Some Typical Tax Treaty Benefits Some general information follows concerning possible tax treatybenefits for income from certain activities in the United States.However, tax treaty benefits also cover such income as dividends,interest, rentals, royalties, pensions, and annuities. If you are aresident of a treaty country and receive this type of income, youshould consult the applicable treaty. See Table 9-1, Tableof Tax Treaties, for a list of treaty countries. Get Publication 901for more information on tax treaties. The following provisions give a general explanation of somebenefits found in many tax treaties. The conditions for claiming theexemptions vary under each tax treaty. You should read the treaty foryour country of residence to find out what the conditions are. Personal Services Nonresident aliens from treaty countries who are in the UnitedStates for a short stay and also meet certain other requirements maybe exempt from tax on their compensation received for personalservices performed in the United States. Many tax treaties requirethat the nonresident alien claiming this exemption be present in theUnited States for a total of not more than 183 days during the taxyear. Other tax treaties specify different periods of maximum presencein the United States, such as 180 days or 90 days. Spending part of aday in the United States counts as a day of presence. Tax treaties may also require that: The compensation cannot be more than a specific amount(frequently $3,000), and The individual have a foreign employer; that is, anindividual, corporation, or entity of a foreign country. For Teachersand Professors Nonresident alien teachers or professors who are residents ofcertain treaty countries and who temporarily visit the United Statesfor the primary purpose of teaching at a university or otheraccredited educational institution are not subject to U.S. income taxon compensation received for teaching for the first 2 or 3 years aftertheir arrival in the United States. Many treaties also provideexemption for engaging in research. Generally, the teacher or professor must be in the United Statesprimarily to teach, lecture, instruct, or engage in research. Asubstantial part of that person's time must be devoted to thoseduties. The normal duties of a teacher or professor include not onlyformal classroom work involving regularly scheduled lectures,demonstrations, or other student-participation activities, but alsothe less formal method of presenting ideas in seminars or otherinformal groups and in joint efforts in the laboratory. Table of Tax Treaties For Employees ofForeign Governments All treaties have provisions for the exemption of income earned bycertain employees of foreign governments. However, a difference existsamong treaties as to who qualifies for this benefit. Under manytreaties, aliens admitted to the United States for permanent residencedo not qualify. Under most treaties, aliens who are not nationals orsubjects of the foreign country do not qualify. Employees of foreigngovernments should read the pertinent treaty carefully to determinewhether they qualify for benefits. Chapter 10 of this publication alsohas information for employees of foreign governments. For Students, Apprentices,and Trainees Students, apprentices, and trainees generally are exempt from taxon remittances (including scholarship and fellowship grants) receivedfrom abroad for study and maintenance. Also, under certaincircumstances, a limited amount of compensation received by students,apprentices, and trainees may be exempt from tax. Capital Gains Most treaties provide for the exemption of gains from the sale orexchange of personal property. Generally, gains from the sale orexchange of real property located in the United States is taxable.