Nonresident Alien Tax Withholding
Foreign persons are generally subject to U.S. tax on U.S. sourced income at a rate of 30%.
As a withholding agent, the University is required to withhold tax (NRA Withholding) on payments for royalties, non-qualified scholarships, fellowships, stipends, honorariums, awards, prizes, personal services and employment income.
A reduced rate, including exemption, may apply if an Internal Revenue Code Section provides for a lower rate (e.g., 14% for scholarships), or if the U.S. has a tax treaty with the foreign person’s country of tax residence.
How do I know if I am exempt from NRA tax withholding?
If you answer yes to any statements below, please click on the Next Steps section:
- Are you are a GU affiliated Non-US citizen, you should provide immigration data to the Tax Department if you answer yes to one or more of the following questions?
- Are you receiving a scholarship payment that exceed the amount of tuition and required fees charged to my student account.
- Are you being paid as an employee (see Tax Treaty Table 2 for Code 18 dependent services, Code 19 for teaching services or Code 20 for studying and training).
- Are you being paid as an independent contractor (see Tax Treaty Table 2 for Code 17 independent services).
- Are you being paid an award, stipend, grant or honorarium.
- Are you receiving a royalty payment from the University and I am a resident of a country the US has a tax treaty (see Tax Treaty Table 1).
- Are you a teacher or trainee who has been present in the U.S. under a “J” or “Q” visa for a portion of 2 of the last 6 calendars year.
- Are you a student temporarily present in the U.S. under an “F,” “J,” “M,” or “Q” visa for a portion of 5 calendars years.
- Has your immigration status has changed (e.g., J-1 extension, H1-B approval, green card, passed the substantial presence test, etc.).
I think I am exempt, what are the next steps?
- Complete the Georgetown University Nonresident Alien Tax Request Form.
- Wait 3-5 business days for an email from email@example.com with the subject: Institution Data Request – NRA Tax Analysis.
- Log into Foreign National Information System (FNIS) with the FNIS username and password provided in the email and enter requested contact and immigration information.
- Wait 3-5 business days for an email from firstname.lastname@example.org for confirmation or instruction for any additional steps. Please note that at this point we may provide additional forms and request copies of various documents (e.g., copy of passport and visa, Form W-8BEN, Form W-4, Form W-9, Form 8233, Form I-20, Form DS-2019).
Please follow all instruction in FNIS and in the emails received.