Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country providesan exemption from, or a reduced rate of, withholding for certain itemsof income, you should notify the payer of the income (the withholdingagent) of your foreign status to claim the benefits of the treaty.Generally, you do this by filing Form 1001, Ownership, Exemption,or Reduced Rate Certificate, with the withholding agent.However, do not use Form 1001 for dividends or compensation forpersonal services. For dividends, the payor can rely on your addressof record as the basis for allowing you the benefit of the treaty. Therules that apply to compensation for personal services are discussednext. Independent contractors.If you perform personal services as an independent contractor(rather than an employee) and you can claim an exemption fromwithholding on that personal service income because of a tax treaty,submit Form 8233 to each withholding agent from whom amounts will bereceived. Students, teachers, and researchers.Alien students, teachers, and researchers who perform dependentpersonal services (as employees) can also use Form 8233 to claimexemption from withholding of tax on compensation for services that isexempt from U.S. tax under a U.S. tax treaty. Attach the appropriate statement shown in Appendix A(for students) or Appendix B (for teachers andresearchers) at the end of this publication to the Form 8233 and giveit to the withholding agent. For treaties not listed in theappendices, attach a statement in a format similar to those for othertreaties. Employees.If you are not a student, teacher, or researcher, but you performservices as an employee and your pay is exempt from U.S. income taxunder a tax treaty, you can avoid having tax withheld from your wages.Give a statement to your employer, in duplicate, for the tax yeargiving your name, address, taxpayer identification number, and countryof which you are a resident, and certifying that: You are not a citizen or resident of the United States, and Your compensation is exempt from U.S. income tax and why itis exempt. The statement should indicate the tax treaty and provision underwhich you claim the exemption and should show the facts you rely on toprove you meet the requirements of a treaty provision. These can befound in the applicable tax treaty article. Date and sign the statement. Identify the tax year to which itapplies and the compensation to which it relates. Include adeclaration that you make the statement under the penalties ofperjury. Special events and promotions.Withholding at the full 30% rate is required for payments made to anonresident alien or foreign corporation for gate receipts (ortelevision or other receipts) from rock music festivals, boxingpromotions, and other entertainment or sporting events, unless thewithholding agent has been specifically advised otherwise by letterfrom the IRS. This is true even if the income may be exempt fromtaxation by provisions of a tax treaty. One reason for this is thatthe partial or complete exemption is usually based on factors thatcannot be determined until after the close of the tax year. Envelope: The required letter should be requested from the:   Internal Revenue Service luxury hotels in ValkenburgAssistant Commissioner (International) Attn: OP:IN:D:C:SS:TS 950 L'Enfant Plaza South, S.W. Washington, DC 20024. Gran hotel LimerickEntertainers and athletes can also apply for reduced withholding onthe basis of their net income after expenses. See Centralwithholding agreements, earlier, under Withholding fromCompensation. Caution: You will be required to pay U.S. tax, at the time of your departurefrom the United States, on any income for which you incorrectlyclaimed a treaty exemption. For more details on treaty provisions thatapply to compensation, see Publication 901.