Is the University required to withhold Federal income taxes from payments to foreign nationals for speaker fees, honoraria or stipends?
Yes. We are required by Federal law to withhold 30% of Federal income tax from the payment unless the payment is exempt under a U.S. treaty and the payee has a U.S. Taxpayer Identification Number or U.S. social security number. If these two conditions are met, the Foreign National Tax Processing Unit will prepare an IRS Form 8233 for the foreign national to document the tax exempt status. Note that if a FNIF was completed for the payee in the current calendar year, it does not have to be completed again, but a copy needs to be attached to the Disbursement Request and submitted to the Foreign National Tax Processing Unit.
