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Policies and Procedures

Procedure 1119.1 – Completing Tax Withholding Forms as a Foreign National Scholarship/Fellowship Awardee

Procedure Statement

Foreign nationals receiving scholarship and fellowship assistance must complete taxation forms. These forms are used in determining the appropriate method of taxation and withholding. To determine which forms should be completed, there are certain rules and regulations that are applied to each foreign national.

Forms and Instructions

Completion of the following forms is required of foreign nationals receiving financial aid awards:

a. Form PR-100, Foreign National Information Form. Completed by foreign nationals to determine whether they are resident or nonresident aliens for tax purposes. This form also provides information to ensure proper tax withholding and reporting.

b. Form W-8BEN. Documents that the nonresident alien is not subject to backup withholding rules, but does not exempt the payee from the 30% (or lower treaty) nonresident withholding rates. It is used to claim an exemption from income tax withholding based on an exemption for scholarship/fellowship grants under tax treaties between the U.S. and the grantee's country of residence.


Other Forms, Instructions, and Publications for Foreign Nationals from the Internal Revenue Service (IRS):

Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations

Publication 519, U.S. Tax Guide for Aliens

Publication 970, Scholarships and Fellowships

Form W-7, Application for Individual Taxpayer Identification Number

Form 1040NR, U.S. Nonresident Alien Income Tax Return

Instructions for Form 1040NR, U.S. Nonresident Alien Income Tax Return

Instructions for Forms 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and

1042-S, Foreign Person's U.S. Source Income Subject to Withholding

Other publications, forms, and instructions provided by the IRS

Related Data

None.

History

Revised:
August 24, 2009