Hey everyone! I’m a non-U.S. resident earning income from a U.S. LLC through freelancing and digital products. I heard about “tax treaties” that can reduce how much tax I pay to the U.S.. But, I’m a bit lost. Are there specific countries that benefit more than others? And do I have to apply for the treaty every year, or is it a one-time thing?
Answer by: abdullah-al-naim
1 month ago
Here’s what that usually means:
For individuals (e.g. freelancers, remote workers): You’ll typically file Form 8233 for personal services income, or Form W-8BEN to claim treaty benefits for other types of income.
For foreign-owned single-member LLCs: You’ll attach Form 8833 when filing your 1040-NR to disclose treaty claims.
Some treaties have clauses that require proof of residency every year, so make sure to update those forms when your status changes.
Important note: If you don’t file the treaty forms, the IRS assumes you’re not eligible and withholds 30% by default.
