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 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. Investing

    I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. internet broker. Do ...

    The tax implications for a foreign investor will depend on whether that person is classified as a resident alien or a non-resident alien. To be considered a non-resident alien, a person must ...
  4. Retirement

    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 for whom you claim as dependents. However, exceptions do apply. ...
  5. Economics

    How is the invisible hand affected in a communist or socialist economy?

    Discover why the invisible hand of the market is compromised by socialist and communist economies, where the government controls the means of production.
  6. Economics

    What is the affect of the invisible hand on the government?

    Find out why government policy goals are often frustrated by the same forces that guide the invisible hand of the market towards efficient outcomes.
  7. Economics

    How does the invisible hand affect a capitalist economy?

    Take a deeper look at how the invisible hand of the market works and why it is so crucial for understanding how capitalist economies function.
  8. Taxes

    What are the tax incentives or disincentives to vertical integration?

    Merging companies through vertical integration can provide companies in the United States with a marginally advantageous position in terms of taxation.
  9. Economics

    What impact does quantitative easing have on consumers in the U.S.?

    Dig deeper into the Federal Reserve's quantitative easing policies and what potential impacts they may have on American consumers.
  10. Investing Basics

    Are arm's length transactions always better than transactions not at arm's length?

    Transactions not at arm's length have real tax and other consequences for individuals and businesses, but they are not necessarily always worse.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center