Tax Treaties

Income tax treaties between the United States and foreign countries typically provide for either a reduction in the statutory rate of tax or an exemption from tax for certain types of income received by citizens and/or residents of the contracting countries.

Many foreign countries withhold tax at the source on income flowing out of such country. If the statutory withholding rate exceeds the treaty rate of tax, one of the following methods may be used to adjust for the treaty rate of tax.

The foreign country may automatically reduce the withholding rate to the treaty rate of tax in the case of income of recipients who have evidence of United States residency; or

The foreign country may withhold income taxes at its statutory rates and require recipients to recover taxes paid more than the reduced treaty rate by filing claims for refund which include evidence that the recipient is a resident of the United States and entitled to the treaty benefits.

The following chart is a list of the most current treaty countries. Use the corresponding country codes when entering the Form 8802, certification application, on the United States Residency Certification (USRC) Database:

Country

Country's Codes

Armenia (U.S.S.R. Treaty)

AM

Australia

AS

Austria

AU

Azerbaijan (U.S.S.R. Treaty)

AJ

Bangladesh

BG

Barbados

BB

Belarus (U.S.S.R. Treaty)

BO

Belgium

BE

Bulgaria

BU

Canada

CA

Chile

CI

China (Peoples Republic of China - does not apply to Hong Kong)

CH

Cyprus

CY

Czech Republic

EZ

Denmark

DA

Egypt

EG

Estonia

EN

Finland

FI

France

FR

Georgia (U.S.S.R. Treaty)

GG

Germany

GM

Greece

GR

Hungary

HU

Iceland

IC

India

IN

Indonesia (including Bali, Belitung, Flores, Moluccas, Sumatra, Timor)

ID

Ireland

EI

Israel

IS

Italy

IT

Jamaica

JM

Japan

JA

Kazakhstan

KZ

Korea, Republic of (South)

KS

Kyrgyzstan (U.S.S.R. Treaty)

KG

Latvia

LG

Lithuania

LH

Luxembourg

LU

Malta

MT

Mexico

MX

Moldova (U.S.S.R. Treaty)

MD

Morocco

MO

Netherlands

NL

New Zealand

NZ

Norway

NO

Pakistan

PK

Philippines

RP

Poland

PL

Portugal

PO

Romania

RO

Russia (Federation)

RS

Slovakia (Slovak Republic)

LO

Slovenia

SI

South Africa

SF

Spain

SP

Sri Lanka

CE

Sweden

SW

Switzerland

SZ

Tajikistan (U.S.S.R. Treaty)

TI

Thailand

TH

Trinidad and Tobago

TD

Tunisia

TS

Turkey

TU

Turkmenistan (U.S.S.R. Treaty)

TX

Ukraine

UP

United Kingdom

UK

Uzbekistan (U.S.S.R. Treaty)

UZ

Venezuela

VE