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    jodelight's Avatar
    jodelight Posts: 1, Reputation: 1
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    #1

    Oct 7, 2009, 01:53 AM
    What form need to fill for non resident income earned?
    Hi All,

    This is JO...

    I need a clarification on this:

    A person has incorporated a company in Netherlands and earning income through investments, some investments made in USA since 6 years, where in return he is earning dividend.
    Being a non - us resident, he has not paid any taxes on his earnings from investment in USA.

    Can any one clarify whether a person need to file a tax return on incomes earned through investments in USA? If yes, then what form he need to fill?
    Five Rings's Avatar
    Five Rings Posts: 459, Reputation: 7
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    #2

    Oct 7, 2009, 06:52 AM

    A nonresident alien earning dividend income in the US will be exposed to a 30% withholding tax under our tax laws. If there is a treaty between the 2 countries this would probably be reduced to 15%. The income he receives will be net of tax.

    No further reporting is required.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #3

    Oct 9, 2009, 07:16 PM

    If you received dividends from a U.S. company and no U.S. tax was withheld, you need to file Form 1040NR and pay the 30% (or lower treaty rate). If it was your company that received the dividend and there was no tax withheld, then use Form 1120-F.
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