I lived in the UK for more than 4 years before I moved to the US for doing a postdoctoral research here. I was a resident in the UK before I come to the US. According to the US/UK income tax treaty (see below), I think I should be eligible for the benefit. Therefore, I was trying to apply for it, but my institute refuses to offer me the benefit because I am not an UK permanent resident. However, I read the US/UK tax treaty article 20A (see below). It only says that "who was immediately before that visit a resident of the other Contracting State". It doesn't say that I have to be a permanent resident or a citizen of the UK. If anyone has the same experience or any advice would be very appreciated.

Article 20A: Teachers
1. A professor or teacher who visits one of the Contracting States for a period not exceeding two years for the purpose of teaching or engaging in research at a university, college or other recognised educational institution in that Contracting State and who was immediately before that visit a resident of the other Contracting State, shall be exempted from tax by the first-mentioned Contracting State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that State for such purpose.

Did you become a UK resident as specified under UK immigration law?

If so, the treaty applies. If not, it does not.

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Originally Posted by AtlantaTaxExpert

Did you become a UK resident as specified under UK immigration law?

If so, the treaty applies. If not, it does not.

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Thanks for the quick answer!

I was doing a PhD under the UK student visa (Tier 4) during the past 4 years. I certainly was a legal resident in the UK. However, my institute still refuses to take my application, but they told me I could apply for the tax return myself for the US/UK tax treaty exemption when I file my tax with IRS next year. I am just wondering if there is anyway I can do instead of letting them withhold my money for a year?

Sorry, but most countries do NOT consider students to be residents.

What does your J-1 say regarding your citizenship/residency?

This is what I found for the definition as UK resident:

The circumstances in which individuals are treated as UK resident for tax purposes include the following:
• they spend 183 days or more here in any tax year or more than 90 days on average over a period of up to 4 years;
• they come to the UK intending to live here permanently or for at least three years;
• they come to the UK for a purpose (for example employment) that will mean that they remain here for at least two years (whether or not, in a particular year, they spend 183 days here); and
• they usually live in the UK and go abroad for short periods, for example on business trips.

My D-2019 lists my home country for the permanent residency, but I think it should not against the tax treaty eligibility?

International students receive special status as NON-resident aliens.

This exempts them from certain taxes, but it also denies them residency status.

If you contact the UK Interior Ministry, I suspect they would tell you that you are NOT a UK resident for treaty purposes.

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Originally Posted by AtlantaTaxExpert

International students receive special status as NON-resident aliens.

This exempts them from certain taxes, but it also denies them residency status.

If you contact the UK Interior Ministry, I suspect they would tell you that you are NOT a UK resident for treaty purposes.

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I didn't find any definition for non-resident aliens in the UK immigration laws. I suspect that it is the US immigration categorisation. I will consult with IRS. Thank you very much for your help!

Be sure to call the International Tax Hotline.