U.S. Tax Information For Non-United States Citizens/Non-U.S. Permanent Resident Aliens

For Information Only

Why Am I Required to Provide Information in GLACIER?  The Internal Revenue Service (“IRS”), the U.S. government tax authority, has issued strict regulations regarding the taxation and reporting of payments made to non-United States citizens.  As a result, payments made to you may be subject to U.S. income tax and reporting. 

Why Is My Tax Status Important?  To comply with the U.S. tax laws, your U.S. Tax Residency Status must be determined.  The Substantial Presence Test determines whether an individual is a Nonresident Alien or Resident Alien for U.S. tax withholding and reporting.  GLACIER will calculate your U.S. Residency Status for Tax Purposes based on the information provided by you.  

What is the Difference between a Nonresident Alien and Resident Alien?  If you are a Nonresident Alien for Tax Purposes, you are subject to special tax withholding and reporting regulations; if you are a Resident Alien for Tax Purposes, you are taxed in the same manner as a U.S. Citizen.

How Long Will I Be a Nonresident Alien?  Your Residency Status Change Date is the day on which your U.S. Residency Status for Tax Purposes will change, generally from Nonresident Alien for Tax Purposes to Resident Alien for Tax Purposes.  The U.S. tax system is based on a calendar year period (January 1 – December 31).  In most cases, when your U.S. Residency Status for Tax Purposes changes, you will become a Resident Alien for Tax Purposes retroactive to the first day of the calendar year during which your status changed; this day is called the Residency Status Start Date.

How Will I Be Taxed on Payments From U.S. Sources?  As a Nonresident Alien for Tax Purposes, U.S. tax law requires that you be taxed in the following manner:

• If you are an employee and receive Dependent Compensation (salary or wages), you are generally required to complete Form W-4 as “Single”, regardless of your actual marital status.
• If you receive a Scholarship or Fellowship (for which NO services are required), your scholarship or fellowship may consist of Nontaxable items (Tuition, Book Allowance, and Required Registration Fees) or Taxable items (including, but not limited to, Room and Board, Stipend, Living Allowance, Travel Payment/Reimbursement).  If you are present in the U.S. under an F, J, M, or Q immigration status, the applicable rate of tax withholding is 14 percent; if you are present in the U.S. under any other immigration status, the applicable rate of tax withholding is 30 percent. 
• If you receive an Honorarium, Guest Speaker Fee, Consultant Fees, Royalty, or any other type of income, the applicable rate of tax withholding is 30 percent.

Can I Be Exempt From Tax Withholding? The U.S. maintains income tax treaties with approximately 68 countries.  Certain taxable payments made to you may be exempt from U.S. tax based on an income tax treaty entered into between the U.S. and your country of tax residence.  The existence of a tax treaty does not automatically ensure an exemption from tax withholding; rather, you must satisfy the requirements for the exemption set forth in the tax treaty and provide all applicable forms and documents to your Institution’s GLACIER Administrator.  If you qualify for a tax treaty exemption, you must complete and submit Form W-8BEN (for all non-service scholarships and fellowships, or royalty payments) and/or Form 8233 (for all compensation or payments for services).

What If I Do Not Submit My Forms and Documents?  If you do not complete the information in GLACIER and/or submit the required forms and documents in a timely fashion, the maximum amount of tax will be withheld from all payments made to you.  For instructions of how to submit your forms and documents, please refer to the instruction page generated with your forms; DO NOT send your forms to the GLACIER Support Center. 

Where Can I Get More Information? If you have additional questions about why you were asked to complete GLACIER, please contact your Institution’s GLACIER Administrator or the person at your institution who asked you to complete GLACIER.  If you have questions about GLACIER or the U.S. tax system, please contact the GLACIER Support Center. 

© Arctic International LLC; All Rights Reserved.  This document is for use in connection with GLACIER Online Tax Compliance System.