Payments to Foreign Nationals

The University of Virginia is required to comply with U.S. federal tax law when making payments to or on behalf of non-citizens of the United States. In addition to tax regulations, certain payments are only allowable based on an individual’s immigration status pursuant to immigration law. Since U.Va. is required to comply with U.S. tax and immigration laws when making payments to its foreign visitors, and since these rules can be extremely complex, Human Resources-Compliance and Immigration Services employs a Foreign National Tax Specialist devoted specifically to these matters. The Foreign National Tax Specialist assists U.Va.’s foreign visitors in understanding their U.S. tax obligations, while keeping U.Va. in compliance with tax and immigration laws.

Many international students, research scholars and visitors come to U.Va., and most are "nonresident aliens" for tax purposes. Individuals who are deemed to be "nonresident aliens" for US federal income tax purposes are subject to tax under the Internal Revenue Code. In general, all income (wages, scholarships, fellowships, prizes, awards, etc.) paid by the university to a foreign person, or to a third party on behalf of the foreign person, is taxable UNLESS the income is:

(1) exempt from tax under the provisions of an income tax treaty between the U.S. and the person's country of residence; (2) exempt from tax under an Internal Revenue Code section; or (3) is foreign sourced income.

These tax laws are complex and can be confusing to the foreign national and/or staff person responsible for complying with the regulations. The Foreign National Tax Specialist is available to help you understand some of these confusing tax issues whether you are an international student, scholar, or visitor receiving a payment, or the faculty/staff attempting to make a payment to a non-citizen.

Please contact Compliance and Immigration Services with any questions or concerns regarding foreign national tax issues.

Links and Forms:

• Required Documentation for Travel or Honoraria Payments Checklist
• Application for IRS Individual Taxpayer ID (Form W-7)
• IRS Publication: Understanding your IRS ITIN
• IRS Notice 1392: Supplemental Form W-4 Instructions for Nonresident Aliens
• Approval for Honoraria (U.Va. Form for Department Use)
• Exemption from Withholding for Nonresident Alien
• Nonresident Alien Visa Table