Statutory rate without a valid treaty claim: 30%.
Status and notes
- The 1973 U.S.-U.S.S.R. treaty still applies to Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan.
- Belarus: the United States confirmed on December 17, 2024 the suspension of Article III(1)(g) and the related letters, effective December 17, 2024 until December 31, 2026 or earlier if the two governments agree (IRS Table 3, note 7). Article III(1)(g) is the interest provision in the table above, so interest to a Belarus resident is withheld at 30% while the suspension lasts.
- The treaty has no limitation-on-benefits article.
Rates on investment and other income
Treaty in effect generally from Jan. 1, 1987. Protocols in effect from: none listed. IRS country code see Form 1042-S country codes.
| Income | 1042-S code | Treaty rate | Article |
|---|---|---|---|
| Interest paid by U.S. obligors, general | 01 | 0% (exempt)n | III(1)(g) |
| Dividends paid by U.S. corporations, general | 06 | 30% | None |
| Dividends qualifying for the direct dividend rate | 07 | 30% | None |
| Royalties: industrial, commercial or scientific equipment | 10 | 0% (exempt) | III(1)(a) |
| Royalties: know-how and other industrial royalties | 10 | 0% (exempt) | III(1)(a) |
| Royalties: patents | 10 | 0% (exempt) | III(1)(a) |
| Royalties: motion picture and television copyrights | 11 | 0% (exempt) | III(1)(a) |
| Royalties: copyrights (including software, unless the treaty says otherwise) | 12 | 0% (exempt) | III(1)(a) |
| Pensions and annuities | 15 | 30% | none |
| U.S. Social Security benefits (applies to 85% of the payment) | 15 | 30% | None |
"n/a" means the payment type is not covered by the royalty article: equipment leasing is business profits (no withholding without a permanent establishment) or other income. Superscript letters are the IRS's own conditions, listed at the end of this page.
Pay for personal services performed in the United States
Each row is an exemption the treaty gives, with the limits the IRS lists. All conditions in a row must be met; if any is not, the pay is withheld on at 30% (contractors) or under the wage rules (employees). Services performed entirely outside the United States are foreign-source and need no treaty claim.
| Code | Purpose | Maximum presence in U.S. | Required employer or payer | Maximum amount | Article |
|---|---|---|---|---|---|
| 16 | Scholarship or fellowship grant19 | 5 years | Any U.S. or foreign resident | Limited | VI(1) |
| 17 | Independent personal services | 183 days | Any U.S. or foreign contractor | No limit | VI(2) |
| 18 | Dependent personal services57 | 183 days | Any U.S. or foreign resident | No limit | VI(2) |
| 19 | Teaching420 | 2 years | Any U.S. educational or scientific institution | No limit | VI(1) |
| 20 | Remittances or allowances | 5 years | Any U.S. or foreign resident | Limited | VI(1) |
| 20 | Compensation while gaining experience21 | 1 year | C.I.S. resident | No limit | VI(1) |
| 20 | Compensation under U.S. Government program | 1 year | Any U.S. or foreign resident | No limit | VI(1) |
How the payee claims these rates
- Individuals claim a reduced rate on interest, dividends, royalties or pensions in Part II of Form W-8BEN: treaty country, article, rate and any conditions. Most claims need a U.S. TIN or a foreign TIN on the form.
- Entities claim in Part III of Form W-8BEN-E, which also asks which limitation-on-benefits test the entity meets (this treaty has no limitation-on-benefits article).
- Pay for services performed in the United States by an individual is exempted on Form 8233, not the W-8BEN, one form per tax year and per payer.
- The payer reports the payment on Form 1042-S with the income code shown above and chapter 3 exemption code 04 (exempt or reduced withholding under a tax treaty). From 2026 an exemption code is required whenever less than 30% is withheld.
The rate in a table is the most the United States may withhold under the treaty, not an entitlement. The payee has to be a resident of Commonwealth of Independent States under the treaty, the beneficial owner of the income, and (for entities) meet the limitation-on-benefits article, and the payer has to hold a valid certificate before the payment. The IRS tables are a summary: check the article itself when the amount is material.
Questions payers ask
What is the U.S. withholding rate on dividends paid to a resident of Commonwealth of Independent States?
30% on dividends generally and 30% on dividends qualifying for the direct dividend rate, under Article None, if the shareholder documents the claim on a W-8BEN or W-8BEN-E. Without a valid claim the rate is 30%.
What is the U.S. withholding rate on royalties paid to a resident of Commonwealth of Independent States?
0% on copyright and software royalties (income code 12), 0% on patent royalties and 0% on film and television royalties, under Article III(1)(a).
What is the U.S. withholding rate on interest paid to a resident of Commonwealth of Independent States?
0% under Article III(1)(g), before considering the Code's own exemptions for portfolio interest and bank deposit interest. See the note on this treaty at the top of the page.
Is a contractor from Commonwealth of Independent States working in the United States exempt from U.S. withholding?
Under Article VI(2), pay for independent personal services is exempt if the contractor is present in the United States for no more than 183 days, subject to the conditions in the article. An individual claims the exemption on Form 8233; without it, withhold 30%.
Do we withhold on a contractor from Commonwealth of Independent States who works only outside the United States?
No. Pay for services performed entirely outside the United States is foreign-source income: no withholding and no Form 1042-S. Keep the contractor's W-8BEN or W-8BEN-E on file.
The IRS notes behind the figures
Notes to the rates (IRS Table 1)
- n The exemption applies only to interest on credits, loans, and other indebtedness connected with the financing of trade between the United States and the C.I.S. member. It does not include interest from the conduct of a general banking business.
Notes to the services table (IRS Table 2)
- 4 Does not apply to compensation for research work primarily for private benefit.
- 19 Applies also to a participant in a program sponsored by the U.S. Government or an international organization.
- 20 The exemption is also extended to journalists and correspondents who are temporarily in the U.S. for periods not longer than 2 years and who receive compensation from abroad.
- 21 Also exempt are amounts of up to $10,000 received from U.S. sources to provide ordinary living expenses. For students, the amount will be less than $10,000, determined on a case by case basis.
- 57 Remuneration for employment exercised aboard a ship or aircraft operated in international traffic by a resident of a contracting State may be taxed in that State. Canada may tax the income from employment if the income is derived by a resident of Canada and the ship or aircraft is operated by a resident of Canada. If operated by a Luxembourg resident and Luxembourg fails to tax the income, such income shall be taxed in the State of which the employee is a resident. The income may be taxed in Tunisia only if the ship or aircraft is operated by an enterprise that is managed and controlled in Tunisia.
Transcribed from the IRS Tax Treaty Tables. Treaty texts and technical explanations: United States income tax treaties, A to Z.
Other treaty countries
Australia · Austria · Bangladesh · Barbados · Belgium · Bulgaria · Canada · Chile · China · Cyprus · Czech Republic · Denmark · Egypt · Estonia · Finland · France · Germany · Greece · Iceland · India · Indonesia · Ireland · Israel · Italy · Jamaica · Japan · Kazakhstan · Latvia · Lithuania · Luxembourg · Malta · Mexico · Morocco · Netherlands · New Zealand · Norway · Pakistan · Philippines · Poland · Portugal · Romania · Slovak Republic · Slovenia · South Africa · South Korea · Spain · Sri Lanka · Sweden · Switzerland · Thailand · Trinidad and Tobago · Tunisia · Turkey · Ukraine · United Kingdom · Venezuela