IRS Publication 515

AAA

DEFINITION of 'IRS Publication 515 '

A document published by the Internal Revenue Service that provides guidance to businesses who pay income to foreign workers. The document applies to tax withholding for foreign individuals, businesses, trusts and organizations. Publication 515 outlines the personnel responsible for withholding tax (referred to as withholding agents), the type of taxes subject to withholding and how withholding is to be conducted.

INVESTOPEDIA EXPLAINS 'IRS Publication 515 '

Tax withheld from a foreign worker is referred to as non-resident alien, or NRA, withholding, and is different from regular income tax withholding. Unlike resident aliens and U.S. citizens who are taxed on worldwide income, non-resident aliens are subject to taxation on income from U.S. work. The typical withholding percentage is 30%, although exemptions are allowed, which can lower this percentage.

RELATED TERMS
  1. IRS Publication 550

    A document published by the Internal Revenue Service (IRS) that ...
  2. 183-Day Rule

    The 183-day rule is part of the "substantial presence test" used ...
  3. Alien

    Any person who is not a citizen of the country in which he or ...
  4. Income Tax

    A tax that governments impose on financial income generated by ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Nonresident Alien

    A non-U.S. citizen who doesn't pass the green card test or the ...
Related Articles
  1. How To Appeal Your IRS Audit
    Taxes

    How To Appeal Your IRS Audit

  2. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

  3. I am a non-U.S. citizen living outside ...
    Investing

    I am a non-U.S. citizen living outside ...

  4. When am I not required to submit a social ...
    Retirement

    When am I not required to submit a social ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center