Form 8233: Exemption From Withholding on Compensation for Independent Personal Services

The form used by a nonresident alien to claim an exemption from withholding on compensation for personal services due to a tax treaty.
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What is Form 8233?

Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, is used by nonresident alien individuals to claim exemption from withholding on compensation for personal services because of a tax treaty or the personal exemption amount.

Who Uses Form 8233?

Nonresident aliens who:

Common situations include:

How is Form 8233 Different from Form W-8BEN?

When Should Form 8233 Be Filed?

The nonresident alien should provide Form 8233 to the withholding agent (employer or payer) before receiving payment. The withholding agent then:

  1. Reviews and accepts or rejects the form
  2. For certain treaty claims, must send a copy to the IRS for review
  3. Receives IRS approval before applying the reduced withholding rate

What Information is Required?

Form 8233 requires:

IRS Review Process

For many types of treaty claims on Form 8233, the withholding agent must send a copy to the IRS. The IRS will review the claim and notify the withholding agent whether to apply the treaty benefits. This process can take 30 days or more.

Responsibilities of the Withholding Agent

The employer or payer (withholding agent) must:

Official Source: IRS Form 8233

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