Taxpayer Identification Number:
Payments for anything other than reimbursement of substantiated expenses are taxable payments. The payment will be subject to the withholding of the appropriate tax amount unless a tax treaty is claimed. In order to claim a tax treaty for services the individual must have a valid taxpayer identification number (U.S. social security number, or U.S. individual taxpayer identification number). A tax treaty for a royalty payment can be claimed using a U.S. social security number, a U.S. individual taxpayer identification number, or a Foreign taxpayer identification number. Claiming the royalty treaty with certain countries will only result in a reduced rate of tax withholding.
Declaration by Visitors Engaged in Academic Activities:
A foreign national traveling on a B visa can receive payments other than reimbursement of substantiated expenses if they meet certain criteria. The payee must complete a Duke University Declaration by Visitors form to determine if they are eligible to receive reimbursement or honoraria. Attach a copy of the completed form to each payment request. (B-2 and WT visas also require a copy of the Declaration by Visitors form to receive reimbursement of substantiated expenses)
Duke University Certificate of Foreign Status:
The payee must complete the form for all payments other than reimbursement of substantiated expenses. Attach a copy of the completed form to each payment request.
Exempt From Withholding on Honoraria Payments and Compensation for Independent Personal Services of a Nonresident Alien Individual (IRS Form 8233):
Refer to the tax treaty list of countries, which have negotiated tax treaty agreements with the United States for payments of independent personal services (non-employee compensation). Please note that payees from these countries must meet certain requirements in order to be eligible to claim the tax treaty. Eligible payees from these countries who would like to claim the tax treaty exemption from tax withholding must have a valid U.S. taxpayer identification number and must complete IRS Form 8233.
Form 8233 must be received in Accounts Payable at least fifteen days prior to payment being issued. Payments to individuals who are not eligible to claim a tax treaty exemption, or who do not submit Form 8233 in a timely manner, will be subject to thirty percent (30%) withholding for Federal taxes and six percent (6%) withholding for North Carolina State taxes.