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University Controller’s Office

Tax Treaty

International Tax Treaty Benefits and Countries

Payments to nonresident entities are generally taxable at a 30% rate at the time of payment.  One of the exclusions for this 30% withholding would be if the company that the University is conducting business with is registered in a country that has a tax treaty.  Residents and entities of certain countries may be entitled to reduced tax rates or exemption due to a reciprocal tax treaty between that country and the United States.

DISCLAIMER: Below are listed royalty rates for Other Copyright Royalties related to book royalties.  They do not assume the use of the same income code or provide the same benefit for other royalty types.  If your royalty falls under Industrial, Equipment, Motion Picture, TV or Radio, Software, or Treaty for NE or Natural Resources, please see the Tax Department for the proper income code and federal tax withholding obligation information. Table updated 2/1/2018

CountryArticleFed W/HIncome code
ArmeniaIII0%12-Royalty Income Copyright
Australia125%12-Royalty Income Copyright
Austria120%12-Royalty Income Copyright
AzerbaijanIII0%12-Royalty Income Copyright
Bangladesh1210%12-Royalty Income Copyright
Barbados125%12-Royalty Income Copyright
BelarusIII0%12-Royalty Income Copyright
Belgium120%12-Royalty Income Copyright
Bulgaria125%12-Royalty Income Copyright
CanadaXII0%12-Royalty Income Copyright
China1110%12-Royalty Income Copyright
Cyprus140%12-Royalty Income Copyright
Czech Republic120%12-Royalty Income Copyright
Denmark120%12-Royalty Income Copyright
Egypt1315%12-Royalty Income Copyright
Estonia1210%12-Royalty Income Copyright
Finland120%12-Royalty Income Copyright
France120%12-Royalty Income Copyright
GeorgiaIII0%12-Royalty Income Copyright
Germany120%12-Royalty Income Copyright
GreeceVII0%12-Royalty Income Copyright
Hungary110%12-Royalty Income Copyright
Iceland120%12-Royalty Income Copyright
India1215%12-Royalty Income Copyright
Indonesia1310%12-Royalty Income Copyright
Ireland120%12-Royalty Income Copyright
Israel1410%12-Royalty Income Copyright
Italy120%12-Royalty Income Copyright
Jamaica1210%12-Royalty Income Copyright
Japan120%12-Royalty Income Copyright
Kazakhstan1210%12-Royalty Income Copyright
Korea, South1410%12-Royalty Income Copyright
KyrgyzstanIII0%12-Royalty Income Copyright
Latvia1210%12-Royalty Income Copyright
Lithuania1210%12-Royalty Income Copyright
Luxembourg130%12-Royalty Income Copyright
Malta1210%12-Royalty Income Copyright
Mexico1210%12-Royalty Income Copyright
MoldovaIII0%12-Royalty Income Copyright
Morocco1210%12-Royalty Income Copyright
Netherlands130%12-Royalty Income Copyright
New Zealand125%12-Royalty Income Copyright
Norway100%12-Royalty Income Copyright
PakistanVIII0%12-Royalty Income Copyright
Philippines1315%12-Royalty Income Copyright
Poland1310%12-Royalty Income Copyright
Portugal1310%12-Royalty Income Copyright
Romania1210%12-Royalty Income Copyright
Russia120%12-Royalty Income Copyright
Slovak Republic120%12-Royalty Income Copyright
Slovenia125%12-Royalty Income Copyright
South Africa120%12-Royalty Income Copyright
Spain125%12-Royalty Income Copyright
Sri Lanka Protocol1210%12-Royalty Income Copyright
Sweden120%12-Royalty Income Copyright
Switzerland120%12-Royalty Income Copyright
TajikistanIII0%12-Royalty Income Copyright
Thailand125%12-Royalty Income Copyright
Trinidad and Tobago140%12-Royalty Income Copyright
Tunisia1215%12-Royalty Income Copyright
Turkey1210%12-Royalty Income Copyright
TurkmenistanIII0%12-Royalty Income Copyright
Ukraine1210%12-Royalty Income Copyright
United Kingdom120%12-Royalty Income Copyright
UzbekistanIII0%12-Royalty Income Copyright
Venezuela1210%12-Royalty Income Copyright
Other countries–30%

Table 1. Tax Rates on Income Other Than Personal Service (Royalties)

IRS Overview & Additional Guidance