Researching Tax Treaties - IRS Publications 54 and 901 - John R. Dundon II, Enrolled Agent
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Researching Tax Treaties – IRS Publications 54 and 901

Business Entity Selection and the Tax Consequences of Converting

Researching Tax Treaties – IRS Publications 54 and 901

IRS Publication 901 U.S. Tax Treaties is to be used as a quick reference guide that will tell you whether a tax treaty between the United States and a particular country offers a reduced rate of, or possibly a complete exemption from, U.S. income tax for residents of particular countries. It is not a complete guide to all provisions of every income tax treaty.

Tables in the back of the publication show the countries that have income tax treaties with the United States, the tax rates on different kinds of income, and the kinds of income that are exempt from tax. In addition to the tables in the back of the publication, the publication contains discussions of the exemptions from tax and certain other effects of the tax treaties on the following types of income:

  1. Pay for certain personal services performed in the United States,
  2. Pay of a professor, teacher, or researcher who teaches or performs research in the United States for a limited time,
  3. Amounts received for maintenance and studies by a foreign student or apprentice who is here for study or experience,
  4. Wages, salaries, and pensions paid by a foreign government.

Some common tax treaty benefits available to U.S. citizens and resident aliens with foreign income are explained in IRS Publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad. Also look here for the complete texts of many of the tax treaties in force and their accompanying Treasury Technical Explanations.

For further information on tax treaties refer also to the US Treasury Department’s Tax Treaty Documents page.