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. Income Tax

    A tax that governments impose on financial income generated by ...
  4. Alien

    Any person who is not a citizen of the country in which he or ...
  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 FAQS
  1. I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. ...

    The tax implications for a foreign investor will depend on whether that person is classified as a resident alien or a non-resident ... Read Full Answer >>
  2. When am I not required to submit a social security number on my tax return?

    When filing your tax return, you are generally required to include the social security numbers of yourself and the individuals ... Read Full Answer >>
  3. In what types of economies are regressive taxes common?

    Regressive taxation systems are more likely to be found in developing countries or emerging market economies than in the ... Read Full Answer >>
  4. What's the difference between regressive and progressive taxes?

    The U.S. federal tax system and local and state tax systems are complex in that they combine progressive, regressive and ... Read Full Answer >>
  5. How do businesses determine if an asset may be impaired?

    In the United States, assets are considered impaired when net carrying value (book value) exceeds expected future cash flows. ... Read Full Answer >>
  6. What are the differences between regressive, proportional and progressive taxes?

    Tax systems fall into three main categories within the tax code: regressive, proportional and progressive taxes. Regressive ... Read Full Answer >>
Related Articles
  1. Taxes

    How To Appeal Your IRS Audit

    The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars.
  2. Taxes

    Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.
  3. Economics

    How The GDP Of The US Is Calculated

    The US GDP may not be a perfect economic measure, but the ability to compare it to prior periods and other countries makes it the most applicable.
  4. Taxes

    Are Taxes the Solution for Income Inequality?

    Income inequality continues to increase. Why? And are taxes the solution?
  5. Taxes

    Presidential Candidates And Wall Street In 2016

    Wall Street's influence will play a large role in the 2016 presidential race. As election season begins, candidates are showing their true colors.
  6. Economics

    Presidential Candidates For Students In 2016

    Early 2016 Presidential candidates are already making clear their intended strategies for solving the country's growing student loan debt issues.
  7. Economics

    China And The Maritime Silk Road

    We provide an overview of China's planned Maritime Silk Road.
  8. Forex Education

    What Is A Currency War And How Does It Work?

    We look at what a currency war is, what factors may lead to it, the impacts of such a strategy, and whether there is a currency war currently.
  9. Taxes

    How The IRS Catches Tax Cheats & Liars

    When civil and criminal penalties don't deter people from skipping out on their taxes, the IRS has other tools it can use.
  10. Economics

    The Field So Far: US 2016 Presidential Candidates

    Over the past several months, there has been a lot of speculation as to who will make a run at the Republican and Democratic nominations.

You May Also Like

Hot Definitions
  1. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  2. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  3. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  4. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  5. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
Trading Center