What are the provisions regarding the taxability of per diem allowances received during the stay in the USA?
Per Diem allowance granted while on deputation is not taxable in the taxpayer’s hands as long as the allowance was actually spent by him on deputation and of course satisfies the condition of ‘reasonableness’. 23. What are the provisions regarding the applicability of Social Security and Medicare taxes for those who go abroad on temporary visas: Compensation for services performed in the U.S. by a nonresident alien individual temporarily in the U.S. in F-1, J-1, M-1, or Q-1 status is only exempt from FICA and Medicare taxes so long as the services performed are in connection with the purpose for which the individual entered the country. Before leaving the United States, aliens generally must obtain a certificate of compliance. This document, also popularly known as the sailing permit or the departure permit, is part of the income tax form to be filed before leaving.
