Treaty Treaty Foreign Students

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Tax Guide, Foreign Nationals
Tax Treaties Benefits for Foreign Students Studying in the USA

Download a Worksheet for Form 8843 for students, trainees and teachers

Tax Treaty Benefits for Student Compensation

Tax Exempt Compensation:
The tax treaties generally specify that the tax exempt compensation is for "personal services" or "dependent personal services" performed in the United States. Dependent personal services are generally wages/salaries as a employee. If the treaty only uses the term "personal services" then contract work would generally also fall into this category (independent personal services/self employment income). Earnings above this figure are taxable.

Maximum Presence in USA (Student): Many treaties specify a limit to claim benefit of the treaty from when the student first arrived in the USA.

Refer to the tax treaty for any additional requirements.

The information below may differ for teachers, apprentices or business trainees. See treaty for clarification.

Refer to IRS Publication 901, pages 19 to 27. See also United States Tax Treaties - A to Z.

Country of Residence	Maximum Presence in USA (Student)	Tax Exempt Compensation*	Treaty Article
Bangladesh	No Limit	$8,000	21(2)
Belgium	No Limit	$9,000	19(1)(b)
Bulgaria	No Limit	$9,000	19(1)(b)
China, People’s Republic	No Limit	$5,000	20(c)
Cyprus	5 years	$2,000	21(1)
Czech Republic	5 years	$5,000	21(1)
Egypt	5 years	$3,000	23(1)
Estonia	5 years	$5,000	20(1)
France	5 years	$5,000	21(1)
Germany	4 years	$9,000	20(4)
Iceland	5 years	$9,000	19(1)
Indonesia	5 years	$2,000	19(1)
Israel	5 years	$3,000	24(1)
Korea, South	5 years	$2,000	21(1)
Latvia	5 years	$5,000	20(1)
Lithuania	5 years	$5,000	20(1)
Malta	No Limit	$9,000	20(2)
Morocco	5 years	$2,000	18
Netherlands	No Limit	$2,000	22(1)
Norway	5 years	$2,000	16(1)
Pakistan	No Limit	$5,000	XIII(1)(ii)
Philippines	5 years	$3,000	22(1)
Poland	5 years	$2,000	18(1)
Portugal	5 years	$5,000	23(1)
Romania	5 years	$2,000	20(1)
Slovak Republic	5 years	$5,000	21(1)
Slovenia	5 years	$5,000	20(1)
Spain	5 years	$5,000	22(1)
Thailand	5 years	$3,000	22(1)
Trinidad and Tobago	5 years	$2,000	19(1)
Tunisia	5 years	$4,000	20
Venezuela	5 years	$5,000	21(1)

Examples of treaty articles:

China: ARTICLE 20 (Students and Trainees) A student, business apprentice or trainee who is, or was immediately before visiting a Contracting State [USA], a resident of the other Contracting State [China] and who is present in the first- mentioned Contracting State [USA] solely for the purpose of his education, training or obtaining special technical experience shall be exempt from tax in that Contracting State [USA] with respect to: (a) payments received from abroad for the purpose of his maintenance, education, study, research or training; (b) grants or awards from a government, scientific, educational or other tax-exempt organization; and (c) income from personal services performed in that Contracting State [USA] in an amount not in excess of 5,000 United States dollars or its equivalent in Chinese yuan for any taxable year. The benefits provided under this Article shall extend only for such period of time as is reasonably necessary to complete the education or training.

Germany: ARTICLE XI Article 20 (Visiting Professors and Teachers; Students and Trainees), as revised by 2006 Protocol. 4. A student or business apprentice within the meaning of paragraph 2, or a recipient of a grant, allowance, or award within the meaning of paragraph 3, who is present in a Contracting State [USA] for a period not exceeding four years shall not be taxed in that State [USA] on any income from dependent personal services that is not in excess of $9,000 (nine thousand United States dollars) or its equivalent in Deutsche mark per taxable year, provided that such services are performed for the purpose of supplementing funds available otherwise for maintenance, education, or training

Pakistan: ARTICLE XIII (Students or Trainees) (1) A resident of one of the contracting States [Pakistan], who is temporarily present in the other contracting State [USA] solely (a) as a student at a recognized university, college or school in such other State [USA], or (b) as the recipient of a grant, allowance or award for the primary purpose of study or research from a religious, charitable, scientific or educational organization of the former State [Pakistan] shall be exempted from tax by such other State [USA] (i) on all remittances from abroad for the purposes of his maintenance, education or training, and (ii) with respect to an amount not in excess of 5,000 United States dollars for any taxable year, representing compensation for personal services.