U.S. Nonresident

Foreign individuals who are non-citizens, do not have a U.S. Green Card, or meet the substantial presence test will generally be considered nonresidents of the U.S. Nonresident individuals are generally taxable only on their:

1. Income effectively connected to a U.S. trade or business (e.g. compensation earned while working in the U.S. or earnings from U.S. partnerships or closed-end U.S. real estate funds) at graduated individual income tax rates, and
2. U.S. source income not effectively connected to a U.S. trade or business (for example dividends or interest from U.S. entities) at a flat 30% tax rate unless the individual can utilize an income tax treaty which reduces the 30% tax rate to a lower treaty rate. The U.S. income tax treaties should be consulted as certain nonresident individuals may also be allowed an exclusion from U.S. income taxation if certain parameters are achieved.