigration Form I-94,
Arrival-Departure Record.

Exception. If you are claiming a tax treaty
benefit that is determined by reference to
more than one date of arrival, enter the

earlier date of arrival. For example, you
are currently claiming treaty benefits (as a
teacher or a researcher) under article 15
of the tax treaty between the United States
and Norway. You previously claimed
treaty benefits (as a student) under article
16(1) of that treaty. Under article 16(4) of
that treaty, the combination of exemptions
under articles 15 and 16(1) cannot extend
beyond 5 tax years from the date you
entered the United States. If article 16(4)
of that treaty applies, enter on line 8 the
date you entered the United States as a
student.

Line 9a

Enter your current nonimmigrant status.
For example, enter your current
nonimmigrant status shown on your
current Immigration Form I-94.

Line 9b

Enter the date your current nonimmigrant
status expires. For example, you can enter
the date of expiration shown on your
current Immigration Form I-94. Enter "DS"
on line 9b if the date of expiration is based
on "duration of status."

Line 10

Nonresident alien students, trainees,
professors/teachers, and researchers
using Form 8233 to claim a tax treaty
withholding exemption for compensation
for personal services must attach to Form
8233 a statement. The format and
contents of the required statements are
shown in Appendix A and Appendix B in
Pub. 519.

Part II

Line 11a

For compensation for independent
personal services, examples of
acceptable descriptions to enter on this
line include: "consulting contract to design
software" or "give three lectures at XYZ
University."

Line 11b

Enter the total amount of compensation for
personal services you will receive from
this withholding agent during the tax year.
Enter an estimated amount if you do not
know the exact amount.

Line 12a

Enter the specific treaty on which you are
basing your claim for exemption from
withholding (for example, "U.S.-Germany
tax treaty" or "U.S.-Belgium tax treaty").

Line 12b

Enter the specific article of the treaty
identified on line 12a on which you are
basing your claim for exemption from
withholding (for example, "Article 14(2)" or
"Article 7 (business profits)").
If you are a resident of a country that
has a services permanent establishment
provision in the treaty (for example, Article
5(9) of the United States-Canada treaty)
and you are claiming to be exempt from
withholding because you are not
performing services for more than the
specified period under that provision,
enter that treaty provision.

Line 12c

If all income received for the services
performed to which this Form 8233
applies is exempt, write "All." If only part is
exempt, enter the exact dollar amount that
is exempt from withholding.

Line 12d

If you are claiming a benefit under either
the income from employment/dependent
personal services article or the income
from independent services/business
profits article of the treaty, you must be a
resident of the treaty country. However, if
you are claiming a benefit under the
student/trainee or teacher/researcher
article of a treaty, you generally only need
to have been a resident of the treaty
country at the time of, or immediately
before, your entry into the United States.

For compensation for dependent
personal services, acceptable
descriptions to enter on this line include
the following examples.
* A nonresident alien student can enter
"part-time library assistant," "part-time
restaurant worker," or "teaching one
chemistry course per semester to
undergraduate students."
* A nonresident alien professor or
teacher can enter "teaching at ABC
University."
* A nonresident alien researcher can
enter "research at ABC University's school
for liquid crystal research."
* A nonresident alien business/vocational
trainee can enter "neurosurgical residency
at ABC Hospital" or "one-year internship in
hydraulic engineering at XYZ
Corporation."

Enter the specific article of the treaty
identified on line 13b on which you are
basing your claim for exemption from
withholding (for example, "Article 20(3)").

-4-

Instructions for Form 8233 (Rev. 09-2018)

Line 13b

Enter the specific treaty on which you are
basing your claim for exemption from
withholding (for example, "U.S.-Germany
tax treaty").

Line 13c

Line 14

Provide sufficient facts to justify the
exemption from withholding claimed on
line 12 and/or line 13. Be sure you provide
enough details to allow the IRS to
determine the tax treaty benefit you are
claiming.

D-171

Guide to Global Payroll Management - 2020

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