NONRESIDENT ALIEN TAX POLICY

The University of Alabama
Tuscaloosa, Alabama
June 1, 2001
Table of Contents

I. GENERAL

SECTION 1.1 Scope of Policy

SECTION 1.2 U.S. Source Payment

SECTION 1.3 Definition of Student

SECTION 1.4 Definition of Postdoctoral Fellows and Visiting Scholars

SECTION 1.5 Definition of Nonresident Alien and Resident Alien

SECTION 1.6 Definition of Foreign National

SECTION 1.7 Amendment of Policy

II. CLASSIFICATIONS OF PAYMENTS

SECTION 2.1 Employee Compensation Payments

A. Federal Income Tax

B. State Income Tax

C. FICA Tax

SECTION 2.2 Scholarship/Fellowship Payments

A. Federal Income Tax

B. State Income Tax

C. FICA Tax

SECTION 2.3 Independent Contractor Payments

A. Federal Income Tax

B. State Income Tax

C. FICA Tax

III. FORMS AND PROCEDURES

Immigration - for forms, link here for the US Citizenship and Immigration website

SECTION 3.1 INS Form I-94 Arrival/Departure Record

SECTION 3.2 INS Form I-9 Employment Eligibility Verification

SECTION 3.3 USIA Form IAP-66P Certificate of Eligibility for Exchange Visitor

SECTION 3.4 INS Form I-20P Certificate of Eligibility for Nonimmigrant Student

Tax Identification Numbers - IRS website - Social Security website

SECTION 3.5 Form SS-5 Social Security Administration Application

SECTION 3.6 IRS Form W-7 Application for IRS Individual Taxpayer Identification Number

UA Internal Use

SECTION 3.7 UA Foreign National Information Form

Federal Tax - For specific forms, link here for the IRS website

SECTION 3.9 IRS Form 8233 Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual

SECTION 3.10 IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

SECTION 3.11 IRS Form W-9 Request for Taxpayer Identification Number and Certification

SECTION 3.12 IRS Form W-4 Employee’s Withholding Allowance Certificate

SECTION 3.13 IRS Form 8843 Statement for Exempt Individuals and Individuals with a Medical Condition

SECTION 3.14 IRS Form 8840 Closer Connection Exception Statement

State Tax - For specific forms, link here for the Alabama Department of Revenue

SECITON 3.15 AL DOR Form A-4 Employee’s Withholding Exemption Certificate

SECTION 3.16 AL DOR Form A-4E Employee’s Withholding Exemption Certificate

Year-End Reporting - For specific forms, link here for the IRS website

SECTION 3.17 IRS Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding

SECTION 3.18 IRS Form 1042 Annual withholding Tax Return for U.S. Source Income of Foreign Persons

SECTION 3.19 IRS Form W-2 Wage and Tax Statement

IV. IMPLEMENTATION AND COMPLIANCE RESPONSIBILITIES

SECTION 4.1 UA Departments and Administrative Offices

SECTION 4.2 Nonresident Alien Tax Accountant

A. Tax Analysis

B. Year End Tax Reporting (1042-S)

C. Compliance Program

SECTION 4.3 Capstone International Services (CIS)

SECTION 4.4 Payroll Office

SECTION 4.5 Office of Student Receivables

SECTION 4.6 Tax Manager

APPENDICES

APPENDIX ONE U.S. Tax Residency Tests

APPENDIX TWO Income Tax Treaties in Force

APPENDIX THREE Social Security Totalization Agreements

top

I. GENERAL

SECTION 1.1 – Scope of Policy

Effective as of June 1, 2001, this Nonresident Alien Tax Policy (referred to herein as the “Policy”) applies to “U.S. source payments” disbursed by The University of Alabama, Tuscaloosa (referred to herein as “UA”) to nonresident aliens who are students; employees, including postdoctoral/postgraduate fellows and visiting scholars; scholarship/fellowship recipients; and independent contractors.

Students and employees are not subject to this Policy if they are either U.S. citizens or lawful permanent residents. Resident aliens, for tax purposes, may come under this Policy for treaty benefits.

SECTION 1.2 – U.S. Source Payment

Unlike U.S. citizens and resident aliens who are taxed on their worldwide income, nonresident aliens are only taxed on income they receive from U.S. sources. Nonresident aliens do not have to pay U.S. income tax on income they receive from countries outside the U.S. This income is referred to as “foreign source.” <![endif]>

The Nonresident Alien Tax Accountant (referred to herein as “NRA Tax Accountant”) is responsible for determining whether a payment is a “U.S. source” or “foreign source” payment.

Payments of employee compensation (including cash employee prizes and awards) and payments to independent contractors are generally sourced in the country where the service is performed. <![endif]>

Scholarship/fellowship payments generally are sourced in the country where the payer is located, regardless of the location of an agent who disburses payments for the payer.

SECTION 1.3 – Definition of Student

For purposes of this Policy, a student is an individual who, either at the undergraduate or graduates level, is enrolled in and regularly attending classes and/or registered for research, thesis, or dissertation requirements. The Payroll Office, with the assistance of other UA Department(s) and Administrative Office(s), as necessary, shall be responsible for monitoring the student status of individuals being paid as student employees.

An individual’s student status shall continue during the break between the conclusion of one academic term and the commencement of the immediately following academic term, unless UA’s student record system indicates the individual will neither be enrolled in and regularly attending classes nor registered for research, thesis, or dissertation requirements during the academic term that commences immediately after a break.

SECTION 1.4 – Definition of Postdoctoral Fellows and Visiting Scholars

For purposes of this Policy, postdoctoral fellows are foreign nationals who have completed the course, research, thesis, and/or dissertation requirements for obtaining a postgraduate degree at UA or another educational institution. UA hires these individuals as temporary employees. At the same time, these individuals are gaining more experience and training.

For purposes of this Policy, visiting scholars are foreign nationals who are experienced in their field of study and are hired by UA as temporary employees. They may be classified as Professors, Teachers, Instructors, Researchers, Visiting Scientists, etc.

SECTION 1.5 – Definition of Nonresident Alien and Resident Alien

For purposes of this Policy, a nonresident alien is a person who is not a U.S. citizen and who does NOT meet either the Green Card Test or the Substantial Presence Test (see APPENDIX ONE).

For purposes of this Policy, a resident alien is a person who is not an U.S. citizen and who meets either the Green Card Test or the Substantial Presence Test (see APPENDIX ONE). A resident alien generally is subject to the same tax withholding and payment rules as a U.S. citizen; however, the NRA Tax Accountant is responsible for determining whether the tax withholding and payment rules applicable to a resident alien differ from the rules applicable to a U.S. citizen.

A foreign national who meets the Substantial Presence Test (and does not meet the Green Card Test) may retain his or her nonresident alien status. The individual must demonstrate to the satisfaction of the Internal Revenue Service (referred to herein as “IRS”) that he or she has met the “Closer Connection Test” by filing Form 8840 Closer Connection Exception Statement for Aliens (see SECTION 3.14).

SECTION 1.6 – Definition of Foreign National

For purposes of this Policy, a foreign national is a person who owes his permanent allegiance to a country other than the U.S. This usually means that the person is a citizen of another country. A foreign national is presumed to be a nonresident alien unless he/she meets either the Green Card Test or the Substantial Presence Test.

SECTION 1.7 – Amendment of Policy

Changes in tax laws, the legal interpretation of tax laws, positions taken by the IRS or other tax authorities or in UA procedure may require this Policy to be amended.

top

II. CLASSIFICATIONS OF PAYMENTS

This Policy covers three classes of U.S. source payments to nonresident aliens:

Employee compensation payments,
Scholarship/fellowship payments, and
Independent contractor payments.

SECTION 2.1 – Employee Compensation Payments

Employees are individuals who perform services subject to the direction and control of UA, both as to what shall be done and how it shall be done.

Employee compensation is paid by the Payroll Office to (or on behalf of) an individual who performs services for UA.

Employee compensation may only be paid to a nonresident alien who has been granted an appropriate employment authorization and immigration status by the Immigration and Naturalization Service (referred to herein as “INS”) and who has a valid social security number. The work authorization status of a nonresident alien shall be approved by Capstone International Services (referred to herein as “CIS”).

Payments to postdoctoral fellows and visiting scholars are classified as employee compensation because work (service) is performed in exchange for compensation.

Assistantships, which include graduate student, research and teaching assistantships, are a form of financial assistance provided to students to aid them in pursuing a course of study. Assistantship payments are designated as employee compensation because work (service) is performed in exchange for compensation.

Employee prizes and awards include cash payments to employees based on past accomplishments or activities as an employee, and such cash payments are included in employee compensation.

A. Federal Income Tax

In general, federal income tax shall be withheld from all employee compensation payments made to a nonresident alien, unless the payment is exempt from withholding under federal law, which includes a tax treaty between the U.S. and the nonresident alien’s country of tax residence. For a list of countries with which the U.S. has entered income tax treaty agreements, see APPENDIX TWO.

CAUTION: The fact that an individual’s country of tax residence is listed does not automatically mean that payments to the individual will be exempt from tax. Exemption will depend upon numerous factors, including: the specific provisions of each treaty, the individual’s length of stay in the U.S., the type of payment made, and whether the individual has met with the NRA Tax Accountant to complete the appropriate forms.

Subject to the provisions of applicable income tax treaties, the Payroll Office shall withhold federal income tax at the applicable graduated tax rate from employee compensation payments. Nonresident aliens may claim a personal withholding allowance by completing IRS Form W-4 Employee’s Withholding Allowance Certificate (see SECTION 3.12) and submitting it to the NRA Tax Accountant.

To apply for a withholding exemption on employee compensation based on a tax treaty, a nonresident alien must contact the NRA Tax Accountant to complete IRS Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual (see SECTION 3.9). Tax treaty benefits will not be granted without a valid social security number.

If the individual does not qualify for a tax treaty exemption, the NRA Tax Accountant will make sure the individual is being taxed at the appropriate tax rate.

B. State Income Tax

Nonresident aliens are subject to tax on all income received within, or for services performed in, Alabama.

Subject to applicable withholding exemptions, the Payroll Office shall withhold State of Alabama Income Tax (referred to herein as “State Income Tax”) at the applicable rate from employee compensation. The following rules shall apply with regard to withholding exemptions:

1. All employees must submit either a completed State Income Tax Form A-4 or a completed State Income Tax Form A-4E (see SECTIONS 3.15 and 3.16) to the NRA Tax Accountant, who will forward the form to the Payroll Office.

2. The Alabama Department of Revenue does not currently recognize withholding exemptions based on tax treaties; therefore, State Income Tax withholding cannot be adjusted based on the provisions of such treaties.

C. Federal Insurance Contributions Act (FICA) Tax

FICA tax (the Old-Age, Survivors and Disability Insurance Tax and the Medicare Tax) which is commonly referred to as the “Social Security Tax,” is imposed in equal parts on both the employee and employer with respect to wages paid to individuals working in the U.S. Employment generally means any service, of whatever nature, performed by an employee within the U.S. for an employer, regardless of the citizenship or residence of the employee.

The Payroll Office shall withhold the employee portion of the FICA tax from all payments of employee compensation and pay the corresponding employer portion of the FICA tax. However, a nonresident alien employee and UA may be entitled to withholding/payment exemption(s) from the FICA tax based upon the employee’s student status, employee’s immigration status, a tax treaty, or a “Social Security Totalization Agreement.”

1. FICA Exemption Based Upon Student Status

An employee and UA may be exempt from the employee and employer portions of FICA tax based upon the student status of the employee. The student is exempt from FICA tax under Section 3121(b)(10) of the Internal Revenue Code, if the student works for the school at which he/she is enrolled and regularly attends classes. In order to qualify for this exemption, the student must be enrolled in at least half-time status. Half time is defined as 6 hours for undergraduate and 4.5 hours for graduate school. The Payroll Office monitors student status every time the payroll is ran, and charges FICA tax as appropriate.

2. FICA Exemption Based Upon Immigration Status

An employee and UA may be exempt from the employee and employer portions of FICA tax based upon the employee’s immigration status. To qualify for this exemption, the employee must be temporarily present in the U.S. as a nonresident alien in F-1, J-1, M-1, or Q-1 immigration status, and must perform service in accordance with the primary purpose of their visa. If these criteria are met, the nonresident alien is exempt from FICA tax under Section 3121(b)(19) of the Internal Revenue Code. The NRA Tax Accountant shall inform the Payroll Office not to withhold FICA tax.

The NRA Tax Accountant will apply the Substantial Presence Test (see APPENDIX ONE) to visa holders in accordance with federal regulations, which include the following:

(a) Students

A student who is in F, J, M, or Q immigration status is generally exempt from counting days of presence as a student for purposes of the Substantial Presence Test, provided that the student has not been exempt from counting days of U.S. presence for any part of more than five (5) calendar years due to student or non-student immigration status.

(b) Teachers and Trainees (non-students)

A teacher or trainee, other than a student, who is in J or Q immigration status, is generally exempt from counting days of presence for purposes of the Substantial Presence Test. The teacher or trainee must NOT have been exempt as a teacher, trainee, or student for any part of two (2) of the six (6) preceding calendar years.

Individuals who are in F-2, J-2, or M-2 immigration status are not eligible for FICA exemption under Section 3121(b)(19) because their primary purpose is to be a dependent.

When an employee has met the Substantial Presence Test, the NRA Tax Accountant shall classify him or her as a resident alien for tax purposes and the employee is no longer eligible for exemption from FICA tax according to Section 3121(b)(19). UA is required to withhold FICA tax retroactive to the first day of physical presence in the U.S. in the year the individual became a resident alien. If the employee is also a student, he or she may still qualify for exemption under Section 3121(b)(10).

3. FICA Exemption Based Upon a Tax Treaty

An employee may be exempt from the employee portion of FICA tax based upon a tax treaty. To qualify for this exemption, the employee must complete IRS Form 8233 (see SECTION 3.9) and submit Form 8233 and other necessary documentation to the NRA Tax Accountant. In most cases, no withholding exemption will be available to the employee due to a tax treaty. However, if a withholding exemption is available to the employee, UA shall still pay the employer portion of the FICA tax.

4. FICA Exemption Based Upon a Social Security Totalization Agreement

An employee and UA may be exempt from the employee and employer portions of FICA tax based upon a Social Security Totalization Agreement. To qualify for this exemption, the employee must establish that the social security tax is being paid to his or her country of residence with regard to the income earned in the U.S. The employee must obtain a “coverage certificate” from the social security authorities in his or her country of residence and submit the coverage certificate to the NRA Tax Accountant. The coverage certificate must contain the following:

(a) The employee’s name, address, and taxpayer identification number, date and place of birth, marital status, citizenship, and country of lawful permanent residence;

(b) the employer’s name, address, and taxpayer identification number;

(c) a statement that a Totalization agreement is in effect between the foreign country and the U.S. under which wages received by or paid to the employee by the employer are subject to taxes or contributions under the social security system of the foreign country; and

(d) the date on which the Totalization agreement began to apply and the date, if determined, when it will cease to apply.

Upon receipt of the coverage certificate, the NRA Tax Accountant shall retain the certificate (the certificate is not to be filed with the IRS) and inform the Payroll Office of the application of the Totalization agreement. See APPENDIX THREE for a listing of countries that have Social Security Totalization Agreements.

SECTION 2.2 - Scholarship/Fellowship Payments

A “scholarship” is defined as “an amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or graduate, to aid such individual in pursuing his studies.”

A “fellowship” is defined as “an amount paid or allowed to, or for the benefit of, an individual to aid him in the pursuit of study or research.”

Scholarship/fellowship payments aid the recipient in covering the cost of tuition, fees, books, supplies and/or living expenses while pursuing a course of study or research.

In order for a payment to be classified as a scholarship/fellowship, there must be no requirement that the recipient perform services in order to receive the payment. Furthermore, the payment must not be contingent upon the recipient’s choice of a particular faculty mentor or participation in a specific research, teaching, or service project. The Tax Manager will make the final determination of whether a payment is properly classified as a scholarship/fellowship.

Scholarship/fellowship payments are generally disbursed to (or on behalf of) students through the Office of Student Receivables, as a credit applied to the student’s account. Certain scholarship/fellowship payments may be disbursed through other offices; for example, monthly living expense payments for student athletes or travel research fellowships are disbursed through the Payroll Office, or training grant allowances through Accounts Payable. Each disbursing office is responsible for withholding any required taxes on scholarship/fellowship payments, as determined by the NRA Tax Accountant.

A. Federal Income Tax

“Qualified” scholarship/fellowship payments, as defined by Internal Revenue Code Section 117, are not included in the student’s income for federal income tax purposes and are not subject to federal income tax withholding. For a payment to be considered “qualified,” a student (as permitted by the terms under which the payment is made) must use the payment for:

1. tuition and fees required for enrollment or attendance, or

2. fees, books, supplies, and equipment required for courses of instruction.

NOTE: Student insurance, which is required of all foreign national students at UA, is considered a qualified fee.

Scholarship/fellowship payments paid in excess of qualified scholarships (i.e. room and board, travel, dorm charges, student health and pharmacy charges, Dining Dollars, and monthly stipends for living expenses) are included in the student’s income. Subject to the provisions of applicable income tax treaties, such excess payments are subject to withholding under the following rules:

UA shall withhold federal income tax at a rate of 14%, provided that:

1. the recipient is temporarily present in the U.S.,

2. the recipient is in F, J, M, or Q immigration status, and

3. the recipient must be a “Candidate for a Degree” - present to pursue study, training, or research.

If the student does not meet the above requirements for application of the 14% withholding rate, UA shall withhold federal income tax from the scholarship/fellowship payment at the rate of 30%.

To apply for a withholding exemption on scholarship/fellowship payments based on a tax treaty, a nonresident alien must contact the NRA Tax Accountant to complete IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, (see SECTION 3.10). For a listing of countries with which the U.S. has entered income tax treaty agreements, see APPENDIX TWO.

If the individual does not qualify for a tax treaty exemption, the NRA Tax Accountant will make sure the individual is being taxed at the appropriate tax rate.

B. State Income Tax

State Income Tax shall not be withheld from any scholarship/fellowship payments.

C. FICA Tax

The employee portion of the FICA tax shall not be withheld from scholarship/fellowship payments, and UA shall not pay the employer portion of the FICA tax.

SECTION 2.3 - Independent Contractor Payments

Independent contractor payments are made in exchange for services performed by an individual who does not have an employee-employer relationship with UA. A Request for Independent Contractor Status Form (refer to UA SPENDING POLICY , Section VII) must be submitted in advance to the Tax Manager to obtain approval for payments to independent contractors. These are usually short-term visitors providing guest lectures, symposiums, etc.

Independent contractor payments will only be made to an individual whose immigration status allows the receipt of such payments as a matter of law and who has a valid taxpayer identification number. If necessary, the NRA Tax Accountant will consult with CIS to determine the legality of payment. Following are some examples of the most common visa types used by short-term visitors at UA, and the restrictions applicable to each:

B-1 Visitor for Business (and WB Visa Waiver for Business)

B-2 Visitor for Tourism (and WT Visa Waiver for Tourism)

May receive an honorarium payment for academic activities lasting no more than nine days at a single institution, if the visitor has not accepted such payment from more than five institutions during the previous six months (9-5-6 rule). If these criteria are not met, the visitor can receive expense reimbursements only (original receipts must be provided). Canadians are visa exempt, which means they do not require a visa to enter the U.S. Canadians admitted without documentation are considered to be under B-1 or B-2 status and may receive an honorarium provided that the 9-5-6 rule is met.

Citizens from the following countries may be granted WB or WT visa waiver stamps by simply completing the I-94W form upon entry into the U.S., as long as certain requirements are met. These countries currently are: Andorra, Argentina, Australia, Austria, Belgium, Brunei, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Monaco, the Netherlands, New Zealand, Norway, San Marino, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom.

J-1 Exchange Visitors

Visitors who will exceed the 9-5-6 rule must obtain J-1 status in order to be paid an honorarium or fee. A J-1 visa is authorized for the sponsoring institution only. Therefore, if the individual is in the U.S. on a J-1 visa from another institution, payment from UA can only be made upon receipt of a letter from the sponsoring institution’s “Responsible Officer.” The letter, along with other documentation, must be forwarded to the NRA Tax Accountant to be placed in the individual’s tax file. Obtaining a J-1 visa requires 6 to 8 weeks of advance planning. A J-1 visa requires that UA prepare Form IAP-66 Certificate of Eligibility for Exchange Visitor (see SECTION 3.3) that must be sent to the invitee. The invitee will have to take Form IAP-66 to the Embassy or Consulate to apply for the visa. There is no cost to the individual associated with obtaining this status. CIS will provide assistance to departments needing to obtain J-1 visas for visitors. If these procedures are not followed, the visitor can receive expense reimbursements only (original receipts must be provided).

TN – Trade NAFTA

Individuals from Canada or Mexico that exceed the 9-5-6 rule (and there is not enough time to obtain J-1 status) may obtain TN status in order to be paid an honorarium. The individuals must be in certain professions and there is a cost to the individual.

Following is the procedure for obtaining TN Status:

1. Visitor will need to enter the U.S. through a “Class A” airport, which will have a special section set up in the U.S. customs area to process TN paperwork.

2. Visitor must present:

Proof of citizenship: This may be a short- or long-form birth certificate, passport, or certificate of Canadian or Mexican naturalization.
Original offer letter: This is a letter from UA to the individual which must contain the following information: title, job duties, period of employment, and amount of pay. In describing the title and job duties, avoid the word “training” which could be misinterpreted by INS officials to mean that the visitor is coming to receive training. For example, if the visitor will be leading a workshop, the word “teaching” would be a better choice.
Proof of credentials: This is required to show that the individual qualifies for the professional TN status. Usually the proof consists of a notarized copy of their degree (which must be at least a bachelor’s degree). The degree must be related to the job they will be doing in the U.S.
Payment: A $95 processing fee is required.

3. The visitor should allow an extra 2 ½ to 3 hours at the airport for processing.

4. The visitor will receive an I-94 card with TN stamped on it. On the back of the card, UA will be listed as the employing agent.

5. There is a maximum 12-month period for each TN approval. Therefore, the above process must be repeated each year as needed.

Although the TN status may be quicker to obtain, it is recommended that the individuals obtain J-1 status whenever possible. Therefore, departments should contact CIS as soon as there is intent to invite a short-term visitor.

Once it is determined that a payment can legally be made, the NRA Tax Accountant shall determine the individual’s tax status by performing a tax analysis, and, if needed, shall assist in obtaining an Individual Taxpayer Identification Number (see SECTION 3.6). Refer to departmental responsibilities outlined in SECTION 4.1.

A. Federal Income Tax

In general, federal income tax shall be withheld from all independent contractor payments made to a nonresident alien, unless the payment is exempt from withholding under federal law, which includes a tax treaty between the U.S. and the nonresident alien’s country of tax residence. For a listing of countries with which the U.S. has entered income tax treaty agreements, see APPENDIX TWO.

Subject to the provisions of applicable income tax treaties, UA shall withhold federal income tax from independent contractor payments at the rate of 30%. To apply for a withholding exemption on independent contractor payments based on a tax treaty, a nonresident alien must contact the NRA Tax Accountant to complete IRS Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual (see SECTION 3.9). Tax treaty benefits will not be granted without a valid taxpayer identification number (see SECTIONS 3.5 and 3.6).

If the individual does not qualify for a tax treaty exemption, the NRA Tax Accountant will make sure the individual is being taxed at the appropriate tax rate, which is 30%.

B. State Income Tax

State Income Tax shall not be withheld from any independent contractor payments.

C. FICA Tax

The employee portion of FICA tax shall not be withheld from independent contractor payments, and UA shall not pay the employer portion of the FICA tax.

top

III. FORMS AND PROCEDURES

IMMIGRATION - for forms, link here for the US Citizenship and Immigration website

SECTION 3.1 – INS Form I-94 Arrival/Departure Record

The INS Form I-94 is used to document a foreign national’s entrance date, work authorization status, and period of time admitted to the U.S.

SECTION 3.2 – INS Form I-9 Employment Eligibility Verification

This form is used by the employer to verify an employee’s eligibility to work in the U.S. UA is required to have on file a completed I-9 for all employees, including foreign nationals. The hiring department is responsible for submitting a completed Form I-9, along with copies of supporting documentation, to the Payroll Office.

SECTION 3.3 – USIA Form IAP-66P Certificate of Eligibility for Exchange Visitor

Form IAP-66P is a certificate of eligibility for prospective students, professors, research scholars, short-term scholars, or specialists to apply for a visa to travel to the U.S. It also certifies that the prospective individual has applied for admission and has been admitted to an institution for studies or employment. With this form in hand, the prospective individual can visit any U.S. consulate and apply for a J-1 visa. The certificate also certifies that the prospective student has sufficient funds in readily available format to support him/her self while studying in the U.S. In order to remain in lawful status while in the U.S., among other things, the J-1 individual must maintain a valid Form IAP-66P at all times. The J-1 student also needs to have a valid Form IAP-66P in order to be eligible for on-campus or off-campus employment. There are other categories of the J-1 status, but UA is not authorized to hire anyone who is not in one of the above J-1 categories.

SECTION 3.4 – INS Form I-20P Certificate of Eligibility for Nonimmigrant Student

Form I-20P is a certificate of eligibility for a prospective student to apply for a visa to travel to the U.S. It certifies that the prospective student has applied for admission and has been admitted to an institution for studies. It also certifies that the institution has verified that the prospective student has sufficient funds in readily available format to support him/her self while studying in the U.S. With this form in hand, the prospective student can visit any U.S. consulate and apply for an F-1 visa. In order to remain in lawful status while in the U.S., among other things, the student must maintain a valid INS Form I-20P at all times. The student also needs to have a valid INS Form I-20P in order to be eligible for on-campus or off-campus employment authorization.

TAX IDENTIFICATION NUMBERS - IRS website - Social Security website

SECTION 3.5 – Social Security Administration Form SS-5

A nonresident alien must have a Social Security Number (referred to herein as “SSN”) if he or she is receiving:

1. employee compensation payments,

2. scholarship/fellowship payments, or

3. independent contractor payments. *

The nonresident alien must have a SSN before payment can be made or treaty exemptions can be granted. Applications can be obtained from CIS, the NRA Tax Accountant or downloaded from the Social Security Administration web site: http://www.ssa.gov/online/ss-5.html. The individual will need to take the completed application and the requested original documents to the local Social Security Administration Office, which is located at 1118 Greensboro Avenue, Tuscaloosa, Alabama. The individual must apply in person.

The nonresident alien should receive his/her SSN via mail within 14 days. The individual should immediately take a copy of the card to the NRA Tax Accountant, the Payroll Office and/or the Office of Student Records.

*Nonresident aliens who are not eligible for a SSN must obtain an Individual Taxpayer Identification Number (referred to herein as “ITIN”).

SECTION 3.6 – IRS Form W-7 Application for IRS Individual Taxpayer Identification Number

Nonresident aliens who are not eligible to receive a SSN must apply for an ITIN using IRS Form W-7. This generally applies to independent contractors who are only here for a short period of time. The NRA Tax Accountant will assist the individual with the application process for obtaining an ITIN. The individual will need to apply in person, to the office of the NRA Tax Accountant, with original passport and INS documents. UA must have an ITIN on file, or evidence that the individual has applied for one, before payment can be made or treaty exemptions can be granted. The nonresident alien should receive his/her ITIN via mail within 6 – 8 weeks. To insure that UA gets a copy of the ITIN, it will be mailed to the NRA Tax Accountant’s attention. The NRA Tax Accountant will forward the ITIN to the nonresident alien. This form may be obtained from the NRA Tax Accountant or downloaded from the IRS web-site: www.irs.gov/pub/irs-pdf/fw7.pdf .

UA INTERNAL USE

SECTION 3.7 – UA Foreign National Information Form

This general information form should be completed by the foreign national and taken to the NRA Tax Accountant when the individual has his/her tax analysis done. This form will serve as a back-up document to basic, but very important, information about the foreign national’s U.S. address, foreign address, citizenship, tax residency, current and previous immigration status, primary purpose for visit and dates of entries and exits. This will aid the NRA Tax Accountant in performing the tax analysis as quickly and accurately as possible.

SECTION 3.8 – UA Nonresident Alien Student Tax Status Determination Form

This form is to be completed by the Office of Student Receivables and the NRA Tax Accountant for any nonresident alien student receiving “excess credits” (i.e. scholarship/fellowship credits on the student account in excess of required tuition and fees). The Office of Student Receivables will list the breakdown of the scholarship payment that was applied to the student’s account. The breakdown will consist of the “qualified scholarship” amounts that are exempt under Section 117 of the Internal Revenue Code and the excess amounts that are potentially taxable to the student. The NRA Tax Accountant will then determine if the excess scholarship payment is exempt under a tax treaty or if the student should be taxed at the appropriate tax rate. The NRA Tax Accountant will forward the form back to the Office of Student Receivables to either exempt the scholarship payment from federal taxes or charge the student’s account with any required federal tax withholding. The NRA Tax Accountant will send the student a letter to explain the amount of tax applied to his/her account.

FEDERAL TAX - IRS website - Social Security website

SECTION 3.9 – IRS Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual

If a nonresident alien qualifies for exemption from federal taxes on compensation earned for personal service, he or she must complete IRS Form 8233 and have a valid taxpayer identification number to receive tax treaty benefits. The distribution and review of IRS Form 8233 shall be the responsibility of the NRA Tax Accountant, who shall oversee the accurate completion of this form. The NRA Tax Accountant shall forward the completed form to the IRS within five (5) days of its receipt from the nonresident alien.

This form must be filed for each calendar year (January 1 – December 31) for which a nonresident alien claims income tax treaty benefits. If this form is not completed, no benefits will be granted. Taxes will be withheld at the appropriate rate, NO EXCEPTIONS. UA will not provide any refunds of taxes withheld due to failure of the individual to complete Form 8233. The individual will have to apply for a refund when filing his/her U.S. income tax return.

In the case of a UA employee, the NRA Tax Accountant will forward a copy of the completed Form 8233 to the Payroll Office. In the case of an independent contractor, the NRA Tax Accountant will forward a copy of the completed Form 8233 to Accounts Payable as an attachment to the Miscellaneous Disbursement Voucher (MDV) requesting payment. The NRA Tax Accountant reviews MDVs for nonresident aliens prior to payment being made.

SECTION 3.10 – IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

Form W-8BEN is used by a nonresident alien individual to (1) certify foreign status, (2) claim an income tax treaty exemption for a non-service scholarship/fellowship grant, or (3) claim an income tax treaty exemption or tax rate reduction for passive income (e.g. royalties, dividends, interest, or certain portfolio interest). The distribution and review of this form shall be the responsibility of the NRA Tax Accountant. A completed Form W-8BEN is not to be filed with the IRS; the NRA Tax Accountant shall retain it and forward a copy to the appropriate disbursing office. Generally, a Form W-8BEN is valid for a period of three years, but UA requires the individual to have an updated tax analysis each year.

If an individual is otherwise eligible for treaty benefits, but fails to complete Form W-8BEN or does not have a valid taxpayer identification number, UA will withhold federal taxes at the applicable tax rate, NO EXCEPTIONS. UA will not provide any refunds of taxes withheld due to failure of the individual to complete Form W-8BEN. The individual will have to apply for a refund when filing his/her U.S. income tax return.

SECTION 3.11 – IRS Form W-9 Request for Taxpayer Identification Number and Certification

IRS Form W-9 has multiple purposes. It is used 1) to obtain a taxpayer identification number, 2) as a certificate of U.S. citizen or resident aliens status, and 3) to claim exemption from withholding under a treaty for resident aliens.

Nonresident alien students and trainees from Jamaica, Barbados and Hungary may elect to be treated as resident aliens for tax purposes by completing Form W-9 even if they do not meet the Substantial Presence Test as described in APPENDIX ONE. The purpose of this election is to permit the student/trainee to qualify for additional tax benefits available to U.S. residents.

Foreign nationals who are resident aliens because they passed the Substantial Presence Test may still qualify for treaty benefits under the Savings Clause of their country’s treaty. The NRA Tax Accountant shall inform the individual at the time of the tax analysis. If the individual is still eligible for treaty benefits, IRS Form W-9 must be completed with special notations. This form must be completed each calendar year (January 1 – December 31) for which the resident alien claims income tax treaty benefits. A completed Form W-9 is not to be filed with the IRS; the NRA Tax Accountant shall retain it and forward a copy to the Payroll Office.

SECTION 3.12 – IRS Form W-4 Employee’s Withholding Allowance Certificate

Nonresident aliens who receive employee compensation payments must submit a completed Form W-4 to the NRA Tax Accountant. Because of the restrictions on a nonresident alien’s filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction, the IRS Form W-4 shall be completed in accordance with the following rules:

1. Regardless of actual marital status, “Single” must be checked on Line 3.

2. Only one (1) withholding exemption may be claimed on Line 5, unless an applicable tax treaty provides otherwise.

3. An additional amount of $15.30 biweekly or $33.10 monthly shall be deducted on Line 6.

4. “Exempt” withholding status may not be claimed on Line 7.

If the foreign national does not complete IRS Form W-4, or Form W-4 is completed incorrectly, federal income tax must be withheld from the employee’s compensation on the basis of Single with no exemptions (“Single and 0”).

The distribution and review of this form shall be the responsibility of the NRA Tax Accountant. The NRA Tax Accountant will forward the completed Form W-4 to the Payroll Office. A completed Form W-4 generally is effective until a new Form W-4 is submitted to the Payroll Office.

SECTION 3.13 – IRS Form 8843 Statement for Exempt Individuals and Individuals With a Medical Condition

Nonresident aliens who are present in the U.S. under an F, J, M, or Q immigration status are entitled to exclude days of U.S. presence for purposes of the Substantial Presence Test (see APPENDIX ONE). They must complete Form 8843 and submit it along with their U.S. income tax return to the IRS. Foreign nationals who were unable to leave the U.S. because of a medical condition or medical problem must also complete IRS Form 8843. The instructions to IRS Form 8843 provide guidance on retaining nonresident alien status. This form may be obtained from the NRA Tax Accountant. It is the nonresident alien’s responsibility to file this form with the IRS.

SECTION 3.14 – IRS Form 8840 Closer Connection Exception Statement for Aliens

IRS Form 8840 must be completed by foreign nationals who have passed the Substantial Presence Test (see APPENDIX ONE) and are considered resident aliens for tax purposes, but want to be treated as nonresident aliens. The individual must satisfy to the IRS that they have a closer connection to their country of tax residence. This form must be filed with the IRS along with the individual’s income tax return. This form may be obtained from the NRA Tax Accountant. It is the nonresident alien’s responsibility to file this form with the IRS.

STATE TAX - link here for the Alabama Department of Revenue

SECTION 3.15 – Form A-4 Employee’s Withholding Exemption Certificate (Alabama Department of Revenue)

Form A-4 is used to claim personal exemption(s) for State Income Tax withholding purposes. If a completed Form A-4 cannot be obtained by the Payroll Office, State Income Tax must be withheld from employee compensation on the basis of no exemptions (“Single and 0”). A completed Form A-4 generally is effective until a new or amended Form A-4 is submitted to the Payroll Office. IRS Form W-4 cannot be used in place of Form A-4. The distribution and review of this form shall be the responsibility of the NRA Tax Accountant.

SECTION 3.16 – Form A-4E Employee’s Withholding Exemption Certificate (Alabama Department of Revenue)

Form A-4E is used to claim complete exemption from State Income Tax. To qualify, the employee must:

1. be a full-time student,

2. be engaged in temporary employment,

3. expect to earn less than $1,800.00 during the year, and

4. expect to owe no State Income Tax for the year.

The student must submit a completed Form A-4E (instead of Form A-4) to the NRA Tax Accountant. The distribution and review of this form shall be the responsibility of the NRA Tax Accountant.

YEAR-END REPORTING - IRS website - Social Security website

SECTION 3.17 – IRS Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding

IRS Form 1042-S is used to report nonresident alien scholarship/fellowship payments, employee compensation payments that are exempt from federal taxes under an income tax treaty and independent contractor payments. To the extent that all or a portion of an employee compensation payment is not covered by a tax treaty and is subject to federal income tax withholding pursuant to IRS withholding tables, an IRS Form W-2 shall be used to report such payment. The NRA Tax Accountant is responsible for preparing IRS Form 1042-S with respect to all payments to nonresident aliens. The NRA Tax Accountant shall also be responsible for electronically filing the 1042-S with the IRS. The Payroll Office shall be responsible for mailing the 1042-S statements to the nonresident aliens by March 15th of the current year for the preceding tax year (e.g. March 15, 2003 for 2002 tax year).

SECTION 3.18 – IRS Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

IRS Form 1042 is used to report tax withheld on certain income of nonresident aliens. Every U.S. withholding agent who receives, controls, has custody of, disposes of, or pays any fixed or determinable annual or periodic income must file an annual return for the preceding calendar year. The Payroll Office shall be responsible for filing this form with the IRS by March 15th of the current year for the preceding tax year (e.g. March 15, 2003 for 2002 tax year).

SECTION 3.19 – IRS Form W-2 Wage and Tax Statement

IRS Form W-2 is used to report taxable compensation earned by an individual. The Payroll Office is responsible for producing these forms and mailing them to the employee by January 31st of the current year for the preceding tax year (e.g. January 31, 2003 for 2002 tax year).

top

IV. IMPLEMENTATION AND COMPLIANCE RESPONSIBILITIES

SECTION 4.1 – UA Departments and Administrative Offices

UA shall comply with federal and state tax laws, as well as immigration laws, according to the procedures contained in this Policy. Tax withholding and payments are an essential part of UA’s compliance effort, and UA shall ensure that payments made to nonresident aliens are properly reported and that taxes are remitted to the appropriate government agencies.

For UA to comply with the requirements of federal and state tax laws, as well as immigration laws, each Department and Administrative Office MUST share the responsibility for compliance. A single Department or Administrative Office cannot do all that is required to maintain compliance; therefore, a coordinated effort is essential.

Departments hosting nonresident aliens will generally be aware of a nonresident alien’s arrival date (in some cases the arrival date is known far in advance of the actual arrival). To ensure that a nonresident alien may receive prompt payment, Departments are responsible for the following:

A. Must immediately notify the NRA Tax Accountant upon becoming aware that a foreign national will be seeking payment of any kind from UA. The NRA Tax Accountant will determine the individual’s tax status and, if necessary, will consult with CIS to determine if the individual can be paid based on the individual’s immigration status.

B. Must provide a clear description of the reason for payment.

C. For independent contractor expense reimbursements (where no fee is paid): must submit original expense receipts with the MDV.

D. For independent contractor fee/honoraria payments: must follow standard procedures for Independent Contractor Status Forms and Professional Service Agreements as detailed in UA SPENDING POLICY , Section VII.

E. Must provide a SSN or an ITIN, if known, on a Request for Personnel Action (PA) form or a Miscellaneous Disbursement Voucher (MDV) requesting that payment be made to a nonresident alien. An individual should not be allowed to begin work until he/she has obtained a SSN/ITIN or provided evidence that he/she has applied for one. (NRA Tax Accountant shall assist the independent contractor in obtaining an ITIN.) Refer to SECTIONS 3.5 and 3.6.

NOTE: This requirement does not apply to payments that are “expense reimbursement only” with original receipts.

SECTION 4.2 – Nonresident Alien Tax Accountant

The NRA Tax Accountant is designated as the person responsible for coordinating UA’s effort to comply with tax laws applicable to foreign nationals. The NRA Tax Accountant shall carry out the following responsibilities:

A. Tax Analysis

The NRA Tax Accountant shall perform a tax analysis on each foreign national individual receiving payment from UA and forward information to the Payroll Office, Office of Student Receivables, or Accounts Payable, as appropriate.

The individual must go to the NRA Tax Accountant’s office and have a tax analysis done. Tax analysis will be done by appointment only. The individual must take the following documents:

Passport (including visa page and I-94 card)
Immigration paper IAP-66P or I-20P (see SECTIONS 3.3 and 3.4)
Social Security Card*
Foreign National Information Form, if completed in advance (see SECTION 3.7)

* Each foreign national must apply for a SSN or ITIN as soon as possible upon arrival. Refer to SECTIONS 3.5 and 3.6 for a description of forms and procedures.

The tax analysis consists of the following components:

1. U.S. Tax Residency Test (see APPENDIX ONE)

The NRA Tax Accountant, in accordance with the requirements of the “Green Card Test” and the “Substantial Presence Test,” shall evaluate each foreign national. The NRA Tax Accountant shall:

a. Inform the Payroll Office, Office of Student Receivables, and Accounts Payable, as appropriate, whether a foreign national who receives employee compensation payments, scholarship/fellowship payments, or independent contractor payments is a nonresident alien or resident alien.

b. Promptly report to the aforementioned offices any changes in the nonresident status of a foreign national who receives employee compensation payments, scholarship/fellowship payments, or independent contractor payments.

c. Inform the Payroll Office, Office of Student Receivables, and Accounts Payable of those tax withholding and payment rules that apply to each resident alien that would be inapplicable to an U.S. citizen (i.e., when a tax treaty applies to a resident alien).

2. Income Tax Treaties

The U.S. is a party to income tax treaties with a number of countries. The NRA Tax Accountant is responsible for reviewing and determining the application of income tax treaties currently in force, obtaining information regarding new treaties, monitoring the expiration or amendment of treaties and maintaining the current list of treaty countries attached hereto (see APPENDIX TWO).

3. Immigration Status

The NRA Tax Accountant will use the individual’s current visa status, as well as previous visas held, in determining eligibility of treaty benefits. It is very important that the individual bring all the requested documents to facilitate an accurate tax analysis.

The NRA Tax Accountant shall be responsible for entering all treaty exemptions, visa information, entry date, country of citizenship, and all applicable federal and state withholding tax rates into the payroll system. This information will be entered at the time the analysis is completed.

B. Year End Tax Reporting (1042-S)

The NRA Tax Accountant will coordinate the annual 1042-S reporting to individuals and IRS. This process involves ensuring that information is compiled accurately from all payment systems and reported properly, as well as responding to inquiries from the IRS or the nonresident alien individuals concerning Form 1042-S.

C. Compliance Program

In order to facilitate University-wide compliance with this Policy, the NRA Tax Accountant shall be responsible for the following:

1. Providing training and assistance to departments as needed.

2. Notifying foreign nationals about tax analysis requirements and other foreign national tax related issues.

3. Updating this Policy and notifying departments of any change in procedures that may occur.

The NRA Tax Accountant may be contacted at the following address and telephone number:

Nonresident Alien Tax Accountant

Financial Accounting and Reporting

301 Rose Administration Building

Box 870136

Tuscaloosa, Alabama 35487-0136

(205) 348-8865

(205) 348-7282 fax

SECTION 4.3 – Capstone International Services (CIS)

CIS is designated as the office responsible for coordinating UA’s effort to comply with immigration laws applicable to foreign nationals. CIS shall carry out the following responsibilities:

A. Assist departments in obtaining the appropriate visa status for visitors, employees, and students.

B. Refer all student foreign nationals to the NRA Tax Accountant for tax analysis.

C. Assist the NRA Tax Accountant in getting information to the foreign nationals.

D. Coordinate orientation for foreign national students.

E. Provide guidance and assistance to the foreign national students regarding immigration issues.

F. Approve work authorization status of foreign nationals.

CIS may be contacted at the following address and telephone number:

Capstone International Services

105 B.B. Comer Hall

Box 870254

Tuscaloosa, Alabama 35487-0254

(205) 348-5402

(205) 348-5406 fax

SECTION 4.4 – Payroll Office

The Payroll Office shall be responsible for the following duties:

A. Reporting and transmission of all tax withholdings and tax payments to the appropriate federal and state authorities.

B. Monitoring the student enrollment status on all student employees, in order to either grant or deny FICA exemption based on student status.

C. Entering into the payroll system all FICA information for foreign national employees.

D. Providing the NRA Tax Accountant with monthly reports of individuals with invalid social security numbers.

E. Providing periodic reports that reflect nonresident aliens receiving payments through payroll.

F. Forwarding a copy of all Personnel Action Forms for nonresident aliens to the NRA Tax Accountant.

G. Providing year-end reporting information on nonresident aliens to the NRA Tax Accountant to prepare 1042-S statements.

H. Mailing the 1042-S statements to the nonresident aliens.

I. Preparing and filing IRS Form 1042.

The Payroll Office may be contacted at the following address and telephone number:

Payroll Office

303 Rose Administration Building

Box 870128

Tuscaloosa, Alabama 35487-0128

(205) 348-5221

(205) 348-2182 fax

SECTION 4.5 – Office of Student Receivables

The Office of Student Receivables shall be responsible for:

A. Producing the “excess credit” report to identify students receiving scholarship/fellowship credits on their student accounts that are in excess of qualified amounts (see SECTION 2.2). This report should be run along with the student refund program at the beginning of each academic term and every 14 days throughout the term to pick up any changes on student accounts.

B. Charging the student accounts with the federal tax withholding, as directed by the NRA Tax Accountant. This transaction places the tax into a UA liability account used by the Payroll Office to make the federal tax deposit.

C. Producing the “nonresident alien withholding tax” report and forward to the Payroll Office. This report will be used by the Payroll Office to reconcile the amount of federal tax that was placed into the liability account to be deposited with the next federal tax deposit.

The Office of Student Receivables may be contacted at the following address and telephone number:

Office of Student Receivables

105 Student Service Center

Box 870120

Tuscaloosa, Alabama 35487-0120

(205) 348-5350

SECTION 4.6 – Tax Manager

The Tax Manager shall carry out the following responsibilities:

A. Make final determination when questions arise as to the proper classification of payments (e.g. scholarship/fellowship, employee compensation, or independent contractor fees).

B. Approve Request for Independent Contractor Status for departments wishing to pay professional service fees to individuals.

C. Review UA policies and procedures to ensure compliance with federal tax law.

D. Oversee the coordination of efforts between the various administrative offices to insure adherence to UA policies and procedures.

E. Provide guidance and assistance to NRA Tax Accountant as needed.

The Tax Manager may be contacted at the following address and telephone number:

Tax Manager

Financial Accounting and Reporting

301 Rose Administration Building

Box 870136

Tuscaloosa, Alabama 35487-0136

(205) 348-2963

(205) 348-7282

top

APPENDIX ONE

U.S. Tax Residency Tests

Green Card Test

A foreign national shall be treated as an U.S. resident alien for tax purposes if he or she is a lawful permanent resident at any time during a calendar year. U.S. resident status continues until the permanent residency status is rescinded or judicially determined to have been abandoned. The foreign national shall be deemed to have obtained this status if he or she has been:

1. granted lawful permanent resident status and

2. issued or will receive an alien registration card (also known as a “green card”) by the Immigration and Naturalization Service.

Substantial Presence Test

A foreign national satisfies the substantial presence test if he or she is physically present in the U.S. for at least:

1. 31 days during the current calendar year and

2. 183 days during the three-year period that includes the current year and the two years preceding the current year.

The foreign national must satisfy both parts of the test.

The 31-day test:

1. Count the days in the current year the foreign national has been physically present in the U.S.

2. If the number totals 31 or more, the first part of the Substantial Presence Test is satisfied.

The 183-day test:

1. Count all days the foreign national was present in the U.S. during the current year,

2. Count one-third of the days the individual was present during the first preceding year, and

3. Count one-sixth of the days the individual was present during the second preceding year.

4. If the number totals 183 or more, the second part of the Substantial Presence Test is satisfied.

The Substantial Presence Test must be applied each year, always taking into account the current year (the year being tested) and the two preceding years.

The NRA Tax Accountant will perform the Substantial Presence Test as part of the tax analysis.

NOTE: When a foreign national satisfies the Substantial Presence Test during a year, he or she is retroactively classified as a resident alien as of the first day of physical presence in the U.S. of such year.

Provided that a number of requirements are met, an individual may elect to be treated as a U.S. resident for the calendar year that immediately precedes the calendar year during which the individual meets the Substantial Presence Test. Additional information regarding this election may be obtained from the NRA Tax Accountant.

top

APPENDIX TWO

Income Tax Treaties in Force

As of January 1, 2002

Armenia	Latvia
Australia	Lithuania
Austria	Luxembourg
Azerbaijan	Mexico
Barbados	Moldova
Belarus	Morocco
Belgium	Netherlands
Canada	New Zealand
China, People’s Republic of	Norway
Cyprus	Pakistan
Czech Republic	Philippines
Denmark	Poland
Egypt	Portugal
Estonia	Romania
Finland	Russia
France	Slovak Republic
Georgia	Slovenia
Germany	South Africa
Greece	Spain
Hungary	Sweden
Iceland	Switzerland
India	Tajikistan
Indonesia	Thailand
Ireland	Trinidad and Tobago
Israel	Tunisia
Italy	Turkey
Jamaica	Turkmenistan
Japan	Ukraine
Kazakstan	United Kingdom
Korea, Republic of South	Uzbekistan
Kyrgystan	Venezuela

top

APPENDIX THREE

Social Security Totalization Agreements in Force

Austria	Luxembourg
Belgium	Netherlands
Canada	Norway
Finland	Portugal
France	Spain
Germany	Sweden
Greece	Switzerland
Ireland	United Kingdom
Italy

top

Back to Tax Issues Page